Gap Analysis: Lester Electronics

Running head: GAP ANALYSIS: LESTER ELECTRONICS

Gap Analysis: Lester Electronics

B.T.Brown

University of Phoenix

Gap Analysis: Lester Electronics

In today’s business environment, company executives are often required to participate in a company’s capital budgeting process as the sponsor, reviewer or approving authority of investment decisions. Lester Electronics is at a tipping point of the business. Lester cannot continue to manage the business as has previously been done. Lester Electronics is a consumer and electronics parts master distributor that markets its products to original equipment manufacturers. For many years, Shang-wa Company has had an exclusive supply agreement with Lester electronics. Now, the CEO of Shang-wa is wishing to retire and has no formal succession plans for the company’s management. At the same time, Transnational Electronics Corporation (TEC) is pursuing Shang-wa for a takeover. Lester Electronics and Shang-wa Electronics are both upset over the take over possibility. In looking for solutions in the manufacturing marketing, Lester Electronics, Incorporated (LEI) is looking for viable options for growth. “Whether a company chooses to make further investments in its core business or decides to expand beyond its current core, there are only three avenues by which companies can grow their revenue base: (1) organic or internal growth, (2) growth through