Running head: BERNARD LESTER BENCHMARKING
Introduction
Lester has never marketed domestic-made parts outside of the United States. Lester’s partner John Lin has informally suggested that Shang-wa is open to growth opportunities that could position the company to meet growing demands. Keep in mind that Lester and John have been business partners and friends for over 35 years. They have a contract that grants Lester the right to sell Shang-wa Capacitors in the United States for 65 years as long as Lester maintains a minimum annual purchase of $1 million wholesale. Financial Planning establishes guidelines for change in the firm (Ross, et. al., 2005). These guidelines should include 1) an identification of the firms financial goals, 2) an analysis is of the difference’s between these goals and the current financial status of the firm, and 3) a statement of the actions needed for the firm to achieve its financial goals (Ross, et. al., 2005).
Issues
With Transitional Electronics Corporation (TEC) on the rise and finally developing enough resources to expand globally, CEO David Antone has an interest in acquiring Shang-wa. If TEC was to acquire Shang-wa the long standing Lester and Shang-wa exclusive distributorship agreement would most likely not be renewed at the end of years end (University of Phoenix Scenario, 2007); creating a 43 percent reduction in Lester’s revenue over the next five years. Knowing all this Lester has to plan out his outcome. John Lin plans to retire and wants to do what’s best for his partnership with Lester, but at the same time he wants to make sure he leaves Shang-wa in good hands. The decision for the business move will depend on what Anne Lorale, Chief financial Officer of Lester Electronics results in completing the analyses for ...