Business Strategy AnalysisA) Key Issues and Actionable Implications1) Invest more in RLKa's R&D department. If Lars decides to invest about $6 million more in research and development, this is very risky because the company's survival largely depends on the successful launch of Ray's new product into the market.b. Since customers associate RLK with high-end audio-video design, investing money in R&D would increase their brand value and live up to consumers' expectations of their highly innovative products. However, RLK's competitors are downsizing and outsourcing R&D and exploiting cost advantages. If RLK decides to invest more money in R&D and the new product stagnates during launch, they run the risk of going bankrupt.2) Collaborate with Inova to work on the new product - IVida. Lars could acquire the software skills he needed from Inova for a fifth of what they would cost in the United States. The huge cost savings will benefit RLK in the short term, although transaction costs and royalties also had to be taken into account. One potential barrier to outsourcing could be Ray, who has long resisted any outside involvement in R&D operations. He may be unhappy with external ideas competing with his own and thus refuse to cooperate with Inova.c. RLK's organizational cultures are radically different from those of Inova. The enormous cultural disparity can lead to difficulties in cooperation. Additionally, time zone differences and the distance between them will further contribute to the problems. 3) Invest in marketing to build brand equity and satisfy customer needs. Keith suggested investing more in marketing to learn more about customer wants and needs. However, this is not the root of the problem and marketing will not help solve the current crisis that RLK is facing. The question is whether RLK should leverage its brand equity as it is known for its innovation and innovative capabilities. However, Lars needs to understand that outsourcing is not the only option and he needs to consider more options and possibilities. B) Evaluation criteria 1) Impact on RLK's R&D department – ​​Ray may have negative reactions to the idea of ​​collaborating with Inova and therefore refuse to cooperate with them. 2) Long-term viability and reduction of risk of any possible action – the solution should be beneficial in the long term with the least risk involved instead of just achieving cost benefits in the short term. 3) Impact on finances – ability to generate revenue and increase profits with RLK's new product launch and ability to achieve greater cost savings.