Gap Analysis: Lester Electronics

Problem Solution: Lester Electronics

Gap Analysis: Lester Electronics

Merger's, acquisitions, partnerships, and various combinations of company takeovers occur daily in today's business arena. Understanding the responsibility of social and economic development, wealth, prosperity, and longevity begins with understanding the financing aspect of a business based on the consumer's need. Bernard Lester, CEO and founder of Lester Electronics is currently entered into an Exclusive Supply Agreement with John Lin, founder and CEO of Shang-wa Electronics. Shang-wa Electronics manufactures capacitors which Lester exclusively has the right to sell the capacitors in the United States for 65 years (University of Phoenix Scenario, 2007). The annual agreement is up for renewal and now facing possible competitors. The Board of Directors for Lester Electronics has made the decision to allow a merger with Shang-wa. In order to complete the merger the board of directors must consider assessing financing need for wealth maximization, identifying medium-term financing alternatives, and analyzing long-term financing instruments. This paper will compile a gap analysis incorporating the issues/opportunities, stakeholder perspectives, and end-state goals involved in assessing the financial need for wealth maximization, identifying medium-term financing alternatives, and analyzing long-term financing instruments in the merger decision by the board of directors.

Situation Analysis

Issue and Opportunity Identification

Situational analysis involves understanding the issues observed