Lester Electronics

Bernard Lester is the founder of Lester Electronics Inc. ( coronal). The LEI is the distributor of capacitors which are manufacture by Shang-Wa electronics, a Korean company. As an electronic parts tell distributor LEI market its products to small and medium come along original equipment producers, small distributors throughout America and Europe. Operating in this mode, the companys revenue approximates $500 million a year. In 1984, Bernard took his company to public. Shang-Wa is a well respected Korean company that produces capacitors. Shang-Wa granted LEI exclusive rights to trade in Shang-Wa capacitors in US, as long as LEI champion a minimum purchase of $1 million wholesale. In recidivate Shang-Wa cant involve in furrow with anyone who intends to sell in US markets. Situation Analysis fare and Opportunity Identification any pots important goal is to maximize the wealthiness of the shareholders and thereby maximize the corporations wealth. For this reason separately firm needs to engage financial managers. Financial managers should recurrence decisions that make up the value of the share, and to increase the market value of the equity. Indeed, the maximization of the wealth of the firm and shareholders is the main(prenominal) concern when executives take decisions.

international Electronics (TEC) is a large manufacturer and distributor of electronic components is on the rise. With mergers and acquisitions, the company developed profuse resources to expand globally. TEC accepted Shang-Was capacitors demand and offered an acquisition. If this acquisition happens, the contract betw! een LEI and Shang-Wa whitethorn not be re cleaned. In such a case, LEI may lose 43% of its revenue everywhere next cardinal years. Bernard obviously is concerned about the situation. whoremaster Lin the CEO of Shang-Wa is persuasion about his retirement and looking for a good successor. He recently, informally, suggested to Bernard that they partner to establish a new firm in an Asian country in tack together to...If you postulate to get a full essay, order it on our website: OrderCustomPaper.com

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