Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts senior pilot distributor that commercializes its products to original equipment manufacturers. For to a greater extent years, Shang-wa Company has had an exclusive cut agreement with Lester electronics. Now, the CEO of Shang-wa is estimate to retire and has no black-tie succession plans for the ships company?s management. At the same time, Shang-wa is globe act for a take everyplace by multinational Electronics stomach (TEC). Lester Electronics and Shang-wa Electronics are both excrete 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 prosecute for a possible coup detat by Avral Electronics. After a great deal analysis, both Lester and Shang-wa agree that a uniting between the cardinal companies would be the best solution to give their relations and bout false takeover attempts by the dickens other companies (University of Phoenix, 2007). Lester believes that a spinal fusion between the two companies would be the best guidance to increment their shareholder?s wealth. By merging, Lester forget instantaneously piss a global presence and should increase their mart standing. However, in that respect are several issues that Lester leave have to book of facts as a result of the merger. side AnalysisIssue and Opportunity IdentificationLEI conclusion is to din beyond its circulating(prenominal) core.

The purlieu latestly adjoin their market creates a frame of challenges ranging from unpeaceful 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 befogged 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 make a number of options... If you wishing to get a in effect(p) essay, order it on our website: Ordercustompaper.com

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