Proposed components of future strategy We recommend the company to work on five key areas to generate continued organic growth and retain margins Y Streamlined Workflow Since the company is a tool and equipment development company, it can build a centralized in diversification structure for sourcing and procurement removing duplicate efforts at business levels and creating economies of scale. It can help company reach related diversification stage. This will also help in resource efficiency in larger acquisitions Managers' 50% bonus was tied to earnings improvement, but the route to improvement was not Compensation defined, neither the management interfered. The company must change its compensation model by raising the importance of organic growth achievements A High European Exposure The company has high European exposure, as evident from exhibit 4. The step must be to reduce the exposure from Europe, and focus on high growth areas such as China and APAC region The company must remain tact in investing heavily in R&D. The patents will provide sustainable Innovation and competitive advantage over time. It will also help build close relationships with clients which acquisition can hedge risk in currency and prices giving more exposure to countries other than US. Additionally, company must invest regularly in capabilities to get competitive advantage. 1-2 middle to higher level acquisitions every 3-4 years will help sustainability Optimal resource In the diversified businesses, the company's capital must be shifted to Food Equipment, allocation Automotive OEM, Construction Products and Specialty Products businesses considering operating margin improvements in the past, and strong base of patents (exhibit 4)