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Problem Solution

Problem Solution: Lester Electronics
Lester Electronics, Inc. (LEI) and Shang-wa Electronics (SWE) joined together as business partners in 1978 (UoP, 2007). The business relationship has been successful during this time and each company has experienced significant growth. Recently both companies were approached by other organizations that displayed interest in merging, acquiring, or taking over the companies. Bernard Lester (Lester) and John Lin (Lin) have entertained the interest of the other companies and the LEI Board of Directors has made the decision to pursue a merger with SWE. This document addresses the scenario, risks LEI faces and an end-state vision that will find the organization learning from the pending merger, implementing a more effective financial strategy and positioned to continue as a leader in the electronics market. The immediate and long-term future is at stake for both LEI and SWE, not only for the companies and their employees but the principles as well.

Situation Analysis
Issue and Opportunity Identification
The situation presented in scenario one and two cause LEI and SWE to make strategic decisions that will affect the future effectiveness and success of the organizations (UoP, 2007). With each issue presented opportunities are considered that can lead the companies to more profitable futures. The synergy of the organizations has led to the impending merger of the organizations and projected success for the surviving business. The merger of LEI and SWE will require the merging of the two cultures while addressing several financial issues. The issues that present concern and interest for LEI revolve around financial distress created by the immediacy of reviewing and implementing the merger, capitalizing on cash and international conversion rates, and improving the leverage position of the companies in order to form defensive tactics to delay the aggressive bids from Transnational Electronics Corporation (TEC) and Avral Electronics...