With the deep analysis of the above alternatives, it is advised that the company ought to choose the alternative 3 in order to keep a competitive position in the long run. As the alternative 3 would make it possible for the company to not only introduce new and ingenious items in the market it would likewise decrease the high expenditures on R&D under alternative 2 and increase the earnings margins. It would make it possible for the company to increase its share prices also, as investors are willing to invest more in business with substantial R&D spending and increase in the total worth of the business.
Action and implementation Strategy
Method can be executed efficiently by establishing particular short term in addition to long term strategies. These strategies could be as follows;
Short Term Plan (0-1 year)
• Under the short-term plan Lucas Wang Stop Loss Strategy should carry out numerous activities to execute its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which generate the majority of its income.
• Analyze the present target market in addition to the marketplace section which is not consist of in the business's circle.
• Examine the existing financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Evaluate the potential investors and their nature, i.e. do they want long term benefits (capital gain), or the want early profits (dividend). It would let the business to know that just how much quantity ought to be spent on R&D.
Mid Term Plan (1-5 years)
• Acquire those companies in which the company has prospective experience to handle. Get most beneficial organizations with a strong dedication to health, to develop the customer's perceptions in the best direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Lucas Wang Stop Loss Strategy values and vision and to avoid potential risk of sunk cost.
Long Term Plan (1-10 years)
• Get organizations with health in addition to taste aspect, as the base for the Lucas Wang Stop Loss Strategy as a business producing healthy products has actually been developed under midterm strategy and now the company might move towards taste factor too to understand the customers, which focus more on taste rather than health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to develop brand-new items.
