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Introduction
Lester Electronics a small consumer and industrial electronics parts master distributor working in the United States was hit with the idea of losing there key supplier in Shang-wa an electrical capacitor manufacturer to rival Transnational Electronics a large manufacturer and distributor of electronic components company. Lester Electronics has seen Transnational Electronics grow its business lately through mergers and acquisitions and has now decided that Shang-wa fits well into the company’s long-range business plan. If Transnational Electronics were able to acquire Shang-wa, the acquisition would cut approximately 43% of Lester Electronics revenue thus forcing Lester Electronics to look for external investments to forge against a successful bid by Transnational. The board of directors decided to beat Transnational Electronics to the punch and acquire Shang-wa electronics themselves. The board believes strongly that combining with Shang-wa will forge against any loss of revenue and will overall be successful.
FedEx and Kinko’s
In 2004 FedEx, acquired Kinko’s a privately held document printing and coping business for 2.4 billion dollars combining the strength and logistic experience of FedEx with Kinko’s small business service model. (Gross, 2004) believes that this acquisition was a “timely response to the long-term decline in FedEx’s primary lines of business and also represents an attempt t ...