Lawrence Sports-Gap Analysis

Lawrence Sports-Gap Analysis

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  • Date Submitted: 02/09/2009 2:13 PM
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Gap Analysis: Lester Electronics
Yvette Davis
University of Phoenix

Gap Analysis: Lester Electronics
The purpose of this paper is to discuss and identify the necessary risk involved in strategies for maximizing shareholder wealth by evaluating investment strategies on financial, economic, and global environments by measures of investment activities through organizational assessment and financial performance.
Lester Electronics, Inc. (LEI) is a United States consumer and electronics parts industry distributor that specialize in marketing electronics parts to original equipment manufacturers, repair facilities and local distributors domestically and internationally.
Aligning a corporate general partnership through an all exclusive supply agreement-renewed annually with Shang-wa, a Korean company who specialize in electronic capacitors, suggest that Lester Electronics has the benefit rights to sell Shang-wa capacitors within the United States for 65 years with a given minimum average purchase of $1 million wholesale.
According to Jaffe, Ross and Westerfield, Any two or more persons can get together and form a partnership. Partnership falls into two categories: general partnership and limited partnerships. In general partnerships, all partners agree to provide some fraction of the work and cash to share the profits and losses. A partnership agreement specifies the nature of the arrangement, (Jaffe, Ross & Westerfield, 2004).
To meet growth opportunities and wealth maximization and prevent a basic acquisition of Shang-wa from Transnational Electronics, Lester Electronics is strategically evaluating its position while determining internal investment techniques through basic forms of corporate finance by measures of long-term financing and financial/ratio analysis.
Analyzing risks in this scenario involves the removal of the exclusive supply agreement with Shang-wa...

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