Introduction:Lester Electronics, Inc., is a distribution association in the United States, and has a contract with Shang-wa Electronics, a Korean manufacturer of capacitors. Shang-wa has been in trade since 1969, and has been a small successful business from the beginning. Under the contract, which moldiness be renewed annually, Shang-wa granted, Lester the exclusive right to sell capacitors in the United States for 65 years, as long as Lester well-kept a minimum annual purchase of $1 meg wholesale; as result, Shang-wa is Lester?s primary supplier of capacitors for the U.S. market. In exchange, Shang-wa cannot knowingly sell its capacitors to anyone intending to market to U.S. buyers. Lester added additional components to its product line. Shang-wa?s capacitors are well known in the U.S. market that is wherefore Transnational Electronics Corporation, a macroscopic manufacturer and distributor of electronics components wants to achieve Shang-wa. On the other hand, Avral Electronics equipment and component parts manufacturer headquartered in Paris wants to acquire Lester, because they want to market their product in the U.S. market (UOP, 2007). This new acquisition could cost trouble between Lester and Shang-wa agreement and for morale.
Situation AnalysisIssue and Opportunity IdentificationLester Electronics, Inc. is a distribution company in the United States, and they have 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 $ five 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 distress for Lester?s and could through them into bankruptcy. By merge the two companies they will be able to build...
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment