Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts secure distributor that commercializes its products to original equipment manufacturers. For more(prenominal) years, Shang-wa Company has had an exclusive go forth agreement with Lester electronics. Now, the CEO of Shang-wa is gaze to retire and has no full moon-dress succession plans for the fellowship?s management. At the same time, Shang-wa is land act for a putsch by international Electronics mickle (TEC). Lester Electronics and Shang-wa Electronics are both(prenominal) roll all everyplace 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 engage for a possible coup detat by Avral Electronics. After a great deal analysis, both Lester and Shang-wa agree that a jointure between the cardinal companies would be the best solution to curb their relations and bout despatch takeover attempts by the twain other companies (University of Phoenix, 2007). Lester believes that a nuclear fusion between the two companies would be the best guidance to growth their shareholder?s wealth. By merging, Lester entrust instantaneously possess a global charge and should increase their market place standing. However, at that place are several issues that Lester go away have to book of facts as a result of the merger. smear AnalysisIssue and Opportunity IdentificationLEI conclusion is to reach out beyond its genuine core.

The milieu receivedly adjoin their market creates a frame of challenges ranging from antipathetic takeovers to increased competition. In their current situation, if LEI does nothing they will lose upward of 45% of their expected revenue over the next louvre years. This woolly-headed 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 form a number of options... If you lack to get a full essay, order it on our website: Ordercustompaper.com

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