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Introduction
Lester Electronics is a company that is facing financial decisions for short and long-term goals. A company such as Lester Electronics began by the sole proprietor Bernard Lester who entered an agreement with Shang-wa to distribute products within the United States. Both companies are being approached by two different companies (TEC and Avral) that may separate the bond between Lester Electronics and Shang-wa. Both companies are seeking to continue their long-term investments to their employees, customers and shareholders.
Benchmarking strategies are an excellent resource to evaluate the decision these two companies must face. Lester Electronics will decide alternative solutions based on benchmarking companies such as Google, Inc., Microsoft Corporation, Ford and General Motors, Thermal Fisher Scientific and others. The companies benchmarked in this paper will demonstrate the challenges they endured and the outcomes that will create the alternative solutions for both Lester Electronics and Shang-wa.
Net Working Capital Management
Capital can be defined as “the money, property, and other valuables which collectively represent the wealth or an individual or business” (Investorwords, 2007). Net working capital, or the amount of resources available to an organization for use in sustaining and growing business levels, is calculated by subtracting current liabilities from current assets (Ross, Westerfield, & Jaffe, 2004, p. 26). Stephen Payne, president of Hackett-REL, a well-respected capital management consulting firm, points to the emphasis placed on capital manage ...