Lincoln Electric: Venturing Abroad Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Lincoln Electric: Venturing Abroad Case Solution

Summary

Lincoln Electric, is a well-known manufacturing company of consumables and welding equipment and is based in the United State. The company had a strong market presence in the international market and in the local market. The company hasunique strategies that helps to motivate its employees regarding the maintenance of quality in its manufacturing site so this would help the company to capture the wide range of market place as compared to its rivals. Furthermore, the company motivated its employees via a spirit of mutual aid between the labor and the management of the company. It also providing the large bonuses on the basis of individual contributions to the performance of company. However, the company had an unusual compensation system based on the piecework that motivate the workforce to perform a qualitative and productive effort for the company (O'Connell, 1998).

The company had opened international production and sales venture across various countries including Canada, France, and Australia while the main focus of the company is on manufacturing in the US until 1988. While the new CEO of Lincoln expanded manufacturing via Greenfield and acquisitions in more than 9 countries, however, the company could not perform well regarding the replication of a highly productive system(Siegel).

PACARDI Analysis

Problem Statement

The company could not regulate its high system of production in foreign countries while during the 90s the company was facing problems regarding operations. However, the CEO of the company wanted to expand the manufacturing base via new strategies. Furthermore, the regional president is trying to decide whether and how to starting industrial and manufacturing presence in the market across Indonesia. In addition to this, the company is also considering whether to transfer the company’s distinctive system of incentive-driven management in Indonesia or not (O'Connell, 1998).

Alternatives

Lincoln has a strong market presence in the US and wanted to expand its manufacturing market abroad.Through expansion, the company could gain an international presence in the global market. However, here are some alternatives that would help the company to fix the problems regarding the acquisitionand joint ventures(Götz, 2018). The suggested alternatives for expanding the manufacturing industry in Indonesia and transforming of company’s distinctive system of incentive-driven management includes the

Collaborations with manufacturing companies
Acquisition
Global marketing (Global and local) strategies embedment companywide

Collaborations with Manufacturing Companies

The company has a well-developed local market and the step for the execution of business expansion in the region of Indonesia would be productive for the company if the company would collaborate with multinational companies which have well-reputed growth in the manufacturing market. This would help the company to build strong brand recognition in the Indonesian market where Lincoln can successfully regulate the market via collaboration. However, the collaboration with the well-established Indonesian companies would help the company in reducing constrain of marketing through which the company could successfully establish a well-reputed market within a short period of time.

Acquisition

The acquisition is an important part of the business that plays a significant role in the establishment of a profitable company in the industry. As Lincoln trying to decide regarding the execution of its business in the Indonesian market, would be the best opportunity for the company to execute the manufacturing business in the country through an acquisition that would help the company to attract wide and responsive customer market. It is somehow very critical for the company if the company could not choose respective company for acquisition because it would affect the financial stability as well as the market presence of the company. So, the company is needed to strong demographic and market research that enables the company to choose profitable market(Fatehi, 2019).

GlocalMarketing (Global and Local) Strategies Embedment Companywide

The global marketing strategies of marketing include both local and global marketing that help the company to achieve a strong market as compared to other companies. Although Lincoln has a strong manufacturing business across the United States and now need to work on its global strategies that enable the company to expand its market across the borders as well. The global mindset or strategies required a complete approach of embodiment companywide because this would help the company to maintain its qualitative operations. The embedment of global policy companywide would help every employee to understand the customer’s taste in both local and global market. So, via this strategy, the company would balance both markets and successfully build a strong market globally(O-INSPECT).

Criteria

Lincoln Electric has a strong and well-developed company in the manufacturing industry across the United States. The company has two main segments which includes the welding equipment and consumables goods that have a well-reputed market in the local market. However, the company wanted to expand its business across the borders such as Indonesia, for which, it is very essential for Lincoln to use analytical research of the manufacturing industry in Indonesia. It would help the company to acquire a profitable market position in the market.

The most important and influential factor that the company has, is the incentives and bonuses that would play a significant role to maintain the quality of operations. As the company hasa functional cooperative atmosphere between employees and administration, it would encourage each employee and member of the company to give extra effort for the company. So, it is very essential for the company to take a decision that would maintain the market of the company which would not affect the financial health of the company as well...................

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Lincoln Electric: Venturing Abroad Harvard Case Solution & Analysis