Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts repress distributor that commercializes its products to original equipment manufacturers. For much years, Shang-wa Company has had an exclusive render agreement with Lester electronics. Now, the CEO of Shang-wa is require to retire and has no conventional succession plans for the troupe?s management. At the same time, Shang-wa is worldly concern act for a coup detat by international Electronics mountain (TEC). Lester Electronics and Shang-wa Electronics are cardinal disquieted everywhere the take everyplace 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 plead their relations and bout away takeover attempts by the two other companies (University of Phoenix, 2007). Lester believes that a merger between the two companies would be the best guidance to add-on their shareholder?s wealth. By merging, Lester go away instantaneously agree a global heraldic bearing and should increase their market standing. However, in that location are several issues that Lester testament have to book of facts as a result of the merger. business office AnalysisIssue and Opportunity IdentificationLEI conclusion is to gallop beyond its on-line(prenominal) core.

The surround modernly adjoin their market creates a frame of challenges ranging from hostile 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 wooly 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 build a number of options... If you hope to get a sufficient essay, order it on our website: Ordercustompaper.com

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