Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts master distributor that commercializes its products to original equipment manufacturers. For to a greater extent years, Shang-wa Company has had an exclusive supply agreement with Lester electronics. Now, the CEO of Shang-wa is postulate to retire and has no formal succession plans for the follow?s management. At the same time, Shang-wa is world act for a coup detat by transnational Electronics Corporation (TEC). Lester Electronics and Shang-wa Electronics are both screwball oer the take over possibility. Lester is set to lose 43% of their revenues if they lose Shang-wa as a supplier. Lester Electronics is also being act for a possible takeover by Avral Electronics. After a great deal analysis, both Lester and Shang-wa agree that a nuclear fusion between the cardinal companies would be the best solution to carry on their relations and bout off takeover attempts by the cardinal other companies (University of Phoenix, 2007). Lester believes that a merger between the two companies would be the best guidance to increase their shareholder?s wealth. By merging, Lester leave behind instantaneously have a global front and should increase their market standing. However, there are several issues that Lester pull up stakes have to book of facts as a result of the merger. web site AnalysisIssue and Opportunity IdentificationLEI conclusion is to expand beyond its current core.

The environs currently adjoin their market creates a frame of challenges ranging from dirty takeovers to increased competition. In their current situation, if LEI does nothing they will lose upward of 45% of their expec ted revenue over the next louvre years. Thi! s lost would result from Shang-wa Electronics merging with Transnational Electronics Corporation. Additionally, LEI is being looked at by Avral Electronics, S. A., a company that manufactures equipment and components, for a merger. In evaluating the current issues that LEI faces, they have constitute a number of options... If you want to get a rich essay, order it on our website: OrderEssay.net

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