Investment Alternative Benchmarking for Lester Electronics
University of Phoenix
Introduction
Mergers and acquisitions happen every day. Business deals are made to increase the company’s financial wealth. For large companies these decisions are made at the direction of the board and in small companies these decisions are made by the owners. Whether the decision is made by the board or the owner the goal is the same, increase market share and capital.
This paper will evaluate internal and external growth opportunities; describe working capital management strategies to maximize shareholder wealth; describe the challenges of cross-border growth strategies; assess organizational performance using financial statement and ratio analysis and describe the role of portfolio management in the allocation of corporate resources. The companies that were benchmarked cover thorough course concept are Kmart and Sears, Alcatel and Lucent, ATT and Cingular Wireless, Daimler and Chrysler, BMW, Oracle and PeopleSoft, XM and Sirius, and ExxonMobil.
Internal and External Growth Strategies
Lester Electronics is contemplating the acquisition of Shang-wa Electronics and this is a significant acquisition for Lester. This acquisition will prevent Shang-wa from depreciating by 45% in the upcoming five years. This acquisition will also prevent Lester’s competition, Transnational Electronics Corporation from acquiring Shang-wa. Lester must review companies like Daimler Chrysler to see the downside of growth strategies and review ATT and Cingular to see the positive side.
Lester must implement a business plan that will highlight the upside and downside of mergers and acquisitions if Lester wants to stay ahead of the competition. A wrong move could put Tr ...