Submitted by Lanie333 on September 29, 2007
Lester Electronics, Inc. (LEI) is in a challenging position. There is a chance of losing a long-term exclusive distributorship with Shang-wa if Shang-wa is taken over by Transitional Electronics Corporation or LEI is taken over by Avral Electronics. LEI can enter into a partnership with Shang-wa and build a manufacturing facility in Asia or find another distributor in order to survive in a competitive global environment.
While a merger, acquisition or joint venture can be an attractive option, LEI must consider if the risk of foreign venture will ensure a positive return and maximize shareholder’s wealth. In order to plan for a positive outcome, LEI must understand the role of...
You must Login to view the entire paper.
If you are not a member yet, Sign Up for free!