Gap Analysis: Lester Electronics
The lifecycle of an organization, in an attempt to not only survive its current business state, but to improve its position in the marketplace, is riddled with strategic partnerships that influence potential merger and acquisition considerations. The scenario unfolds with four different companies that retain an interest in Lester Electronics. The identification of issues and opportunities paired with an analysis of all the stakeholders outlines the end-state goals for Lester Electronics. The gap between the existing state of the company and the vision of the organization highlight Lester Electronics’ challenges and the need to make substantial changes.
Issue and Opportunity Identification
The Lester Electronics scenario offers several issues and opportunities to improve the current business state. The first issue is Lester Electronics, a long-term partner of Shang-Wa, has been approached with a hostile takeover bid for vertical integration to secure raw materials. Transnational Electronics Corporation (TEC) showed interest in acquiring Shang-Wa to expand global growth opportunities. Shang-Wa understands that because TEC is a larger company, the bid could turn in to a hostile takeover if Shang-Wa does not cooperate. As a defensive technique, Shang-Wa has approached Lester Electronics with the opportunity that a partnership would benefit both companies.
Lester Electronics conducted research and found that a merger could be beneficial to the company, igniting additional potential problems with Shang-Wa because the proposal is for a partnership, rather than a merger. Additionally, an issue present in either scenario indicates that John Lin, Shang-Wa’s CEO, may not be ready to give up control of the company even though he has been thinking of retiring soon. As part of a merger with an internationally based company, the opportunity mandates that Lester Electronics do the research to find out how to...