With the deep analysis of the above options, it is recommended that the business must pick the alternative 3 in order to preserve a competitive position in the long run. As the alternative 3 would make it possible for the business to not only present new and ingenious items in the market it would likewise minimize the high expenses on R&D under alternative 2 and increase the earnings margins. It would make it possible for the business to increase its share costs as well, as financiers are willing to invest more in companies with significant R&D costs and boost in the overall worth of the business.
Action and implementation Strategy
Strategy can be executed efficiently by developing specific short term as well as long term plans. These plans might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Rockeford Inc need to perform various activities to execute its NHW strategy efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to analyze the core selling brand names, which generate most of its earnings.
• Evaluate the present target audience along with the marketplace sector which is not include in the business's circle.
• Examine the present financial information to measure the quantity that needs to be invested in the R&D and acquisitions.
• Examine the potential financiers and their nature, i.e. do they desire long term benefits (capital gain), or the desire early earnings (dividend). It would let the business to know that just how much amount must be invested in R&D.
Mid Term Plan (1-5 years)
• Get those organizations in which the company has potential experience to handle. Acquire most favorable companies with a strong commitment to health, to build the client's perceptions in the best instructions.
• Focus more on acquisitions than R&D to construct the base in the customer's mind about Rockeford Inc values and vision and to avoid prospective danger of sunk expense.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste aspect, as the base for the Rockeford Inc as a company producing healthy products has actually been built under midterm plan and now the company might move towards taste aspect as well to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the significant time to develop new products.
