Star River Electronics Ltd.

STATEMENT OF THE PROBLEM
Star River Electronics Ltd. is a large manufacturer and supplier of CD-ROMS. It was founded as a joint venture between New Era Partners and Starlight Electronics Ltd. It has enjoyed a great deal of success in the past decade, due in large part to their excellent reputation.
Star River does need to address several issues with the recent resignation of their former CEO. Digital Video Disks are expected to cut into the CD-ROM market in the very near future, and with only 5% of their sales coming from this area, Star River needs capital expenditures to increase the…