Running head: PROBLEM SOLUTION: LESTER ELECTRONICS
Problem Solution: Lester Electronics
MBA 540
November 3, 2008
University of Phoenix
Problem Solution: Lester Electronics
Lester Electronics, Inc. (LEI) is an industrial electronics component consumer and distributor that services primarily small to medium sized businesses in both US and Europe. LEI’s owner Bernard Lester entered in a sole distribution agreement with the owner of a small Korean manufacturer called Shang-wa, which is owned by John Lin, over 35 years. This agreement has been the main strategic advantage LEI has had within their market over this period of time. However, both LEI and Shang-wa are faced with new challenges due to rival competitors and their plans of expansion through acquisitions and possible takeovers. There are several directions that can be taken to resolve almost any problem, but choosing the best solution to a problem requires strategic analysis and understanding of the root causes. The following analysis will discuss both opportunities and issues that LEI faces as well as the stakeholders involved. The analysis will also cover alternative solutions along with what would be considered the optimal solution. Finally, this analysis will discuss the risks associated with the alternative solutions and implementation plans that must be followed in order to successfully implement organizational changes.
Situation Analysis
Issue and Opportunity Identification
Lester Electronics, Inc. (LEI) is facing inevitable change. Their long standing partnership with Shang-wa is in jeopardy by the proposed acquisition from TEC and their own acquisition proposal from Avral. There are several issues that LEI currently faces, but with these issues are opportunities which LEI can take full advantage of to propagate growth and expansion of their business. The first issue facing LEI is that TEC (Transnational Electronics Corporation) has proposed an acquisition offer...