The chosen acquisition target is Retractable Technologies, a company that specializes in manufacturing automated medical devices with retraction technology for healthcare services. The company is currently undergoing a stage of rapid growth, with all fiends in the healthcare industry experiencing an influx of capital after the COVID-19 pandemic. Retractable Technologies’ risk management now primarily focuses on managing the supply chain as well as manufacturing costs and maintaining patent protection. In defining whether Retractable Technologies’ risk-mitigation strategy is sufficient, I would suggest that the company currently effectively manages internal risk factors. Furthermore, the company’s main function is manufacturing and providing devices for healthcare organizations. Judging by the financial success of the company, with $151.7 million in revenue, one can say that the company utilizes an effective strategy in communication with suppliers and clients (Murphy and Tucker, 2022). However, it is unknown whether the company, highly dependent on demand for products and suppliers, is capable of effective risk-responsive management.
The importance of the company’s products for COVID-19 vaccination supported the company’s close cooperation with the government. However, the close cooperation also caused the company to implement more strict product requirements and an early expansion strategy (Business Wire, 2021). The implementation of an expansion strategy for the company resulted in staff reduction, which negatively affected the company’s production and operation (Business Wire, 2021). I would implement an additional employee risk management strategy to ensure that the expansion will not affect the safety of production workers. Furthermore, I would compose an additional risk management strategy with a risk-responsive approach to ensure that the company is more prepared for the risks of the external environment, such as pressure from competitors or suppliers.
References
Business Wire. (2022). Retractable Technologies, Inc. announces reduction in workforce.
Murphy, A., & Tucker, H. (2021). America’s best small companies. Forbes.