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Benchmarking for Bernard Lester
University of Phoenix
MBA540
Instructor - Farshad Maltes
Benchmarking for Bernard Lester
Lester Electronics is at a tipping point of the business. Lester cannot continue to manage the business as has previously been done for a number of reasons. Due to changes in the industry, their largest vendor, Shang-wa feels pressured to sell to another manufacturer. If Shang-wa does not sell or enter into a joint venture with Lester, Shang-wa will not likely continue to remain in business. Lester also feels pressured by a competitor to sell the business. Lester must make the decision to either sell or grow so that they are not forced out of business. Lester's proposal to create a joint venture with Shang-wa may be the only option that would allow both companies to stay in business. In addition, both companies are faced with aging presidents and must put together succession plans if they do choose the joint venture option.
Joint Venture Benchmarking for Bernard Lester
Since Lester Electronics is a distributor of capacitors and not a manufacturer they must form a relationship with a manufacturer in order to have a product to distribute. One way to achieve a partnership would be to enter into a joint venture. A joint venture is a contractual agreement joining together two or more parties for the purpose of executing a particular business undertaking. All parties agree to share the profits and losses of the enterprise (www.investorwords .com, 2006).
Evox Rifa
One company that Lester can look at is Evox Rifa. Evox Rifa was facing some of the same issues that Lester ...