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SITUATION ANALYSIS AND PROBLEM STATEMENT: LESTER ELECTRONICS INCORPORATED
Situation Analysis and Problem Statement: Lester Electronics Incorporated
March 7, 2006
MBA/540 Maximizing Shareholders Wealth
Robert Woerner / Phoenix Dallas Main
Situation Analysis and Problem Statement
The purpose of this paper is to analysis the issues related to Lester Electronics Incorporated. Lester Electronics, Inc. should look at their situation and options regarding the takeover by Avral Electronics, S.A. and Shang-Wa do the same regarding the hostile takeover by Transnational Electronics Corporation. Lester Electronics, Inc. and Shang-Wa's issues are related to the financial history of the corporations and the John Lin wanting to retire, which led into the current problem of other corporations wanting to take over the companies. First, to understand the problem, one needs to understand the situation surrounding these two companies.
Situation Background (Step 1)
Lester Electronics, Inc. entered into an exclusive U.S. distribution contract with Shang-Wa Electronics, a small Korean manufacturer of capacitors in 1978. The agreement and relationship has stood valiantly for 35 years, however now John Lin, the Shang-Wa founder is looking at a hostile takeover by Transnational Electronics Corporation. Ironically, Avral Electronics, S.A. is trying to takeover Lester Electronics, Inc. Both companies have done well for years, but want to access their future and ability to survive a takeover. But first, they need to identify the issues and opportunities.
Issue Identification
There are two issues facing Lester Electron ...