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Running Head: INVESTMENT ALTERNATIVE BENCHMARKING
Investment Alternative Benchmarking
MBA540 – Graded A-
University of Phoenix
Professor Phil Speed
November 26, 2007
Investment Alternative Benchmarking
The global marketplace requires companies continuously to improve in order to remain competitive. One of the essential tools for continuous improvement is a company benchmarking analysis that focuses on some of these key elements: internal and external growth strategies, capital management to maximize shareholder wealth, cross-border growth strategies, and the allocation of resources. The Bernard Lester scenario provides an opportunity to create wealth maximization for a company called Lester Electronics Incorporated (LEI) this paper illustrates this by using other companies that accomplished this.
Lester Electronics Incorporated (LEI) is faced with the need to make huge decisions. The company is confronted with the opportunity to sell the corporation to one of the wealthy competitors in the industry. In addition, Lester also has the possibility to create a vertical merger with the company’s main supplier. If Bernard Lester, CEO and founder opts not to take action on either the acquisition or the merger, the company can be subjected to losing about 43% in revenues over the next five years. Lester has to consider some important strategies before making any decision. Such key strategies include growth, capital management and cross-border strategies. A useful aid in making these decisions can come from benchmarking other companies that have faced similar challenges. Analyze the previous experiences of companies like Sony, AT& T and American Express can assist Lester in making ...