Gap Analysis: Lester Electronics

Table of Contents

Situation Analysis 3

Issue and Opportunity Identification 3

Stakeholder Perspectives/Ethical Dilemmas 4

End-State Vision 6

Gap Analysis 6

Conclusion 8

The stockholders of Lester Electronics are also the owners of the company. They elect the Board of Directors who in turn appoints the management group. Thus, the management is expected to function in the best interests of the company’s stockholders. One goal that the management aims for is the maximization of stock value, including dividens, by means of sound decision making. As the CEOs Bernard Lester and John Lin of Lester Electronics and Shang-Wa, respectively, confront the issue of merging both their companies to eschew a hostile takeover. The merger offers several opportunities, as well, for both companies as they take advantage from the complementing of their respective strengths and weaknesses. The amalgamation of both companies also presents them the opportunity to flesh out a financial plan that enables them to forecast their finances. By reviewing each other’s income and balance statements, Lester and Shang-Wa will both be able to ascertain the viability of questing after leasing equipments.

Situation Analysis

Issue and Opportunity Identification

Lester Electronics, Inc. is a master distributor of electronics parts. Its products are marketed to repair facilities, small- and medium-sized original equipment manufacturers (OEMs), and small local distributors throughout Europe, North America, and South America. For the United States, Lester has been tied in an exclusive distribution contract with Shang-Wa Electronics. This agreement has been serving both companies very well. Through partnership, Lester and Shang-Wa have demonstrated their capability of meeting the rising demands of the market. Presently, other companies wishing to acquire Lester and Shang-Wa have been proposing to the CEOs of both firms. John Lin of Shang-Wa wishes to expend less time on business and more time with his grandchildren. With the threat of a hostile takeover, Mr. Lin approached