Gap Analysis: Lester Electronics
In the following Gap analysis, I will discuss a brief history of Lester Electronics, Inc. and Shang-wa Electronics. I will then follow that section with an issues and opportunities section in which I will go in to details of the project. Furthermore, I will discuss the stakeholders and their rights pertaining to the scenario. There are three major stakeholders in which each has a lot to gain from. Following the stakeholder perspectives, I will go in to the end-state vision for Lester Electronics. I will discuss the implementation and timeline in which Lester Electronics will perform their functions. Furthermore, I will go into the challenges and opportunities faced by Lester Electronics and conclude with a solution to tie things together.
Issue and Opportunity Identification
Lester Electronics and Shang-wa Electronics have been business partners for over 35 years in which the leaders have become friends. Lester Electronics markets its products to small and medium sized original equipment manufacturers, repair facilities and small local distributors throughout the Americas and Europe. Lester Electronics owns exclusive rights to a small Korean manufacturer of capacitors, Shang-wa Electronics. Lester Electronics current revenues approximate $500 million a year. The contract between the two stated that Shang-wa granted, Lester the exclusive right to sell Shang-wa capacitors in the United States for 65 years, as long as Lester maintained a minimum annual purchase of $1 million wholesale. In return, Shang-wa cannot knowingly sell its capacitors to anyone intending to market to U.S. buyers.
Recent increases of demand in the market have brought on increased competition. Transnational Electronics Corporation has enough resources through mergers and acquisitions to expand their operations globally. In order to do so, Transnational Electronics Corporation needs the capacitors that are manufactured by Shang-wa. The CEO...