Lincoln Electric Venturing Abroad Essay - 3524 Words

TOP ESSAY WRITING SERVICES REVIEWS


Rank
Service
General
Prices

1
  • Since 2008
  • Free revisions
  • Money-back guaranty
  • Up to 5% for the first order. Up to 15% for the orders starting from 2nd

from $9.97/pp

visit site

2
  • Since 2009
  • Free title page, revisions
  • Discount policy
  • Satisfaction guarantee
  • More than 100 000 orders delivered

from $9.97/pp

visit site

3
  • Since 2010
  • PhD holding authors only
  • SMS notifications & VIP support
  • Discount policy

from $22/pp

visit site

4
  • Since 2010
  • 24/7 support team
  • More than 500 writers
  • Money-back guaranty
  • Up to 15% discounts

from $9.97/pp

visit site

 

StudyMode - Premium and Free Essays, Term Papers & Book Notes

Products

About

@2017 studym.wressy.com

Exclusive

  1. Home >
  2. Essays >
  3. Lincoln Electric Venturing...

Lincoln Electric Venturing Abroad

Only available on StudyMode Open Document Save to my library

Please sign up to read full document.

Text Preview 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 analyzed Lincoln’s current capabilities and its past experiences and prepared a transformative plan based on business concept innovation [Hamel[2], ch 3], documented by this report, with a three pronged approach for the Asia Region. The first prong would be to execute Massaro’s strategy, to grow revenue in the less-developed countries, by building a factory in Indonesia in a joint venture with SSHJ as a pilot step, to be followed by further expansion to other South East Asian countries, and to China. The second prong would be to build on Lincoln’s strengths as an organization, including its technical innovativeness and incentive system and its people, to prepare Lincoln for the expansion effort ahead. The third prong would be to extend Lincoln’s competencies to the level of a living system [Senge[3], ch 12] that learns, from the Asia Region expansion experience and from all aspects of its future existence, how to grow sustainably [Kaplan[4], ch 4]. Current Status

Lincoln was financially sound at this time to undertake the planned international expansion. After having been remarkably successful for nearly a century of existence, Lincoln started to slide in 1988 toward bankruptcy with a steep drop in cash from $61 million to $23.9 million, with $17.5 million from long term debt [p 19]. Return-on-sales dropped from 6.2% in 1987 to 1.7% in 1991 [Exhibit A. Financial Ratios]. Similarly, return-on-equity and return-on-assets, respectively, dropped from 13.5% and 9.4% in 1987 to 5.5% and 3.3% in 1991. Restructuring efforts between 1992 and 1994 [p 19] and the associated management changes [p 7] succeeded in the ensuing financial turnaround to return to pre-1987 status with 6.0% ROS, 18.6% ROE, and 11.2% ROA in 2005. A 40% equity public offering in 1995 [p 1] injected approximately $132 million[a]. With the financial leverage at 2.15x and quick ratio, current ratio, interest coverage, and long-term-debt/total-assets of respectively 0.9x, 2.1x, 9.1x, and 15.2%, Lincoln should be able to finance the Asian expansion. Four Lessons Learned

A major element for any organization to sustain success and to continue growth would be to build and maintain an institutional ability to learn. Because Lincoln had encountered failures in its previous attempt to expand internationally, Lincoln had the unique opportunity to learn lessons from these failures. 1. The Incentive Plan[b] should be implemented within the context in which it was grounded. The governing principle[c] from which the Incentive Plan was created was stated by James Lincoln in that “All those involved must be satisfied that they are properly recognized [p 2].” Thus the question one should ask was not “Should we implement the Incentive Plan?” Rather, the question to ask should be “How the Incentive Plan may be utilized to properly recognize customers, workers, management, owners, community, and society?” From 1987 to 1995, the Incentive Plan system had ensured exceptional productivity that resulted in gross-profit-margins within a range of 35.2 to 38.5. And yet, during the same nine year span, the three major profitability indices of ROS, ROA, and ROE had dipped into the red. Thus, the strict application of the Incentive Plan failed to properly recognize at least the owners. And, Lincoln’s poor overall financial performance during that period would have led to continued total incentives decline and to ultimate demise if Lincoln had depended solely on the Incentive Plan. Non-Incentive Plan... Show More

Please sign up to read full document.

YOU MAY ALSO FIND THESE DOCUMENTS HELPFUL

POPULAR ESSAYS

Pros and Cons of Facebook 3m Organizational Analysis High school Essay Costs Essay Nephron Essay Risk Essay Legality of cannabis by country Essay Corporation Essay

Share this Document

Cancel Send

Join millions of other students and start your research

Become a StudyMode Member

SIGN UP - IT's FREE

Have a great research document you think will help inspire other StudyMode members?

Share your document

Upload Now

Get full access to more research and tools for only $0.33/day

Upgrade your Membership

GET PREMIUM @2017 studym.wressy.com Legal Site Map Advertise studym.wressy.com, Online Education, Hollywood, CA

More great study tools:


{"hostname":"studym.wressy.com","essaysImgCdnUrl":"\/\/images-study.netdna-ssl.com\/pi\/","useDefaultThumbs":true,"defaultThumbImgs":["\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_1.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_2.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_3.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_4.png","\/\/stm-study.netdna-ssl.com\/stm\/images\/placeholders\/default_paper_5.png"],"thumb_default_size":"160x220","thumb_ac_size":"80x110","isPayOrJoin":false,"essayUpload":false,"site_id":1,"autoComplete":false,"isPremiumCountry":false,"userCountryCode":"CN","logPixelPath":"\/\/smhpix.com\/pixel.gif","tracking_url":"\/\/smhpix.com\/pixel.gif","cookies":{"unlimitedBanner":"off"},"essay":{"essayId":35500726,"categoryName":"Periodicals","categoryParentId":"17","currentPage":1,"format":"text","pageMeta":{"text":{"startPage":1,"endPage":10,"pageRange":"1-10","totalPages":10}},"access":"premium","title":"Lincoln Electric Venturing Abroad","additionalIds":[3,52,7,93],"additional":["Business \u0026 Economy","Business \u0026 Economy\/Organizations","Education","Education\/Greek System"],"loadedPages":{"html":[],"text":[1,2,3,4,5,6,7,8,9,10]}},"user":null,"canonicalUrl":"http:\/\/studym.wressy.com\/essays\/Lincoln-Electric-Venturing-Abroad-910275.html","pagesPerLoad":50,"userType":"member_guest","ct":10,"ndocs":"1,500,000","pdocs":"6,000","cc":"10_PERCENT_1MO_AND_6MO","signUpUrl":"https:\/\/studym.wressy.com\/signup\/","joinUrl":"https:\/\/studym.wressy.com\/join","payPlanUrl":"\/checkout\/pay","upgradeUrl":"\/checkout\/upgrade","freeTrialUrl":"https:\/\/studym.wressy.com\/signup\/?redirectUrl=https%3A%2F%2Fstudym.wressy.com%2Fcheckout%2Fpay%2Ffree-trial\u0026bypassPaymentPage=1","showModal":"get-access","showModalUrl":"https:\/\/studym.wressy.com\/signup\/?redirectUrl=https%3A%2F%2Fstudym.wressy.com%2Fjoin","joinFreeUrl":"\/essays\/?newuser=1","siteId":1,"facebook":{"clientId":"306058689489023","version":"v2.9","language":"en_US"}} tracking img