Lester Electronics Gap Analysis

Essay specific features

 

Issue:

Business

 

Written by:

John K

 

Date added:

November 22, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1631

 

Was viewed:

5378 times

 

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Essay content:

In 1978 LEI entered into an exclusive distribution contract with Shang-wa Electronics. Lester Electronics (LEI) and Shang-wa have been close partners for nearly 35 years. LEI is faced with the decision to align with Shang-wa Electronics to establish a new capacitor manufacturing facility in a neighboring Asian country, acquire Shang-wa outright, or sell the firm to Avral Electronics, Inc...
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β€œThe issue translates into an opportunity to increase revenues through sources of synergy – revenue enhancement, cost reduction, lower taxes, and lower cost of capital,” (Ross, Westerfield, & Jaffe, 2005). Clearly, the firm must study the options carefully and make a decision timely in order to maximize wealth for its shareholders...
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