1. Should Lincoln Electric expand into India by investing in a major production facility there?
I think that Lincoln Electric (LE) should definitely has a production facility in India because of its growth and foreseen opportunities, but if I were LE I would suggest to enter with a local partner in order to gain knowledge and experience in how the country operates in terms of bureaucracy, labor, culture and so on.
LE is known for its high quality products and its technical innovations. On its 60 years of international experience, the company gained valuable knowledge on what to do and what to avoid when moving abroad, and that is why they refocused their expansion strategy into joint ventures, instead of acquisitions avoiding the…show more content… As the CEO mentioned in the case the use of JV in China was key for starting business in that country (even though they are starting to do thing by their own) and that without the help from a local partner they could not have succeeded in that market. On the other hand, the use of JV with a local partner would expose the company to share some confidential information that could be used by the partner, copying or imitating technology, in case the deal break. Another negative point is the fact that in a later stage of the relationship, interests might differ. As it happens in China, the partner wants to grow in volume but LE wants to do it in revenues. All this conflicts, even though are necessary, can erode the business relationship.
Another way of entering the country would be either by an acquisition of an existing Indian company or by starting from scratch a new plant. These two options in my opinion also have some positive and negative points, but do not overcome JV. By acquiring a company within the welding industry the problem of which valuation to use become essential. As the case mentioned, LE has some very strict criteria to proceed with the acquisition and, the purchase price would be affected by the economic booming in India influencing on the price premium to pay. The strategy to use for acquiring such companies would
Lincoln Electric Executive Summary Michael Gillespie, The Lincoln Electric Company’s new president for the Asia Region, was “encouraged to develop plans to open welding consumables factories in several Asian countries” by the new CEO, Anthony Massaro, and Gillespie had specifically “turned his attention to plans for Indonesia [O’Connell,[1] main reference, p 1].” We worked with Gillespie to prepare for the September 1996 meeting with Massaro and the presidents of the other worldwide regions. We…
People at Lincoln Electric Company By Dr. Kim A. Stewart Jones International University Let’s recall for a moment a key question that we raised in Module 3. Can a company be both a low cost leader and best differentiator in its industry, making the best quality products at the lowest cost? Yes, it’s possible but it is exceptionally rare. Lincoln Electric Company is one of the very few companies that have achieved this pinnacle. Headquartered in Euclid, Ohio, a suburb of Cleveland, Lincoln Electric…
based on Lincoln Electric Company and Southwest Airlines, the eight chapters include chapters 1 and 3 then chapters 7 through 12. As a group we have worked together to prepare each different chapter and we have used the cases to help develop our own Human Resource skills. This paper will demonstrate how as a group…
Lincoln Electric expansion to India Name Institution Affiliation Date Market entry strategy involves the essential requirement for a company to get into international level. The need of involving other companies whereby two companies join together is referred to as joint venture entry. They get into a similar market and make the same production with the aim of sharing risk and at the same time they share the profit according to their terms of agreement (Kretzberg, 2007). Therefore, Lincoln…
program helps to keep the employees engaged and motivated to do well by rewarding them for all the good work they do. For instance, in the Lincoln Electric case employees were paid based on piecework. This would induce the employee to produce as many pieces as possible in order to receive a high…
automotive manufacturers in the world. It manufactures and distributes automobiles across six continents. The company also provides financial services through Ford Motor Credit Company. The company's automotive vehicle brands include Ford and Lincoln. Ford primarily operates in Nor th America, Europe, and Asia. It is headquar tered in Dearborn, Michigan, and employed about 164,000 people as of December 31, 2011. The company recorded revenues of $136,264 million during the financial year ended…
fuel cell vehicles because they have more potential than electric cars to replace gasoline powered automobiles. Vehicles powered by hydrogen fuel cells have proved to be as effective as gas-powered vehicles. For example, a Toyota Highlander powered by a hydrogen fuel cell was able to travel 533 kilometers without refueling (Tollefson par. 17); whereas, Craig Scott, manager of Toyota's advanced technologies group, pointed out that “electric vehicles… are unlikely to [travel] beyond a range of 150…
Quiz # 1 Study Guide Quiz Date: September 13, 2013 PART ONE: MATCHING You will be required to match the following terms, ideas, events, and individuals with their appropriate historical definition: The Freedmen’s Bureau: March 1865 by Abraham Lincoln,that aided distressed freedmen (freed slaves) in 1865–1872 The 13th Amendment: passed by the Congress on January 31, 1865, and ratified by the states on December 6, 1865. The 14th Amendment: adopted on July 9, 1868, one of the Reconstruction Amendments…
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Everest University Marketing Management MBA The 25 Best Companies in America #1 Cummins (NYSE: CMI) Market Cap $21.81 billion Investor -- 8.5 Customer -- 9.6 Employee -- 8.3 World -- 10 Cummins is a leader in the design and manufacture of world-class, high-performance engines for trucks, buses, light-duty vehicles, and heavy equipment. It also produces power generation equipment like diesel generators, emissions solutions, and fuel systems.Cummins' products are renowned for…
