Problem Solution: LESTER ELECTRONICS.
In the University of Phoenix scenario, Lester Electronics Inc. (LEI) is currently ranked third among capacitor manufacturers. LEI is a master distributor of electronics parts to the consumer and industrial small and medium sized original equipment manufacturers, repair facilities and small local distributors throughout the Americas and Europe (University of Phoenix, 2008). Lester was looked at in depth to find current problems and gaps that could keep the company from achieving its goals. LEI is faced with the decision to align with Shang-wa Electronics to establish a new capacitor manufacturing facility in Asia, acquire or sell the firm to Avral Electronics, Inc., (University of Phoenix, 2007). The Board of Directors has granted, approval to move forward with the merger with Shang-wa. These issues create an opportunity for LEI to scan the external environment and look for other companies who have faced similar issues. LEI must study the options carefully and make a decision timely in order to maximize wealth for its shareholders. This paper will give LEI a blue print through financial analysis of its current situation versus its desire situation also the purpose of the paper is to determine the optimal financial solution that maximizes current and future wealth of company.
Lester Electronics, Inc. is facing with multiple financial issues that must be resolve in order for the merger to be successful. Before the merge can go through and be successful Lester must analyze several financing options to fund the merger. This process will include (1) an identification of the firm's financial goals, (2) an analysis of the differences between these goals and the current financial status of the firm, and (3) a statement of the actions needed for the firm to achieve its financial goals. (Ross, Westerfield, & Jaffe, 2005).