Gap Analysis: Lester Electronics
Lester Electronics and its CEO’s have an extremely important decision that needs to be made that is crucial to the future of its company as a few other companies. The decision can impact competitors and give Lester the advantage in a very competitive race for leader in their realm. Lester’s main supplier, Shang-wa, CEO is ready for retirement in the soon future. John Lin is eager to spend more time with his family and is interested in selling his company to Lester but there is another offer on the table as well from TEC. Both companies have very tough decisions to make and it could impact are large portion of the industry. Both Bernard and John have a great relationship built up and both companies hope that the friendship will be the seal on the upcoming deal. When this acquisition occurs both companies will be financially stable for many years to come.
Overall, the best possible solution would be for Lester to acquire Shang-wa and to partner with Avral Electronics. By using Avral to distribute both Lester and Shang-wa products globally it will give all three companies future financial assurance for progress and profit. This decision will also increase the industry percentage that Avral will control within the next fiscal year. The increased business will show competitors that Avral/Lester/Shang-wa are key cogs in the electronics industry. Bernard will also be at ease knowing that the shareholders and associates will be in stable positions for many years to come as well as John Lin being able to retire knowing his company is in great hands.
Issue and Opportunity Identification
First, the risks with Avral partnering with Lester/Shang-wa are not very likely but could occur in the future. By partnering with both of these companies Avral opens itself up for the possibility of loss in demand for the products. The rapid changes of technology always seems to find a faster more efficient way to make multiple...