Lester Electronics Benchmarking
Running head: LESTER BENCHMARKING
Lester Benchmarking
Erik Spychalski, Jesse Nuebert, Anthony Urban
MBA 540 Maximizing Shareholder Wealth
University of Phoenix
Daniel Roth
May 6, 2008
Lester Benchmarking
Introduction
Lester Electronics, Inc. (LEI), owned by Bernard Lester, began with an agreement with John Lin, CEO of Shang-Wa a specialty capacitor manufacturer in Korea. “LEI grew rapidly as Bernard added additional components to its product line, and made inroads with two large domestic manufacturers that use capacitors in both consumer and industrial products.” (University of Phoenix, (n.d.) a, pp 1) With this explosive expansion and the global market the access other companies have puts LEI in possible jeopardy of takeover by Avral Electronics, S.A. Avral Electronics, S.A. is an electronic equipment and component parts manufacturer headquartered in Paris with manufacturing facilities in Ireland, France and three Asian nations. (University of Phoenix, (n.d.) a, pp 1) Transnational Electronics Corporation (TEC) is a large manufacturer and distributor of electronics components that has grown through recent mergers and acquisitions enough to expand globally. (University of Phoenix, (n.d.) a, pp 1) “TEC has recognized the growing domestic demand for the specialty capacitors that Shang-Wa manufactures.” (University of Phoenix, (n.d.) a, pp 1) Shang-Wa has also grown over the years and is in the same position with TEC looking to purchase Shang-Wa. With the original agreement that Lester and Lin had being compromised from both companies because larger companies are looking to buy them a decision needs to be made as to what the companies will do, either let the agreement lapse and have the two companies be brought out or go into a merger of the two companies.
With this situation in mind, some of the opportunities that are available to LEI and Shang-Wa are growth, takeovers,...
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