Lester Electronics and Shang-wa Electronics Essay by Master Researcher

Lester Electronics and Shang-wa Electronics
Analysis of the Lester Electronics company and the Shang-wa Electronics company and whether a merger of the two makes sound business sense.
# 90705 | 2,475 words | 5 sources | 2006 | US
Published on Dec 01, 2006 in Business (Companies) , Business (Industries)

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This paper considers the case of Lester Electronics and its relationship to the supplier Shang-wa Electronics. The paper considers whether a deal between the two companies makes sense in the context of other business alternatives. The paper considers the players, the situation and the options and determines that a merger between the companies makes sense.

From the Paper:

"Lester Electronics, Inc., is a U.S.-based distributor of consumer and industrial electronic components, with annual revenues of $500 million. Since 1978, Lester has had a close partnership with Shang-wa Electronics, a Korean manufacturer of capacitors with $60 million in revenues. This partnership has consisted of yearly agreements for Lester to purchase a minimum of $1 million wholesale from Shang-wa, in return for rights to exclusivity. In recent months, informal discussion between the principals - Mr. Bernard Lester, CEO and founder of Lester, and Mr. John Lin, founder and CEO of Shang-wa - has involved the possibility of a $60 million joint venture in a yet-to-be-determined Asian country that would be designed to combine Lester's management expertise with Shang-wa's manufacturing efficiencies to produce components in the growing market for capacitors."

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APA Format

Lester Electronics and Shang-wa Electronics (2006, December 01) Retrieved September 27, 2022, from https://www.academon.com/essay/lester-electronics-and-shang-wa-electronics-90705/

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"Lester Electronics and Shang-wa Electronics" 01 December 2006. Web. 27 September. 2022. <https://www.academon.com/essay/lester-electronics-and-shang-wa-electronics-90705/>