Problem Solution: Lester Electronics
Lester Electronics is an industrial electronics distributor that markets product to small and medium sized OEM companies throughout the United States. Due to the changing global market and increased competition Lester Electronics has to find a way to maximize the organizations revenue in order to stay competitive. Lester Electronics is faced with a few issues such as not being familiar with marketing the organizations domestic-made products outside of the United States, possibility of being acquired by Avral Electronics, and the loss of revenue due to Shang-wa possibly being acquired by Transnational Electronics. In order to alleviate these issues, the CEO of Lester Electronics will have to make decisions that will be in the best interest of the organization in addition to the shareholders. The gap analysis will address the issues and opportunities, the stakeholder’s perspectives, and the end-state goals in order to help management maximize the firm’s wealth.
Situation Analysis
Issue and Opportunity Identification
Lester Electronics has a great deal of decisions to make in regard to maximizing the organizations wealth. If wealth and revenue is not increased, the organization can be faced with some detrimental issues. If wealth and revenue is increased, then the organization can bring about many opportunities. The issues that are currently plaguing Lester Electronics in the scenario are:
1. Lester Electronics is not familiar with marketing the organizations domestic-made products outside of the United States
2. Lester Electronics could possibly be acquired by Avral Electronics,
3. Lester Electronics could lose revenue due to Shang-wa possibly being acquired by Transnational Electronics
The first issue is Lester Electronics is not familiar with marketing its product outside the United States. To resolve this issue, Lester Electronics can go into partnership with Shang-wa in order to gain...