Investment Alternative Benchmarking For Bernard Lester
Investment Alternative Benchmarking for Bernard Lester
University of Phoenix
MBA 540/Maximizing Shareholder’s Wealth
Instructor Joseph Lawless
Introduction - ()
“The income statement measures performance over a specific period of time, say, a
year,” (Ross, Westerfield, & Jaffe, 2005, p.14). In the Lester Electronics scenario, Lester,
Electronics, Inc. (LEI) has been presented with an opportunity to acquire or partner with
another company, Shang-Wa Electronics, with whom they have done business with for many
years. Shang-Wa has had an acquisition offer from another company, Transnational
Electronics Corporation and now must decide what the best move for them will be. LEI must
work quickly if they want to acquire with Shang-Wa. If they do not, they know that their revenues would decrease by a large amount. Ann Lorale, CFO for LEI, must look over the company’s income statement and decide if the acquisition would be a wise decision for the company.
Generic benchmarking has been performed to help see how different companies have reacted in similar situations, and whether or not this would be a good move for LEI. These companies have used strategies such as internal and external growth, cross border growth, working capital management, organizational performance with financial statements and ratios, and portfolio management. Through this benchmarking, these strategies will be explored.
Company Synopses
Cisco Systems, Inc.
Cisco Systems, Inc. is an international competitive industry in the technology market.
Internal growth that began with a single product of packing and routing internet protocol has
evolved into a diversified product that sees market demand worldwide. Expanding from a
single product to providing a full service internet networking product has pushed Cisco to the
top of Fortune’s...
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