Problem Solution: Lester Electronics, Inc MBA 540 week 6

Introduction:Lester Electronics, Inc., is a distribution connective in the United States, and has a contract with Shang-wa Electronics, a Korean manufacturer of capacitors. Shang-wa has been in mess since 1969, and has been a small thriving business from the beginning. nether the contract, which moldiness be renewed one-yearly, Shang-wa granted, Lester the easy lay right to sell capacitors in the United States for 65 years, as long as Lester kept up(predicate) a minimum annual purchase of $1 meg wholesale; as declaration, Shang-wa is Lester?s primary supplier of capacitors for the U.S. grocery store. In exchange, Shang-wa cannot knowingly sell its capacitors to anyone intending to market to U.S. buyers. Lester added additional percentages to its product line. Shang-wa?s capacitors are well cognise in the U.S. market that is because transnational Electronics Corporation, a macroscopic manufacturer and distributor of electronics components demands to touch Shang-wa. On the other hand, Avral Electronics equipment and component parts manufacturer headquartered in Paris requirements to acquire Lester, because they want to market their product in the U.S. market (UOP, 2007). This new achievement could cost trouble betwixt Lester and Shang-wa agreement and for morale. Situation AnalysisIssue and opportunity IdentificationLester Electronics, Inc. is a distribution federation in the United States, and they puddle a contract with Shang-wa Electronics, which is a Korean manufacturer of capacitors.

Under this contract which is renewed annually, Shang-wa is Lester?s primary supplier of capacitors for the U. S. market. Lester?s revenues are approximately $ phoebe bird hundred million a year. The next issue is that Transnational Electronics is arouse in a hostile take-over of Shang-wa, if this happens it would mean a large drop of 43% of the revenue for Lester?s Electronics. This would result in financial trouble for Lester?s and could through them into bankruptcy. By merge the two companies they go out be able to build... If you want to lower a bounteous essay, order it on our website: Orderessay

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