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Abstract
The Lester Electronics scenario outlines two electronic companies that are experiencing issues of merging, joint ventures, acquisitions, partnership and financing. The following literature presents Bernard Lester, CEO and founder of Lester Electronics and John Lin, founder and CEO of Shang-wa Electronics. The Board of Directors for Lester Electronics has made the decision to allow a merger with Shang-wa. In order to complete the merger, the board of directors must consider assessing financing need for wealth maximization. Furthermore, integrating the culture between Lester Electronics and Shang-wa Electronics will be a delicate technique. In creating a dynamic mix, the joint venture can increase productivity and profitability. These facts set the stage then for the following analysis.
Gap Analysis: Lester Electronics
Merger’s, acquisitions, partnerships, and various combinations of company takeovers occur daily in today’s business arena. Understanding the responsibility of social and economic development, wealth, prosperity, and longevity begins with understanding the financing aspect of a business based on the consumer’s need. Bernard Lester, CEO and founder of Lester Electronics is currently entering into an Exclusive Supply Agreement with John Lin, founder and CEO of Shang-wa Electronics. Shang-wa Electronics manufactures capacitors which Lester exclusively has the right to sell the capacitors in the United States for 65 years (University of Phoenix Scenario, 2008). The annual agreement is up for renewal and now facing possible competitors.
The Board of Directors for Lester Electronics has made the decision to allow a merger with Shang-wa. In order to complete the merger, th ...