Essays on Internal and External Factors Explain Lincoln Electric Failure in Ventures outside the US Case Study

Download full paperFile format: .doc, available for editing

The paper "Internal and External Factors Explain Lincoln Electric Failure in Ventures outside the US" is a perfect example of a business case study. The case study of Lincoln Electric provides insight into how companies make decisions on expansion and possible challenges that they may face as well as successes. The case based on the welding industry has over a period of more than 100 years made decisions that have contributed to the internal expansion. The company developed in both portfolio and size. For instance, Lincoln Electric began as a producer of electric motors and later incorporated the production of welding equipment and welding consumable products.

The later additions became the main line of business for the company marking its portfolio expansion. Additionally, the company opened up its human resource policies and management practices to become a pioneer in innovative procedures that became the standard for the welding industry. Part of the growth was in its international expansion in which from the 1940s the company became international, with greater expansion realized between 1985 and 1992 as Lincoln Electric expanded into 15 countries. The following analysis explores the experiences of Lincoln Electric during its phase of expansion, identifying its success and failures, and the reasons for the differences in outcomes across the international market.

The analysis then uses these lessons to outline a case for expansion into the Indian market. Internal and External Factors Explain Lincoln Electric Failure in Ventures outside the U. S Lincoln Electric's expansion outside the U. S. market was marked by building manufacturing plants in Canada, Australia, France, Brazil, Mexico, Scotland, Norway, the United Kingdom, the Netherlands, Spain, and Germany (Siegel 2006). The expansion into Europe and Latin America marked critical losses for Lincoln Electric in operational cost.

By 1992, the company was forced to borrow money to be able to pay its U. S. employees an annual bonus, regardless of the U. S. plants remaining strongly profitable.

REFERENCE

Dransfield, R 2001. Corporate Strategy, Heinemann, Oxford.

Grünig, R & Kühn, R 2015. The Strategy Planning Process: Analyses, Options, Projects, Springer, New York.

Hofstede, G 2011. ‘Dimensionalizing Cultures: The Hofstede Model in Context’, Online Readings in Psychology and Culture, vol 2, no. 1, article 8.

Siegel, JI 2006, November. ‘Lincoln Electric,’ Harvard Business School Case 707-445, (Revised August 2008)

Download full paperFile format: .doc, available for editing
Contact Us