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Submitted by jenisethomas on July 5, 2008
Category: Business
Words: 3424 | Pages: 14
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Running head: PROBLEM SOLUTION: LESTER ELECTRONICS
Problem Solution: Lester Electronics
University of Phoenix
Problem Solution: Lester Electronics
Building relationships is often the key to increasing business productivity. Long-term company relationships can lead to cost effective manufacturing, productive servicing techniques and increase global revenues. Lester Electronics, Inc. (LEI) began an industrious relationship with a Korean manufacturer, Shang-wa Electronics. Together since 1978, the two companies have made major progress in delivering a product line to domestic consumers. LEI focus its delivery model to small and medium size original equipment manufactures. Shang-wa Electronics manufactures capacitors which Lester exclusively has the right to sell the capacitors in the United States for 65 years (University of Phoenix Scenario, 2008). Chief Executive Officers (CEO) of both Shang-wa and Lester Electronics are now faced with dilemma of a changing industrial environment. Competition has grown and decisions must be made for both companies as to which direction the corporation is headed.
Situation Analysis
Issue and Opportunity Identification
LEI have proven to be a grounded company bringing in $500 million dollars in revenue. Similar companies are looked upon as a growth opportunity for other companies. Avral Electronics, S.A. recognizes the importance of what LEI bring to the industrial community. Acquiring LEI would accomplish this need and take the company to new a dimension. Lester Electronics growth and stamina in the industrial community has been built around an exclusive relationship with Shang-wa and ignoring this factor can be detrimental to the continue success of LEI. Jon Lin the founder of Shang-wa now sits as a visiting board member at Lester Electronics. Continue growth at Lester is depended upon the continued relationship with Shang-wa. If Avral is to pursue...
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