It would be in Paragon Tools best interest to move towards the acquisition of MonitoRobotics as they venture into meeting the needs of a modernizing world. This is important to consider because although Paragon Tools has the potential to grow business using traditional technology like the cyclic machine, optimal growth could come from the implementation of the latest technology of sensor and communications software. This new sensor technology and communications software have an advanced ability to monitor and report real-time information on the functioning of robotics equipment which can create brand value and overall increase profit for the corporation.
However, leaders and employees would also have to take into consideration that moving towards becoming a multi-business entity has both its pros and cons even though it embodies an effective corporate strategy for sustaining superior performance for MonitoRobotics value in the future.
An important reason to increase ambitions for acquisition of a partnering company is because when considering growth, whatever new development that is being offered will give an opportunity to open the doors to a greater market for business and provide attention for consumers to see how the brand is advancing towards their likes in a new day and age.
Not only will its initial performance decrease manufacturing cost within the company and prove that alliance will lead to double the profit for the next fiscal year but will also lead to the elimination of competition among the market since Paragon Tool will then provide something for the people that others dont.
However, with all there is to look forward to also comes the realization that a difficulty the company will face happens in the beginning as well when they have reached the phase of trying to merge with the present culture and there is an expectation of the employee to understand the different diverse cultures when trying to smooth this transition over. In terms of corporate strategy, this merger would fall under horizontal integration due to both companies coming together from once competing in the same industry.
sIn the end, the whole will be greater than the sum of its parts, according to Porters tests, when considering that this merger will deem attractive to its new market, be better off since they will be more advanced than their competition and overall increase the profits of the business with a low cost of entry.