Gap Analysis: Lester Electronics Lester Electronics has partnered with Shang-wa Electronics, a small manufacturer of capacitors for the juvenile 35 years. Their partnership included an exclusive agreement for fork over and selling capacitors (University of Phoenix). Recently some addition opportunities have presented themselves to some(prenominal) Lester Electronics and Shang-wa Electronics which is requiring both companies to make some tough decisions. Until now, Lester has not marketed home(prenominal) made products outside(a) of the United States. Operating this way Lester Electronics for birth never draw the type of return that ordain be needed to inflate in the industry.-wa Electronics have built a very infrangible relationship throughout the years. By coming together these two companies entrust be able to avoid takeovers and project the evolution needs for their products. If Shag-wa is taken over by TEC Lester forget lose 43% of expected reven ues over the next quin dollar bill years (University of Phoenix). Bernard Lester of Lester Electronics and John Lin of Shang Merging with Shang-wa and expanding selling is a growth opportunity for Lester Electronics. “Many firms have growth opportunities, that is, opportunities to invest in profitable projects” (Roess, et el., p.18).
By taking returns of the expertise and cognition from both companies Lester can go global, light upon the growing demand of their products, and become a front offshoot in their various(prenominal) industry. Situation Analysis Issue and Opportunity identificati on The proposed merger between Lester Elect! ronics and Shang-wa will bring to pass many another(prenominal) issues that if addressed effectively will clear many opportunities for the unseasoned merged company. Because Lester and Shang-wa are two various types of businesses, the financial strategies of all(prenominal) company differ. Merging these two companies with different financial strategies create a risk to the organization and the shareholders. Lester internalization must see to it long-term financing strategies and ensure...If you want to get a full essay, order it on our website: OrderCustomPaper.com
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