Gap Analysis: Lester ElectronicsEssay Preview: Gap Analysis: Lester ElectronicsReport this essayTable of ContentsSituation AnalysisIssue and Opportunity IdentificationStakeholder Perspectives/Ethical DilemmasEnd-State VisionGap AnalysisConclusionThe stockholders of Lester Electronics are also the owners of the company. They elect the Board of Directors who in turn appoints the management group. Thus, the management is expected to function in the best interests of the company’s stockholders. One goal that the management aims for is the maximization of stock value, including dividens, by means of sound decision making. As the CEOs Bernard Lester and John Lin of Lester Electronics and Shang-Wa, respectively, confront the issue of merging both their companies to eschew a hostile takeover. The merger offers several opportunities, as well, for both companies as they take advantage from the complementing of their respective strengths and weaknesses. The amalgamation of both companies also presents them the opportunity to flesh out a financial plan that enables them to forecast their finances. By reviewing each other’s income and balance statements, Lester and Shang-Wa will both be able to ascertain the viability of questing after leasing equipments.
Situation AnalysisIssue and Opportunity IdentificationLester Electronics, Inc. is a master distributor of electronics parts. Its products are marketed to repair facilities, small- and medium-sized original equipment manufacturers (OEMs), and small local distributors throughout Europe, North America, and South America. For the United States, Lester has been tied in an exclusive distribution contract with Shang-Wa Electronics. This agreement has been serving both companies very well. Through partnership, Lester and Shang-Wa have demonstrated their capability of meeting the rising demands of the market. Presently, other companies wishing to acquire Lester and Shang-Wa have been proposing to the CEOs of both firms. John Lin of Shang-Wa wishes to expend less time on business and more time with his grandchildren. With the threat of a hostile takeover, Mr. Lin approached
- On September 2, 2015, John Lin, President, Strategic Planning, stated in an Investor Relations email that at the beginning of summer, a request for his company at Shang-Wa Electronics for an IPO was received from an investor of a leading U.S. manufacturer called, Shang-Wa Electronics, Inc. This representative stated that an investor would not participate in any IPO. Shang-Wa is very active in many of the major market markets. In fact, during our business, we received numerous calls about a potential interest in some of our projects or plans, and some investors raised the possibility of a Chinese company. Mr. Lin has not been informed of any such potential. All three companies’ respective employees have provided us with various legal and disclosure documents that they have submitted to the Securities and Exchange Commission (SEC) regarding their business interests in related matters. We believe that a potential takeover of Lester and Shang-Wa would be a very important step in our efforts to move Lester and Shang-Wa towards a global position, which would not only help develop Lester in Asia but, more importantly, further develop Lester’s brand.[1]
- As part of our strategic planning, we have developed and finalized a $1 or less equity allocation for Lester that will support its continued growth in demand. Our goal will be to maintain the momentum of Lester, which will serve to create value at a high quality from Lester’s production lines and a premium of $400,000 per individual share by 2024. Our goal is to ensure we fully diversify Lester’s market share based on economic, market opportunity, and equity opportunities in the short-term, and to ensure that our current line of Lester production continues to improve and attract more consumers. Our current line of Lester production consists of two large-scale Los Angeles-based, non-U.S. manufacturing line, the Los Angeles-area, California, “Lester-T” line as it stands now, and the Los Angeles-CA line, operated by Lester Holdings, and has been operated for two decades in the Los Angeles area for sale. During this same time, Lester produced, sold, and supplied the following: the “Lester-T” Los Angeles-line, the Los Angeles-CA line as it stands now, Lester Products of New York, and the Los Angeles-CA line, which includes Lester Equipment and Lester Electronics (the “Lester-T” line), Lester Manufacturing, and Lester Electronics, Inc., an affiliate subsidiary of Lester Electronics & Incorporated. The sale of the “Lester-T” Los Angeles-line and the Los Angeles-CA line involves Lester-T, and Lester’s sole investment, a $1 million share of Lester Corporation stock rights, and the sale of all of the Lester assets, interest and voting rights to Lester Corporation, plus a 30% conversion tax exclusion to be paid upon the sale of all Lester stock. In addition, Lester continues to offer Lester items and goods which include the Lester Corporation and Lester Electronics equipment, which are offered through Lester’s online catalog. All of Lester’s inventory is of the U.S. manufactured and assembled level. Lester Holdings does not manufacture, sell, or deliver Lester products. Lester Products is a wholly owned subsidiary of Lester Corporation, and Lester Electronics, Inc., an affiliate subsidiary of Lester Electronics and Incorporated. Lester and Lester Electronics are responsible for their own business, the services of Lester and his employees. Lester Equipment and
- As part of our strategic planning, we have developed and finalized a $1 or less equity allocation for Lester that will support its continued growth in demand. Our goal will be to maintain the momentum of Lester, which will serve to create value at a high quality from Lester’s production lines and a premium of $400,000 per individual share by 2024. Our goal is to ensure we fully diversify Lester’s market share based on economic, market opportunity, and equity opportunities in the short-term, and to ensure that our current line of Lester production continues to improve and attract more consumers. Our current line of Lester production consists of two large-scale Los Angeles-based, non-U.S. manufacturing line, the Los Angeles-area, California, “Lester-T” line as it stands now, and the Los Angeles-CA line, operated by Lester Holdings, and has been operated for two decades in the Los Angeles area for sale. During this same time, Lester produced, sold, and supplied the following: the “Lester-T” Los Angeles-line, the Los Angeles-CA line as it stands now, Lester Products of New York, and the Los Angeles-CA line, which includes Lester Equipment and Lester Electronics (the “Lester-T” line), Lester Manufacturing, and Lester Electronics, Inc., an affiliate subsidiary of Lester Electronics & Incorporated. The sale of the “Lester-T” Los Angeles-line and the Los Angeles-CA line involves Lester-T, and Lester’s sole investment, a $1 million share of Lester Corporation stock rights, and the sale of all of the Lester assets, interest and voting rights to Lester Corporation, plus a 30% conversion tax exclusion to be paid upon the sale of all Lester stock. In addition, Lester continues to offer Lester items and goods which include the Lester Corporation and Lester Electronics equipment, which are offered through Lester’s online catalog. All of Lester’s inventory is of the U.S. manufactured and assembled level. Lester Holdings does not manufacture, sell, or deliver Lester products. Lester Products is a wholly owned subsidiary of Lester Corporation, and Lester Electronics, Inc., an affiliate subsidiary of Lester Electronics and Incorporated. Lester and Lester Electronics are responsible for their own business, the services of Lester and his employees. Lester Equipment and