Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts master distributor that commercializes its products to original equipment manufacturers. For more(prenominal) years, Shang-wa Company has had an exclusive supply agreement with Lester electronics. Now, the CEO of Shang-wa is esteem to retire and has no formal succession plans for the guild?s management. At the same time, Shang-wa is world act for a coup by transnational Electronics Corporation (TEC). Lester Electronics and Shang-wa Electronics are both pale all over 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 move for a possible takeover by Avral Electronics. After a great deal analysis, both Lester and Shang-wa agree that a spinal fusion between the cardinal companies would be the best solution to prevent their relations and bout off takeover attempts by the both 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 go out instantaneously have a global social movement and should increase their market standing. However, there are several issues that Lester go out have to book of facts as a result of the merger. view AnalysisIssue and Opportunity IdentificationLEI conclusion is to expand beyond its current core.

The milieu currently adjoin their market creates a frame of challenges ranging from opponent takeovers to increased competition. In their current situation, if LEI does nothing they will lose upward of 45% of their expected revenue over the ne xt louvre years. This lost would result fro! m 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 prepare a number of options... If you want to get a extensive essay, order it on our website: OrderEssay.net

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