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Problem Solution: Lester Electronics
In 1978 Lester Electronics entered into an exclusive contract with Shang-wa Electronics. The contract was an exclusive distribution agreement between both companies (University of Phoenix, 2007). With all the changes that are happening in many areas of the business world they would be looking for ways to grow their company either by acquisitions or mergers. The situation that was happening with Silver Socks is that they wanted to acquire Lester Electronics. LEI had to decide what would be best for the company since Arval is interested in acquiring LEI. In the situation with Transnational Electronics Corporation they had shown interest in acquiring Shang-wa which would cost Lester Electronics as they would lose their exclusive contract with Shang-wa and it would greatly affect the revenues of the company.
By merging with Shang-wa, Lester Electronics would have a greater opportunity to grow globally and maximize the shareholders wealth.......
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Title: Mba 530
Approximate Word Count: 574
Approximate Pages: 3 (250 words per double-spaced page)
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