Investment Alternative Benchmarking for Bernard Lester
At the heart of the debate is whether LEI should align with Shang-wa Electronics to establish a new capacitor manufacturing facility in a neighboring Asian country, acquire Shang-wa outright, or sell the firm to Avral Electronics, Inc., (University of Phoenix, 2007). The issue translates into an opportunity to increase revenues through sources of synergy ? revenue enhancement, cost reduction, lower taxes, and lower cost of capital (Ross, Westerfield, & Jaffe, 2005). Clearly, the firm must study the options carefully and make a decision timely in order to maximize wealth for its shareholders.
Team A will address the issues of internal and external growth strategies, cross-border growth strategies, maximizing shareholders wealth, the impact of financial statements and ratio analysis, and portfolio management by benchmarking against 10 companies who have excelled during mergers and acquisitions and provide new insights for organizations that aspire to succeed in these areas. The selected companies are AT&T, John Deere & Company, Wendy's, Home Depot, Macy's, Harley-Davidson, Wal-Mart, Dell Computers, All-State Insurance, and State Farm Insurance. Lester Electronics must work diligently to come up with a solution that is best for organizational shareholders while considering a number of issues that must be addressed before the company can clearly identify an optimal solution.
Overall Analysis
Internal and External Growth Strategies
Growth strategy is usually based on investing in projects that allow an organizational to grow faster than its competitors. The benefits are usually in the form of capital gains. Internal strategies encompass such things as maximizing cash flows through cost r ...