edf40wrjww2CF_PaperMaster:Desc
Gap Analysis: Lester Electronics
Lester Electronics is a distributor of electronics components in the United States. Shang-wa Electronics is a small Korean electronics manufacturer. For the past 35 years the two companies have been engaged in an exclusive supply agreement that has served both companies well. Recently there have been changes in the industry, the market, and in the personal lives of the CEO's of the two companies that have led Lester to the decision to merge with Shang-wa.
The problem facing the new company as it merges as one will be identified through a brief overview of the situation. The financial changes with the merger create issues and opportunities that will be examined. Those include deciding which acquisition procedure to use, the accounting method for the acquisition, the tax form for the acquisition and how the acquisition will be financed. Each of the stakeholder's perspectives and interests will be considered in relation to the issues and opportunities. Clear financial goals will be established that define the end state and will enable Lester to measure the effectiveness of the problem solution in the future. Finally a gap analysis of the Lester/Shang-wa merger will be conducted to aid the company in developing a plan to reach its end-state goals.
Situation Analysis
Issue and Opportunity Identification
Lester Electronics Inc. is a consumer and industrial electronics parts master distributor that has been in business since the late 1970s. Shang-wa Electronics has been in business since 1969 and is a manufacturer of capacitors. In 1978 Shang-wa's CEO John Lin and Lester's CEO Bernard Lester entered into an exclusive supply agreement. Under the contract, Shang-w ...