Lincoln Electric
Lincoln Proposed Resolution:
1.1 International Expansion Team
• The root of Lincoln Electric’s troubles began with the quick expansionist mindset of George Willis. The main trouble was the speed of the expansion. Lincoln Electric should have formed international expansion team focusing on the key areas that initiates a market analysis to spearhead strategic directions of developing good governance framework and promoting inclusive growth. They are also responsible to evaluate alternative mode of entry into selected regions with the following mode of entries: Joint Venture, Acquisitions, Partnership and Trading.
2.1 Develop culture profile of every country it has operations or going to have a presence. Understanding other people's languages, cultures, government’s laws and business etiquettes is of great value in expanding Lincoln’s market globally.
3.1 Standardized and cap group bonus pay-out base on agreed performance measures and score card. These measures will benefit Lincoln’s to have an effective policy and operational efficiency.
4.1 Be willing to tweak it’s performance measurement system. Lincoln must learn how to adapt in-country conditions, government policies, laws and regulations
5.1 Strategic Planning Functional Team. This proposed team from Head Quarters must be able to identify the broad as well as the detailed issues concerning international transaction.
6.1 Proper Classification of Lincoln’s Market such as Global OEM, Emerging Markets, Global After Markets and Regional Distribution Organizations.
7.1 Adaptation of Business Unit approach. Lincoln’s should categorize the profit centers and expense center’s business units accordingly. Proposed business units are as follows:
Profit Centers:
a. Power Gen BU
b. Marine BU
c. Oil & Gas BU
d. Construction
e. Automotive & Transportations
Expense Centers
a. Global HR
b. Logistics & Operations
c. Global Sourcing
d. Global Production
e. Global R&D Engineering
Lesson Learnt
A major
1.1 International Expansion Team
• The root of Lincoln Electric’s troubles began with the quick expansionist mindset of George Willis. The main trouble was the speed of the expansion. Lincoln Electric should have formed international expansion team focusing on the key areas that initiates a market analysis to spearhead strategic directions of developing good governance framework and promoting inclusive growth. They are also responsible to evaluate alternative mode of entry into selected regions with the following mode of entries: Joint Venture, Acquisitions, Partnership and Trading.
2.1 Develop culture profile of every country it has operations or going to have a presence. Understanding other people's languages, cultures, government’s laws and business etiquettes is of great value in expanding Lincoln’s market globally.
3.1 Standardized and cap group bonus pay-out base on agreed performance measures and score card. These measures will benefit Lincoln’s to have an effective policy and operational efficiency.
4.1 Be willing to tweak it’s performance measurement system. Lincoln must learn how to adapt in-country conditions, government policies, laws and regulations
5.1 Strategic Planning Functional Team. This proposed team from Head Quarters must be able to identify the broad as well as the detailed issues concerning international transaction.
6.1 Proper Classification of Lincoln’s Market such as Global OEM, Emerging Markets, Global After Markets and Regional Distribution Organizations.
7.1 Adaptation of Business Unit approach. Lincoln’s should categorize the profit centers and expense center’s business units accordingly. Proposed business units are as follows:
Profit Centers:
a. Power Gen BU
b. Marine BU
c. Oil & Gas BU
d. Construction
e. Automotive & Transportations
Expense Centers
a. Global HR
b. Logistics & Operations
c. Global Sourcing
d. Global Production
e. Global R&D Engineering
Lesson Learnt
A major