With the deep analysis of the above options, it is recommended that the company ought to select the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would enable the business to not only present new and ingenious items in the market it would also minimize the high expenses on R&D under alternative 2 and increase the revenue margins. It would make it possible for the company to increase its share rates as well, as financiers want to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Method can be carried out efficiently by developing certain short-term in addition to long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term plan Nestle should perform various activities to execute its NHW strategy effectively. These activities are as follows;.
• Get the audit of its brand portfolio done, to analyze the core selling brands, which create the majority of its earnings.
• Evaluate the existing target market as well as the market section which is not consist of in the business's circle.
• Evaluate the current financial information to determine the quantity that should be invested in the R&D and acquisitions.
• Evaluate the prospective financiers and their nature, i.e. do they want long term benefits (capital gain), or the desire early profits (dividend). It would let the business to know that just how much amount must be spent on R&D.
Mid Term Plan (1-5 years)
• Get those companies in which the company has prospective experience to deal with. Acquire most beneficial companies with a strong commitment to health, to construct the client's perceptions in the ideal direction.
• Focus more on acquisitions than R&D to build the base in the customer's mind about Nestle worths and vision and to avoid possible danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste element, as the base for the Nestle as a business producing healthy items has actually been developed under midterm strategy and now the company could move towards taste element also to comprehend the consumers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the considerable time to build brand-new items.
