edf40wrjww2CF_PaperMaster:Desc
Problem Solution: Lester Electronics
Lester Electronics has been in business since 1978 growing from an exclusive contract to market Shang-wa electronics capacitors within the United States. To date Lester Electronics has not ventured outside of the domestic market and as of late has been considering the possibilities of a joint venture with Shang-Wa Electronics to break into the global market. Domestically, Lester Electronics added several more component products during the early company years and after entering into contracts to supply components to several large domestic manufacturers, Lester Electronics grew into a multi-million dollar supplier that became publicly traded on the NASDAQ market and is rated Baa by a nationally recognized rating agency. (University of Phoenix, 2008) Recent changes in Shang-wa management and current offers to acquire their company from an outside corporation has put Lester into a delicate position of trying to hang onto their current exclusive distribution contract with Shang-wa while pursuing their secondary goals of breaking into the global market through capitol investments in Europe. Lester has decided to merge with Shang-wa and is considering different financing options to both acquire Shang-wa and provide for future opportunities for growth. (University of Phoenix, 2008) This paper will review issues and opportunities facing Lester Electronics, discuss stakeholder perspectives and issues, define the problem facing Lester Electronics regarding financing needs for wealth maximization, define an end state for Lester Electronics and discuss the solutions and timelines to achieve that end state. In addition, alternate solutions will be considered and the risks assoc ...