Gap Analysis: Lester Electronics In the Lester Electronics scenario, there are several things happening at the same time. Shang-Wa had already suggested a partnership to Lester Electronics, but this now becomes more urgent due to a hostile takeover offer from TEC. In fear of losing his company, John Lin, CEO and founder of Shang-Wa, approaches Bernard Lester, CEO of Lester Electronics with a serious proposal to form, collaborate and expand the business into a nearby Asian country. Lester Electronics, however, must decide whether a partnership is the best path forward or whether acquiring Shang-Wa outright would be more beneficial. This document will review all the issues and opportunities associated with this scenario. Situation Analysis Identifying Problems and Opportunities The Lester Electronics scenario presents the potential for several problems and opportunities. The first problem is that Shang-Wa was approached with a hostile takeover bid. TEC has shown interest in acquiring Shang-Wa to expand its global growth opportunities. Shang-Wa knows that due to TEC's size as a company, this could turn into a hostile takeover if they don't cooperate. As part of their defensive technique, Shang-Wa approached Lester Electronics with the idea that a partnership would be beneficial to both companies. Lester Electronics did the research and found that a merger would be more beneficial to the company. This could cause some possible problems with Shang-Wa because their proposal was for a partnership, not a merger. John Lin, CEO of Shang-Wa, may not be ready to give up on his company just yet, even though he is considering retiring soon. As part of a merger with an internationally based company, Lester Electronics will also need to carry out research to find out how to best manage operational exposures, such as exchange rate fluctuations. Stakeholder Perspectives/Ethical Dilemmas There are several ethical dilemmas and differences in perspectives that Lester Electronics and Shang-Wa must consider. Lester Electronics is finding that it would be in their best interest to merge with Shang-Wa, and Shang-Wa CEO John Lin is interested in a partnership instead. John Lin is the founder of Shang-Wa and is not ready to give up complete control yet. However, he is thinking of retiring. This poses an ethical dilemma between Shang-Wa and its stakeholders. John Lin might make a decision based on what is best for him rather than what would be most beneficial to the company.