Problem Solution: Lester Electronics
University of Phoenix
Problem Solution: Lester Electronics
Lester Electronics is a national company who is currently experiencing a possible merger. A new era has brought new challenges for the technology industry and Lester Electronics is not the exception. Their main interest is to keep competitive and increase revenues worldwide. The company is clear to face challenges and resistance when implementing dramatic changes such as a merger and other aggressive strategies. Lester Electronics seeks to face new challenges on improving sales by merging with Shang-Wa Electronics and be a global company. The company’s goal is to remain competitive in the industry, providing the best services and products. Besides, the board of directors has to consider assessing financing require for wealth maximization for a successful merger.
Situation Analysis
Issue and Opportunity Identification
Lester Electronics recognizes that the technology industry is changing rapidly. Now, the firm must overlook for alternatives in order to remain competitive, nationally and globally. Lester Board of Directors has approved a plan to merge with Shang-Wa Electronics. The main objective of this plan is to growth in the market and creates alliances with new products, services and customers. For Lester Electronics it is imperative to retain the alliance and supply from the current suppliers. However, it is essential for LEI’s Board of Directors to create a financial plan to maximize shareholders wealth and identify the most optimal alternatives in order to succeed in the merger process.
In the end, it is important to identify the different issues and opportunity both companies have in order to overpass successfully the merger.
If Lester Electronics decides not to merge with Shang-Wa, can decrease sales causing a major failure, which gives competitors the opportunity to acquire the company. Lester Electronics has the opportunity to...