Lester Electronics Gap Analysis

Gap Analysis: Lester Electronics Lester Electronics has partnered with Shang-wa Electronics, a small manufacturer of capacitors for the late 35 years. Their partnership included an exclusive agreement for deliver and selling capacitors (University of Phoenix). Recently some addition opportunities have presented themselves to some(prenominal) Lester Electronics and Shang-wa Electronics which is requiring dickens companies to make some tough decisions. Until now, Lester has not marketed home(prenominal) made products external of the United States. Operating this way Lester Electronics for birth never pretend the type of harvest that ordain be needed to thrive in the industry.-wa Electronics have built a very solid relationship throughout the years. By coming together these two companies entrust be able to avoid takeovers and project the increment needs for their products. If Shag-wa is taken over by TEC Lester volition lose 43% of expected revenues ov er the next flipper dollar bill years (University of Phoenix). Bernard Lester of Lester Electronics and John Lin of Shang Merging with Shang-wa and expanding selling is a growth opportunity for Lester Electronics. “Many firms have growth opportunities, that is, opportunities to invest in profitable projects” (Roess, et el., p.18).

By taking receipts of the expertise and cognition from both companies Lester can go global, tuck the growing demand of their products, and become a front offset in their various(prenominal) industry. Situation Analysis Issue and Opportunity recognition The propo sed merger between Lester Electronics and Sh! ang-wa will bring to pass some issues that if addressed effectively will realize many opportunities for the new-made merged company. Because Lester and Shang-wa are two various types of businesses, the financial strategies of from each one company differ. Merging these two companies with different financial strategies create a risk to the organization and the shareholders. Lester internalization must assume long-term financing strategies and ensure...If you want to get a encompassing essay, order it on our website: OrderCustomPaper.com

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