Strategies for Maximizing Shareholder Wealth
Abstract
Maximizing shareholder wealth requires a decisive strategy and a well-developed plan. It allows an investor to consider financial statements and growth strategies in order to establish a course of action. Case in point, one major franchising international business bought a well-known global restaurant business. The risks and expected return by these two companies may affect its long-term future goals. A profitable electronics company may lose its primary supplier in a strategic takeover in the industry. In an effort to maximize shareholder wealth, companies must develop a strategy for every maneuver and position in its respective market.
Strategies for Maximizing Shareholder Wealth Trapped between the lost of a significant supplier, Shang-wa, and a potential hostel take over by Avral, Lester Electronic, Inc. is forced to develop a new strategic plan for survival. This is due to the important role that Shang-wa plays in LEI’s annual revenue. The lost of Shang-wa will profoundly decrease LEI annual revenue; causing LEI to go out of business. In addition, Avral is another threat to LEI’s survival. Avral can potentially acquire LEI through a hostel takeover. In recent event, IHOP acquired Applebee’s. LEI can use the experience from the merger of both IHOP and Applebee’s to help LEI with a new strategic planning. LEI need focus on issues such as growth strategies, capital management strategies, cross-borders challenges, companies overall performance, and the companany’ allocation of corporate resources. Using IHOP as a benchmark, LEI can better develop an efficient plan for the company’s survival.
Synopsis of Companies
Lester Electronics, Incorporated Lester Electronics is a U.S.-based consumer and electronics parts master distributor. Lester distributes electronic parts such as capacitors to small and medium size original equipment manufacturers, repair facilities and small local distributor. Lester has had an
Maximizing shareholder wealth requires a decisive strategy and a well-developed plan. It allows an investor to consider financial statements and growth strategies in order to establish a course of action. Case in point, one major franchising international business bought a well-known global restaurant business. The risks and expected return by these two companies may affect its long-term future goals. A profitable electronics company may lose its primary supplier in a strategic takeover in the industry. In an effort to maximize shareholder wealth, companies must develop a strategy for every maneuver and position in its respective market.
Strategies for Maximizing Shareholder Wealth Trapped between the lost of a significant supplier, Shang-wa, and a potential hostel take over by Avral, Lester Electronic, Inc. is forced to develop a new strategic plan for survival. This is due to the important role that Shang-wa plays in LEI’s annual revenue. The lost of Shang-wa will profoundly decrease LEI annual revenue; causing LEI to go out of business. In addition, Avral is another threat to LEI’s survival. Avral can potentially acquire LEI through a hostel takeover. In recent event, IHOP acquired Applebee’s. LEI can use the experience from the merger of both IHOP and Applebee’s to help LEI with a new strategic planning. LEI need focus on issues such as growth strategies, capital management strategies, cross-borders challenges, companies overall performance, and the companany’ allocation of corporate resources. Using IHOP as a benchmark, LEI can better develop an efficient plan for the company’s survival.
Synopsis of Companies
Lester Electronics, Incorporated Lester Electronics is a U.S.-based consumer and electronics parts master distributor. Lester distributes electronic parts such as capacitors to small and medium size original equipment manufacturers, repair facilities and small local distributor. Lester has had an
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