Problem Solution: Lester Electronics, Inc MBA 540 week 6

Introduction:Lester Electronics, Inc., is a scattering association in the joined States, and has a deoxidise with Shang-wa Electronics, a Korean producer of capacitors. Shang-wa has been in trade since 1969, and has been a small successful business from the beginning. nether the contract, which moldiness be regenerate annually, Shang-wa granted, Lester the exclusive right to take capacitors in the United States for 65 years, as long as Lester well-kept a minimum annual purchase of $1 meg wholesale; as result, Shang-wa is Lester?s primary provider of capacitors for the U.S. market place. In exchange, Shang-wa cannot knowingly sell its capacitors to anyone intending to market to U.S. buyers. Lester added additional components to its point of intersection line. Shang-wa?s capacitors are well known in the U.S. market that is wherefore Transnational Electronics Corporation, a macroscopic manufacturer and distributor of electronics components wants to achieve Shang-wa. On the other hand, Avral Electronics equipment and component parts manufacturer headquartered in Paris wants to acquire Lester, because they want to market their harvest-home in the U.S. market (UOP, 2007). This new acquisition could cost swage between Lester and Shang-wa agreement and for morale. Situation AnalysisIssue and Opportunity IdentificationLester Electronics, Inc. is a distribution company in the United States, and they have a contract with Shang-wa Electronics, which is a Korean manufacturer of capacitors.

Under this contract which is renewed annually, Shang-wa is Lester?s primary supplier of capacitors for th e U. S. market. Lester?s revenues are near ! $ five hundred million a year. The next know is that Transnational Electronics is arouse in a hostile take-over of Shang-wa, if this happens it would taut a large drop of 43% of the revenue for Lester?s Electronics. This would result in financial distress for Lester?s and could done them into bankruptcy. By merge the two companies they will be satisfactory to build... If you want to lower a full essay, order it on our website: OrderCustomPaper.com

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