Lincoln Electric Company Case Essay

After reviewing the side I feel that the main(prenominal) reason of capital of Nebraskas unknown operation dilemma was because of its erratic incorporate strategy, which was the similar strategy that made capital of Nebraska so fortified in the United States. capital of Nebraskas competitive advantage in the United States was based in its unique civilization and incentive system of rules (Anthony and Govindarajan, 2007). A corporate culture that emphasized open communication and rely began with its bring in care. Lincolns leaders used an approach that back up all employees to share their thoughts not only with their managers but also with the chief operating officer (Anthony and Govindarajan, 2007). This corporate wide approach to management, encouraged by the companys incentive system, created an exceptionally committed and executed micturateforce. Lincoln thought that its management style and incentive system would work to regenerate the foreign trading operations performance by energizing and committing its workers (Anthony and Govindarajan, 2007).But Lincoln did not bring to pass was that its corporate culture had been created and confirmed for over almost a cardinal year and took time to build such a successful corporate culture (Anthony and Govindarajan, 2007). By 1993, Hastings realized the mistakes they had made (Anthony and Govindarajan, 2007). The corporate culture of European countries would not be compatible with their programs. For example, German workers were highly skilled and Germans worked a few(prenominal)er hours a week than Lincolns U.S. workers did (Anthony and Govindarajan, 2007). The U.S. workers frequently worked overtime and usually on short notice, which helped to make the incentive system work successfully (Anthony and Govindarajan, 2007). German workers were not as productive as Lincolns U.S. workers (Anthony and Govindarajan, 2007). Donald Hastings began to be lie with conscious of what the company was up agains t. For the offshoot time Lincoln evaluated the projects that it was undertaking with the view of what the company was facing and what it could real accomplish (Anthony and Govindarajan, 2007).Lincoln Electric would be possessed of to cut back on almost all of the operations it had invested in just a few years prior. Lincoln was forced to begin restructuring plan for all of its foreign operations to go outside thecompany to find innovative top management (Anthony and Govindarajan, 2007). In bless to improve global operations, I commend that Lincoln Electric must improve its company relations, its production systems, and its localization in the global community. Lincoln Electric should concentrate on underdeveloped and manufacturing inventive products. This action pass on help Lincoln Electric win a competitive advantage to its competitors. Furthermore, contracts should be set up with Lincolns supplier and buyers. By creating contracts with the suppliers, Lincoln can lessen literal costs and price its products competitively.Additionally, I think that they should have partnerships with great buyers will help in the creation of new products, as well as securing a contractual agreement. Given that Lincoln Electric has g unrivaled beyond its experimental global expansion stage, it should carry on such opportunities in profitable and a cost-effective environment. Lincoln should attempt to only come into new markets when it has a firm partner that currently operates in the market. Lincolns incentive system should only be put into practice in operations where the workforce and its culture are compatible with their program. This case did alter my viewpoint regarding managing foreign operations.I think that in order to pursue business in another country you must have knowledge of the international markets or cultures. What may work in one country may not work in another country. I think that when deciding which countries to decide to expand in, that all factors regarding culture should be considered. Lincoln Electric Holdings has proven to be a successful, innovative company that holds a immense leadership position in its industry.ReferencesAnthony, R. N., & Govindarajan, V. (2007). Management curb systems (12th ed.). New York, NY McGraw-Hill/Irwin.