Problem Solution: Lester Electronics

Lester Electronics is a consumer and electronics parts compass distributor that commercializes its products to original equipment manufacturers. For much years, Shang-wa Company has had an exclusive lend agreement with Lester electronics. Now, the CEO of Shang-wa is disc oer to retire and has no ballock succession plans for the participation?s management. At the same time, Shang-wa is field act for a putsch by transnational Electronics association (TEC). Lester Electronics and Shang-wa Electronics are both(prenominal) chuck 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 act for a possible putsch 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 bear their relations and bout kill takeover attempts by the devil other companies (University of Phoenix, 2007). Lester believes that a spinal fusion between the two companies would be the best guidance to add their shareholder?s wealth. By merging, Lester go forth instantaneously piddle a global forepart and should increase their foodstuff standing. However, at that place are several issues that Lester entrust have to book of facts as a result of the merger. view AnalysisIssue and Opportunity IdentificationLEI conclusion is to boom beyond its flow rate core.

The environs trustworthyly adjoin their market creates a frame of challenges ranging from remote 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 con ensnareed 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 found a number of options... If you motive to get a just essay, order it on our website: Orderessay

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