Lester Electronics Benchmark
Lester Electronics Benchmark
MBA 540
November 27, 2007
University of Phoenix Online
Lester Electronics Benchmark
Lester Electronics is at a pivotal point of the business. Bernard Lester cannot continue to manage the business as has previously been done due to the changes in the industry and a possible loss of their largest vendor, Shang-wa. John Lin, founder and CEO of Shang-wa, is looking to spend less time with his business and more time with his family. John Lin has informally suggested to Bernard that they partner in a new country that would enable both companies to meet the growing demands for their products. John Lin also feels pressured to sell to another manufacture, Transnational Electronics Corporation (TEC). If Shang-wa does not sell or enter into a joint venture with Lester, Shang-wa will not continue to remain in business because John Lin has not groomed a successor. Lester also feels pressured by Avral Electronics, S.A. to sell the business. Lester must make the decision to either sell or partner with Shang-wa so that they are not forced out of business. Lester's proposal to create a joint venture with Shang-wa may be the only option that would allow both companies to stay in business. Both companies are faced with aging presidents and must put together succession plans if they do choose the joint venture option.
Benchmarking companies
Beckman Inc. and Coulter Electronics
One of the companies that Lester can look at is Coulter Electronics. The success of Coulter electronics came from the manufacturing of a medical instrument that counted white and red blood cells. The company had been successful from the early 1950s through the 1980s selling hematology analyzers and patent rights. The company felt the pressure of competition in the 1980s as their patents began to expire. Coulter responded to the competition by leading the market in technological advances and supporting the world...
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