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In 1978 LEI entered into an exclusive distribution contract with Shang-wa Electronics. This contract has worked favorably for both parties for quite some time, however, another company has shown interest in acquiring Shang-wa Electronics and such an acquisition would be detrimental for business at LEI. The Board of Directors at LEI, after considering many options, has decided to enter into a merger with Shang-wa. This merger could stand to be advantageous for LEI; however, the company must take many precautions and be confident in the success of their final decisions.
Issue and Opportunity Identification
Another firm has become interested in acquiring Shang-wa which could mean the loss of the exclusive contract forged years ago between Bernard Lester and John Lin...
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