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Lester Electronic

Running head: PROBLEM SOLUTION: LESTER ELECTRONICS

Problem Solution: Lester Electronics
Dannie Bridges
University of Phoenix
Problem Solution: Lester Electronics
Lester Electronics, Inc. is a business organization that has been operating in the consumer and industrial electronics market since 1978. “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)” (University of Phoenix, 2008, Scenario 1). The electronics company has been in a high position in its market leading the industry with its ability to manage shareholders wealth and company financials. The company now has issues and opportunities surrounding its recent plan to avoid losing its longtime relationship with its main capacitor supplier Shang-wa electronics. It is because of the Shang-wa company that LEI has come as far as it has in the electronics market today. “LEI grew rapidly as Bernard added additional components to its product line, and made inroads with two large domestic manufacturers that use capacitors in both consumer and industrial products” (University of Phoenix, 2008, Scenario 1).
In the process of analyzing alternatives to the situation, a few major concerns have arisen in the electronics company. The company stands to lose a great deal of their sales if they lose the relationship with Shang-wa and LEI is also being approached for a buyout opportunity. For the company to realize its goals, it will need to go through a systematic process of properly evaluating its financial opportunities and get every stakeholder in their right place. In order for the company to get in a position to increase the wealth of its shareholders and keep the sales it will potentially loose, it will have to focus all its resources into crunching the financials for all the possibilities it has at hand and decide if a...