Gap Analysis: Lester Electronics

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Running head: GAP ANALYSIS: LESTER ELECTRONICSGap Analysis: Lester ElectronicsKatrina BaileyUniversity of PhoenixGap Analysis: Lester ElectronicsLester Electronics, Inc, (LEI) is a publicly traded manufacturing company founded in 1978, as the result of an exclusive United States distribution contract with Shang-wa Electronics (SE). With the addition of several components to its product line, and two large domestic manufactures that use capacitors in both consumer and industrial products, the company grew rapidly. Although the company has a core market of small- and medium-sized original equipment manufacturers, repair facilities and small local distributors throughout America and Europe, to date, the organization has never marketed domestic-made parts outside of the United States (Lester Scenario, 2008). Both Lester and Shang-wa have been recently approached by competing companies interested in acquiring these organizations for the purpose of global expansion. While such an acquisition would be beneficial to both Bernard Lester and Shang-wa CEO, John Lin, the two old friends and business partners have decided to continue to set their own course and have begun discussions for a merger of the two organizations.

This paper will discuss the issues facing Lester as well as the opportunities that may become available were the merger to take place. In addition, the perspectives of the stakeholders will be discussed, as well as, any ethical dilemmas that need to be addressed. Finally, this paper will address Lester's end-state vision and as well as a gap analysis detailing how the company can move from where it is to where it would like to be in the future.

Situation AnalysisIssue and Opportunity IdentificationA merger with Shang-wa could mean an opportunity for Lester to take advantage of a low debt ratio, as a result of entering into a high growth industry. However, the differences in accounting techniques could make it difficult to interpret...