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Running head: PROBLEM SOLUTION: LESTER ELECTRONICS
Problem Solution: Lester Electronics
Jennifer Chapman
University of Phoenix
Problem Solution: Lester Electronics
In 1978, Shang-wa Electronics, a small Korean manufacturer of capacitors, entered into an exclusive United States distribution contract with Bernard Lester, who then officially founded Lester Electronics, Inc. (LEI). As a consumer and industrial electronics parts master distributor, Lester markets its products to small- and medium-sized original equipment manufacturers (OEMs), repair facilities and small local distributors throughout the Americas and Europe. To date, however, Lester has never marketed domestic-made parts outside of the United States. Operating in this way, the company’s revenues approximate $500 million a year. In 1984, Bernard took his company public, and it is now traded on the NASDAQ market and rated Baa by a nationally recognized rating agency.
When deciding the future of a pre-existing company, hind sight is 20/20. It’s hard to know exactly how something may affect a company in the long run, but there are ways an organization could research all the possible problems that can arise, especially in specialized industries with many competitors. Recently, Lester Electronics and Shang-wa Electronics have had bids from their competitors to buy them out. As a result of current market trends there has been a decline in sales and the increasing competition has become more intense. Organizational strategic factors such as desire to increase innovation, recognize the value of long standing relationships, and reach new customers with new products have come into play. For Lester Electronics to succeed the ...