Submitted by dede on October 16, 2007

• Category: Business
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Problem Solution: Lester Electronics

Problem Solution: Lester Electronics
Lester Electronics Inc. (LEI) is an electronic parts distributor that markets it products to equipment manufacturers. For the past 35 years Shang-wa Electrics and LEI have had an exclusive supply agreement. Recently, CEO of Shang-wa John Lin has been deliberating retirement but has no future successor to take his place. In addition, Shang-wa has been pursued by Transnational Electronics Corp. (TEC) for a takeover. At the same time LEI is also facing a possible takeover by Avral Electronics.
After evaluating each company’s position and facts that LEI will be losing 43% of their revenues over the next five year if Shang-wa is lost as a...

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