Lester Electronics - Shang-Wa: Compare and contrast various internal strategies leading to the growth of an enterprise's revenues with various merger and acquisition strategies that have been utilized during the past 5 years. In what situations might each strategy be most effective? What ethical considerations that might surface if a major shareholder of a targeted acquisition is also the CEO and a Board member of the target? (Content)
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Based on the assigned scenario, answer the following questions: What is the situation? What challenges exist? What opportunities exist? What is the problem? Is there a problem? Is it worth solving? (Process)
Based on the assigned scenario, answer the following questions: What does the ideal end-state look like? What are the goals that define it? (Process)
Compare and contrast various internal strategies leading to the growth of an enterprise's revenues with various merger and acquisition strategies that have been utilized during the past 5 years. In what situations might each strategy be most effective? What ethical considerations that might surface if a major shareholder of a targeted acquisition is also the CEO and a Board member of the target? (Content)
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Based on the assigned scenario, answer the following questions: What is the situation? What challenges exist? What opportunities exist? What is the problem? Is there a problem? Is it worth solving? (Process)
Lester Electronics (LEI) is a publicly traded company that has been around since the 1920's and whose revenue is approximate $500 million per year. The Owner and CEO Bernard Lester has become very good friends with the owner of their exclusive supply company, Shang-Wa. The scenario describes that Shang-Wa has been approached by Transnational Electronics (TEC) to purchase them however; this could result in a hostile takeover. The result of such a decision would be a 43% reduction in revenues for LEI over the next five years. LEI has also been approached by an organization, Avral Electronics, which throws another problem into the mix.
The challenges include preventing any hostile takeovers, analyzing the information to make the best possible decision and preparing the staff for the potential outcomes. On the opposite extreme, this also proposes many opportunities for both companies. Shang-Wa's owner, John Lin has been looking to retire and is at the point of considering these decisions. LEI would be able to expand into the domestic market if TEC took over and they continued their relationship. If LEI were to partner with Avral, their financial backing would be beneficial.
LEI and ...
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