Lincoln Electric Business Case Essay Example | Topics and Well Written Essays - 2250 words

capital of Nebraska electric automobile Business Case - Essay ExampleIn early 1990s, the period that is focused in the look study, sale of arc welding equipments accounted for around 87% of their $853 million in total sales. As they sell high-value, high-quality products at competitive prices and with outstanding customer service, they were able to make even the corporate giants alike(p) General Electric and Westinghouse withdraw from the arc welding business. With such optimum success in their internal market due to their quality products and efficient work culture or processes, Lincoln electric started having international aspirations in the early 1990s. Factors that triggered the company to take on the foreign expansion Before the initiation of its ball-shaped expansion plans, Lincoln Electric actually had trading operations in Canada, Australia, and France. However, all the three functioned in hookedly away(p) from the direct influence of the Lincoln Electrics headquarters , and so Lincoln was primarily viewed as an U.S. company. Thus, to carry through the strike off of a global company, Lincoln started looking for opportunities or situations to arise. It happened first in early 1980s, when the U.S. parsimoniousness faced financial slowdown. In order to survive or even succeed in those gruelling situations, the management put forth the idea of foreign expansion. The main argument was, if Lincoln is totally dependent on the domestic market and if that market gets affected by problems like financial slowdown, it may non have other options to survive and proliferate. Although, this idea was rejected by then top management aggroup specially William Irrgang, who headed Lincoln from 1965 until 1986, Lincoln had to initiate its foreign expansion plans, when the major Swedish manufacturer of arc-welding products, ESAB started make inroads into U.S. ESAB was already operating in the countries of Latin America and Far East Asia, apart from its home oper ations in Europe. Then, it suddenly bought two midsize arc welding manufacturers in the United States. This showed that ESAB had global ambitions and importantly cherished to make incursions into the U.S. domestic market, thereby capturing a sizable market share from Lincoln. To check ESAB growing influence, Lincoln decided to take the battle to ESABs markets in Europe and Latin America. (Hastings 1999). Thus, to avoid over dependence on the domestic market particularly during tough financial times, to avoid saturation effect in the market, to acutely compete with its competitor and also to look for potential opportunities in the foreign market, Lincoln decide to lance its foreign expansion plans. Thus, in 1986, after Irrgang died, his successor George E. Ted Willis, dreamed of Lincolns becoming a global power. (Hastings 1999). combative advantages on which the foreign investments were based As mentioned above, Lincoln was able garner sizable market share, and achieved the tag o f a successful company, mainly because it delivered quality products. They are able to do that by having optimal organisational processes, which was fully complemented by effective work force. The work force was skilled and experienced to come up with innovative and quality products in quick turnaround times. Their efficiency was further optimized by motivation programs, particularly the Lincolns incentive system. That system combined a bonus with piecework the practice of paying each(prenominal) factory worker on the basis of how many units he or she produces instead of hourly stipend or salaries.