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The paper discusses the issues associated with the risks assessed between the organizations bidding for ownership of Lester Electronics. As described in the scenario

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Running head: PROBLEM SOLUTION: LESTER ELECTRONICS Problem Solution: Lester Electronics Nicole Hamblin University of Phoenix Problem Solution: Lester Electronics This paper shows problem solution for the organizations listed within the Lester Electronics scenario. It discusses the planning process used in determining the best avenue to take in deciding to sell or not sell the organization or to merge with another organization. It also discusses the decisions of a potential merger or buy-out of Lester Electronics, Shang-wa Electronics, Transnational Electronics Corporation, and Avral Electronics, S.A. The paper discusses the issues associated with the risks assessed between the organizations bidding for ownership of Lester Electronics. As described in the scenario, Lester Electronics is an organization that entered into an exclusive contract in the United States with Shang-wa Electronics, a small Korean manufacturer of capacitors. Lester Electronics grew rapidly making inroads with two large domestic manufacturers that use capacitors in both consumer and industrial products. Since Lester Electronics is the master distributor of electronic parts it markets its products to small and medium sized original equipment manufacturers also known as OEMs, repair facilities, and small local distributors throughout the Americas and in Europe. Lester Electronics, because of the exclusive contract with Shang-wa Electronics, has not marketed domestic-made parts outside of the United States. By operating in this manner, Lester Electronics has revenues that total approximately $500 million dollars a year. Six years after the initiation of the contract with Lester Electronics and Shang-wa Electronics, Lester Bernard, the founder and CEO of Lester Electronics took his company public and it is now traded on the NASDAQ market and rated Baa (which is considered as medium-grade obligations, meaning they are neither highly protected nor poorly secured) by a nationally recognized rating agency. John Lin who is the CEO of Shang-wa began the manufacturing of capacitors in 1969 by building a small well-respected business in Korea. Nine years later, in 1978, he entered into an exclusive supply agreement with Lester Bernard, CEO of Lester Electronics in the United States. ...read more.


ACC provides the opportunity for successful contractors to join a team of like-minded companies to become part of a profitable, geographically and service-diverse company that can provide more meaningful work and greater wealth creating opportunities that are possible in a single, smaller company. ACC demonstrates that a larger geographically diverse company, balancing work from the public and private sectors, as well as creating a more stable income and employment for its member companies therefore creating a substantial value for all its stakeholders. ACCs internal growth strategy consists of investing in its existing operations. This is a positive point that can be used by Lester Electronics as it holds the benefits of investing in known entities. They know the people involved and can clearly measure the resources necessary to expand an existing operation. The cost of this organic growth can be significantly less than pursuing an external strategy. ACCs external strategy is a carefully executed program that is an important complement to their internal or organic growth. They only consider growth as it contributes to the underlying business. This would be accomplished as the organizations in the Lester Electronics scenario are doing by the strategic acquisition of like-minded companies with well-defined attributes. This strategy is important to all stakeholders because if executed properly it is the fastest way to increase the value of the company and selected acquisitions will bring additional skills to the repertoire of the organization and enhance their service offerings. ACC clearly shows what should be carefully considered by all organizations in the Lester Electronics scenario, a company should not acquire just for the sake of acquiring, they should only pursue companies, which have been strictly evaluated and can clearly add value to the organization. Remedy Interactive - Return on Investment As defined in Wikipedia, the phrase "return on investment (ROI), or sometimes referred to as just return, is the ratio of money gained or lost on an investment relative to the amount of money invested. ...read more.


The plan should be modeled after the successes of different companies that have also been successful in developing a new company merger. American Civil Constructors, Remedy Interactive, Kimberly-Clark, and Coca Cola were all successful at creating a merger or organizations. They were successful in this venture and therefore the strategy used by them as generic benchmarking can be used by Lester Electronics/Shang-wa Electronics as an example to assist in accomplishing the same goals for a successful implementation of their merger. Lester Electronics/Shang-wa Electronics can use these examples for their benefit in following the lead of a company that has already been successful with accomplishing the same tasks. Evaluation of Results For Lester Electronics/Shang-wa Electronics to evaluate if the implemented solutions are successful, they must evaluate the difference in profit increase made after the merger has been implemented. If the projections are correct there should be a steady increase in overall profits over the next four quarters slowly rising and with a more noticeable increase over the next three years in quarterly increments. The company will notice an increase in sales due to new expansion in their customers attained from new products that were developed and the increase in global expansion. Conclusion Lester Electronics/Shang-wa Electronics needs to create the needed products and finances to complete the strategy developed by the newly developed board. The assistance of the organization's alliances with other successful electronics' organizations within this area developing new products will assist Lester Electronics/Shang-wa Electronics in becoming the industry leader. By developing these alliances with other electronics organizations coupled with Lester Electronics/Shang-wa Electronics will ultimately increase their amount of financial stability for this organization and place it in a better financial position to expand its revenue and products. By accomplishing this it places the company in a better position globally. This summarizes the overall short-term goal of the organization which is development of new revenue and products to expand the overall capital and revenue of the organization. ...read more.

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