Operating at revenues close to $500 million, Lester Electronics, Inc. (LEI) faces circumstances which potentially consist of joint vetures, mergers, acquisitions, and exclusive distribution agreements between LEI, and Shang-wa Electronics, Transnational Electronics Corporation (TEC), and Avral Electronics (Apollo Group, 2006).
Benchmarking other companies with similar circumstances can provide compelling support to business decisions based on investment opportunities. The companies benchmarked to help in determining investment alternatives for LEI are AT& T, Wal-Mart, Gillette, Procter & Gamble, Adobe, XM Radio, Walt Disney and more. Each company has contributed relevant, real world scenarios that reflect the financial strategies and outcomes used in the LEI scenario including internal and external growth, cross-border strategies, working capital, financial statements, and portfolio management.
Internal and External Growth
In any business there always exists opportunities to grow both internally and externally. Together they must be equally emphasized. To start, a firm assesses its central approach and the related business model or plan. Reviewing all elements that exist internally and externally provides a business with a map and important elements that make a business successful. Growth strategies are designed to help a business reach maximum shareholder wealth.
While Lester is reviewing its overall valuation to determine how to move forward with a impending corporate merger as well modifications with its vendor portfolio, the reorganization of Lester’s business activities could increase efficiency and expand its market by taking advantage of its strong points. Similar to LEI, Walt Disney Inc. has dealt with the importance of key changes in product offering and the need to strategically to increase its company performance to endure against other...