Who are these masters, and what are their demands? Shareholders demand protection of, and a fair return on, their investment. Customers demand delivery of promised goods and services for value received. Employees demand a safe working environment, fair compensation, and honest communication. Senior management demands adherence to direction and policies. "One's personal belief system demands truth to one's self, and our community's demand that we abide by established laws (Lester Electronics). Herein lies the potential for conflicting interests and personal pain" (Schuster & Smith, 1994).
End-State Vision
The joint company of Lester Electronics and Shang-Wa Electronics maximizes the value of the company and the shareholder wealth.
Gap Analysis
Two independent companies are merging in order to create a stronger company. With a vision of maximizing shareholders wealth there is a multitude of opportunities. As separate entities, they have developed their own financial plans to maximize their company's value and shareholders wealth. "Financial planning formulates the method by which financial goals are to be achieved" (Ross-Westerfield-Jaffe, 2004, Chapter 3, p.44). There are common elements that should be contained. A couple of major items to be addressed after evaluating the separate income and balance sheets are the capital spending and debt policy of the combined company. Mr. Lester will need to decide how to use net working capital and how the new company will raise equity (Lester Electronics)..
Mr. Lin feels that merging with Lester Electronics will create a much stronger and more viable company. "Managers should choose the capital structure that they believe will have the highest firm value, because this capital structure will be most beneficial to the firm's stockholders" (Ross-Westerfield-Jaffe, 2004, Chapter 15, p.404).
According...
That this case has emerged internally gives us an opportunity to ensure that situations like this do not arise out of our control, i.e. discovered by a customer. We have the opportunity to built our compliance and audit procedures from scratch, so that the level of oversight these departments have on the firm's operations is complete, and insulates the firm against further risk. An investigation should be conducted into
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January 21, 2011 -- All contracts must be signed and returned by this date. January 21-Feb 1 -- interview caterers, hotels, limo services to make certain that they are appropriate. Visit all vendors and sites. February 1-4, 2011 - book all hotel, limo and catering reservations. Pay all deposits necessary. February 7-11, 2011 -- Find backup caterer and limo service in case of problems May 2-6, 2011 -- meet with caterer, choose menu, make
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