Problem Solution: Lester Electronics, Inc MBA 540 week 6

Introduction:Lester Electronics, Inc., is a distribution tie beam in the United States, and has a contract with Shang-wa Electronics, a Korean manufacturer of capacitors. Shang-wa has been in administer since 1969, and has been a small flourishing business from the beginning. at a lower place the contract, which mustiness be renewed yearbookly, Shang-wa granted, Lester the exclusive right to sell capacitors in the United States for 65 years, as long as Lester trim a minimum annual purchase of $1 meg wholesale; as solvent, Shang-wa is Lester?s primary supplier of capacitors for the U.S. food market. In exchange, Shang-wa cannot knowingly sell its capacitors to anyone intending to market to U.S. buyers. Lester added additional parcels to its product line. Shang-wa?s capacitors are well cognize in the U.S. market that is thence multinational Electronics Corporation, a visible manufacturer and distributor of electronics components demands to gain Shang-wa. On the other hand, Avral Electronics equipment and component parts manufacturer headquartered in Paris indispensabilitys to acquire Lester, because they want to market their product in the U.S. market (UOP, 2007). This new acquisition could cost trouble among Lester and Shang-wa agreement and for morale. Situation AnalysisIssue and probability IdentificationLester Electronics, Inc. is a distribution go with in the United States, and they train a contract with Shang-wa Electronics, which is a Korean manufacturer of capacitors.

Under this contract which is renewed annually, Shang-wa is Lester?s primary supplier of capacitors for the U. S. market. Lester?s revenues are approximately $ phoebe bird hundred million a year. The next issue is that Transnational Electronics is arouse in a hostile take-over of Shang-wa, if this happens it would mean a large drop of 43% of the revenue for Lester?s Electronics. This would result in financial hurt for Lester?s and could through them into bankruptcy. By merge the two companies they allow for be able to build... If you want to lower a lavish essay, order it on our website: Orderessay

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