Lester Electronics Essay

3588 WordsMar 30, 200915 Pages
Problem Solution: Lester Electronics Companies face many issues as they move through the ever-changing process of business. Change can often be beneficial, but at times it can detrimental to the company. Chief Executive Officers (CEO) must be ultimately responsible for making the right decisions to accommodate these changes. The changes and issues are as diverse as the number of industries there are in the business world. One of the biggest decisions a CEO can make is the decision of mergers and acquisitions. Mergers and acquisitions are commonplace in the business world, but it doesn’t make the decisions of the CEO’s any less important or critical. Mergers and acquisitions are often choices made by companies for growth, but sometimes they are not decided by choice but out of necessity. This paper will discuss such an instance. This paper will review a company, Lester Electronics (LEI) that is put in a position in which it has many options. LEI have grown tremendously over the last few years, but a series of events have put that in jeopardy. This paper will show those events and reflect the optimal solution for Lester to present to his board of directors and to save his company. LEI are a consumer and electronics parts master distributor that markets the products to small and medium sized original equipment manufacturers. (University of Phoenix, 2009) They are geographically limited with distributing mainly through the United States. LEI were founded by Bernard Lester in 1978. He founded it in response to a Korean manufacturer, Shang-wa, entering into a distribution contract with him to exclusively sell Shang-wa capacitors in the United States for 65 years. In 1984, Lester took the company public and it is now traded on the NASDAQ market and rated Baa by a nationally recognized rating agency. (University of Phoenix, 2009) Situation Analysis Issue and

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