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MBA540WK4 Gap Analysis: Lester Electronics In the Lester Electronics Scenario, there are several things going on at once. Shang-Wa had already suggested a partnership
Submitted by mel1981 on February 13, 2007
Category: Business
Words: 1262 | Pages: 6
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Gap Analysis: Lester Electronics
In the Lester Electronics Scenario, there are several things going on at once. Shang-Wa had already suggested a partnership to Lester Electronics, but this is now becoming more urgent due to a hostile takeover bid by TEC. In fear of losing
his company, John Lin, the CEO and founder of Shang-Wa, approaches Bernard Lester, CEO of Lester Electronics with a serious proposal to form and partnership and expand the business in to a neighboring Asian country. Lester Electronics however, has to decide whether a partnership is the best way to go, or if acquiring Shang-Wa outright would be more beneficial. This paper will go over any issues and opportunities associated with this scenario.
Situation Analysis
Issue and Opportunity Identification
The Lester Electronics Scenario has potential for several issues and opportunities. The first issue is that Shang-Wa has been approached with a hostile takeover bid. TEC showed its interest in acquiring Shang-Wa to expand their global growth opportunities. Shang-Wa knows that due to the size of the TEC as a company, this could turn in to a hostile takeover is they do not cooperate. As part of their defensive technique, Shang-Wa has approached Lester Electronics with the idea that a partnership would benefit both companies. Lester Electronics has done the research and found that a merger would be more beneficial to the company. This could cause some possible problems with Shang-Wa because their proposal was for a partnership, not a merger. John Lin, Shang-Wa's CEO may not be ready to give up his company just yet, even though he has been thinking of retiring soon. As part of a merge with an internationally based company, Lester Electronics will also have to do the research to find out how to best deal with operational exposures, such as exchange rate fluctuations.
Stakeholder Perspectives/Ethical Dilemmas
There are several ethical...
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