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Problem Solution: Lester Electronics
Lester Electronics Inc has made many decisions that will benefit the two companies. Based on the decision to merge with Shang-wa to maximize the potential and maximize the wealth of the two companies. The advantage is that the merger will allow each to capitalize on the strengths of the other while testing their weaknesses. In this paper it will explore the challenges, opportunities and the ethical dilemmas that Lester Electronics, Inc and Shang-Wa are experiencing during finding the right solutions for the companies.
Shang-wa Electronics was doing business for Bernard Lester, they manufacture 40% of Lester Electronics, Inc. products and establish a relationship. This company entered into an exclusive United States distribution contract with Bernard Lester, who then officially founded Lester Electronics, Inc (LEI). LEI grew rapidly as Lester added additional components to its product line, and made inroads with two large domestic manufacturers that use capacitors in both consumer and industrial products.
In the consumer industry there are many avenues that the distributor can take advantage of. Lester markets its products to small and medium sized original equipment manufacturers (OEMs). For repair they offer facilities and small local distributors throughout the Americas and Europe. Lester has never marketed domestic made parts outside of the United States. Operating in this way, the companies' revenues approximate $500 million a year. Bernard Lester has come longs way to make his company public in 1984 and now it's traded on NASDAQ market. In the other hand, Shang-wa CEO John Lin began manufacturing capacitors in 1969, building a small, well-respected business i ...