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Gap Analysis: Lester Electronics
In the Lester Electronics Scenario, there are several things going on at once. Shang-Wa had already suggested a partnership to Lester Electronics, but this is now becoming more urgent due to a hostile takeover bid by TEC. In fear of losing his company, John Lin, the CEO and founder of Shang-Wa, approaches Bernard Lester, CEO of Lester Electronics with a serious proposal to form and partnership and expand the business in to a neighboring Asian country. Lester Electronics however, has to decide whether a partnership is the best way to go, or if acquiring Shang-Wa outright would be more beneficial. This paper will go over any issues and opportunities associated with this scenario.
Situation Analysis
Issue and Opportunity Identification
The Lester Electronics Scenario has potential for several issues and opportunities. The first issue is that Shang-Wa has been approached with a hostile takeover bid. TEC showed its interest in acquiring Shang-Wa to expand their global growth opportunities. Shang-Wa knows that due to the size of the TEC as a company, this could turn in to a hostile takeover is they do not cooperate. As part of their defensive technique, Shang-Wa has approached Lester Electronics with the idea that a partnership would benefit both companies. Lester Electronics has done the research and found that a merger would be more beneficial to the company. This could cause some possible problems with Shang-Wa because their proposal was for a partnership, not a merger. John Lin, Shang-Wa's CEO may not be ready to give up his company just yet, even though he has been thinking of retiring soon. As part of a merge with an internationally based company, Lester Electronics will also have to do the research to find out how to best deal with operational exposures, such as exchange rate fluctuations.
Stakeholder Perspectives/Ethical Dilemmas
There are several ethical dilemmas and differences in perspectives that Lester Electronics and Shang-Wa need to consider. Lester Electronics is finding that it would be in their best interest to merge with Shang-Wa, and Shang-Wa's CEO, John Lin, is interested in a partnership instead. John Lin is the founder of Shang-Wa and is not quite ready to give up complete control yet. However, he has been considering retiring. This poses an ethical dilemma between Shang-Wa and its stakeholders. John Lin may be making a decision based on what is best for him rather than what would be more beneficial for the company.
In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
Harrison-Keyes is a global publisher of print products that specializes in scientific, technical and business books and journals, professional and consumer books, textbooks and other educational materials for all levels of study. Founded in 1899, Harrison-Keyes is shifting market to meet the needs of customers, by mid-1950s the company became a leading publisher of business, scientific and technical information (Apollo, 2008).
...pective relationship as both sides will need to take information back to their team to work on a way forward. Chinese are generally risk averse but once they commit their plans tend to be long term which is not unusual when you consider how important the relationship building is prior to agreeing to do business.
She argued that Gree needs innovation and diversification to move to a higher level. Dong Mingzhu mentioned that a firm should not only focus on getting itself used to the times and reaching market demand, but also creating and seeking customers’ need that are unknown by consumer themselves (CE China Daily, 2017). As we know, at the beginning Gree only had the air condition products, for now they have variety of small appliances, smart appliances, and their products also cover smart phones even they want to try new energy vehicles. However, the board of Gree rejected integration plan of Yinlong which is an important step of Dong Mingzhu to go to new energy vehicles market, she purchased stock right of Yin Long with one billion RMB as individual to hold on her mind of innovation and diversification. “Chinese companies should focus on innovation which is driving role of Chinese economy because only innovation can create real value”, said by Dong Mingzhu in an interview, “many companies just copy other’s ideas, but I think the pioneers should have social responsibility at the mission to innovate products (New China TV,
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
Yan, A. and Luo, Y. (2001), International Joint Ventures: Theory and Practice. (New York and London: M.E. Sharpe, Inc.).
How does this case illustrate the threats and opportunities facing global companies in developing their strategies?
He had a keen interest in working in the Pacific Rim for which he was eventually rewarded a position of Chairman on Board (COB) at the Factory in China. What we noticed is that due to Control's relative inexperience and lack of understanding of joint venture, James was recalled only after completing one third of his contract length, to be replaced by a relatively inexperienced employee from Singapore (Jimmy Chao). Controls Asia Pacific, in doing so, ignored the fact that they might threaten the success of the joint venture. This case shall try and analyze what factors may have caused this pull out to occur, what may be its consequences, and what we feel should be done, in order to reinstate trust and confidence to make the joint venture a success. Adaptation, Acceptance and Experience.
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
This case study analysis is on Samsung Electronics Company (SEC) and how it has climbed up the ranks in the past decade via calculated marketing strategies, extensive market research and analysis, and a risky bet on how the market will evolve. Samsung’s principle outlook took time and education from within and thereafter the general market.
When entrepreneurs plan their business future they will consider how they can increase their business size or profit in a short period. Entrepreneurs may consider growing their business or company by using a merger or an acquisition. These methods can be a speed up tool and a short cut to enlarge their business. (Burns, 2011) Also they can reduce competition, make it easier for entrepreneurs to think about the market and product development and risk reduction. Furthermore, some lesser – known companies can improve their firm’s image and market power by using merger and acquisition with larger firms. However, there may be risks associated with merger and acquisition related to lack of finance and time. (Burns, 2011) This essay will discuss more deeply the advantages and disadvantages of using mergers and acquisitions, showing how it can affect firms and market with the case study.