Situation Analysis And Problem Statement: Lester Electronics Incorporated And Shang-Wa Electronics
SITUATION ANALYSIS AND PROBLEM STATEMENT: LESTER ELECTRONICS INCORPORATED AND SHANG-WA ELECTRONICS
Situation Analysis and Problem Statement: LESTER ELECTRONICS, INC. AND SHANG-WA ELECTRONICS
David Smith
University of Phoenix
Situation Analysis and Problem Statement
The purpose of my paper is to analysis the issues related to Lester Electronics Incorporated and Shang-Wa Electronics, and why Lester Electronics, Inc. should look at their situation and options regarding the takeover by Avral Electronics, S.A. and Shang-Wa do the same regarding the hostile takeover by Transnational Electronics Corporation. Lester Electronics, Inc. and Shang-Wa's issues are related to the financial history of the corporations and the John Lin wanting to retire, which led into the current problem of other corporations wanting to take over the companies. First, to understand the problem, one needs to understand the situation surrounding these two companies.
Situation Background (Step 1)
Lester Electronics, Inc. Entered into an exclusive U.S. distrubition contract with Shang-Wa Electronics, a small Korean manufacturer of capacitors in 1978. The agreement and relationship has stood valiantly for 35 years, however now John Lin, the Shang-Wa founder is looking at a hostile takeover by Transnational Electronics Corporation. Ironically, Avral Electronics, S.A. is trying to takeover Lester Electronics, Inc. Both companies have done well for years, but want to access their future and ability to survive a takeover. But first, they need to identify the issues and opportunities.
Issue Identification
There are two issues facing Lester Electronics, Inc. First, Shang-Wa, who provides more than 40% of the company's product, is facing a hostile takeover. What happens to Shang-Wa will affect Lester Electronics, Inc. The second issue is the attempted
takeover by Avral Electronics, S.A.
There are two...
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