Corporate Benchmarking

Essay by lakeview1810University, Master'sA+, December 2008

download word file, 18 pages 5.0

Lester Electronics was formed after acquiring an exclusive distribution agreement between Bernard Lester and Shang-wa electronics in the United States. Lester Electronics now faced with a buyout must decide which, if any, the best decision for the corporation is. Like most corporate decisions, the decision to sell the corporation has several parties with various inputs that will need to be considered.

This analysis will evaluate internal and external growth strategies, describe working capital management strategies to maximize shareholder wealth, describe the challenges of cross-border growth strategies, assess organizational performance using financial statement and ratio analysis and describe the role of portfolio management in the allocation of corporate resources. In addition, Lester Electronics will make a final decision on whether or not to sell the corporation.

Internal and External Growth StrategiesGrowing in the business community and their respective industries is a common concern of organizational entities like Lester Electronics Inc. and Shang-wa Electronics.

Both are seeking stability, growth and an opportunity to expand on business opportunities. Each has a multitude of strategies to consider on the course to achieve these goals. Internally, a company can aggressively streamline itself and concentrate on making its own management and corporate process more effective, while investing its own money in its own processes.

Companies like Mitsubishi have followed this path; this is a slow, but more controllable method of growing in its industry (Mitsubishi, 2008). Externally, a company or organization may choose to invest its money in the acquisition of another company, such as Avral Electronics, S.A. and Transitional Electronics Corp. Both companies want to try to grow through the addition of LEI and Shang-wa Electronics into their own business. If this is successful it will effectively strengthen them in their respective industries.

The corresponding methods are effective at generating additional growth. Externally acquiring another...