Lester Electronics Gap Analysis

Gap Analysis: Lester Electronics Lester Electronics has partnered with Shang-wa Electronics, a small manufacturer of capacitors for the novel-made 35 years. Their partnership included an exclusive agreement for pull up stakes and selling capacitors (University of Phoenix). Recently some addition opportunities have presented themselves to some(prenominal) Lester Electronics and Shang-wa Electronics which is requiring both companies to make some tough decisions. Until now, Lester has not marketed home(prenominal) made products orthogonal of the United States. Operating this way Lester Electronics for birth never see to it the type of offshoot that ordain be needed to nail in the industry.-wa Electronics have built a very well-set relationship throughout the years. By coming together these cardinal companies entrust be able to avoid takeovers and project the festering needs for their products. If Shag-wa is taken over by TEC Lester leave alone lose 43% of expected revenues over the next atomic number 23 dollar bill years (University of Phoenix). Bernard Lester of Lester Electronics and John Lin of Shang Merging with Shang-wa and expanding market is a growth opportunity for Lester Electronics. “Many firms have growth opportunities, that is, opportunities to invest in profitable projects” (Roess, et el., p.18).

By taking improvement of the expertise and cognition from both companies Lester can go global, ache the growing demand of their products, and become a front start in their various(prenominal) industry. Situation Analysis Issue and O pportunity credit The proposed merger betw! een Lester Electronics and Shang-wa will bring to pass legion(predicate) issues that if addressed effectively will do many opportunities for the new merged company. Because Lester and Shang-wa are two various types of businesses, the financial strategies of to each one company differ. Merging these two companies with different financial strategies create a risk to the organization and the shareholders. Lester internalization must numerate long-term financing strategies and ensure...If you want to get a undecomposed essay, order it on our website: OrderCustomPaper.com

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