Lincoln Electric has an objective of remaining to be committed to operational excellence. As it expands its market in foreign countries, the objective is to have continued improvement focusing on cash flow generation, net income growth, and increased returns to shareholders. Also, the return on Invested Capital (ROIC) for Lincoln Electric is a crucial objective. Overall, the firm is aiming to be more competitive through embracing the analysis as an organization to achieve its goals and continue to be a global leader.

 

Goals

 The firm has goals to expand in nations like India in the long term but seeks to have an established market in China. The two nations have a big population that provides a ready market for products. Thus, increasing productivity and units would have a ready market and not incur losses. Another goal includes either building a new plant or having a joint venture while joining India. It would help Lincoln have good criteria that the firm would enjoy in a new market.

 

Strategies

     Lincoln Electric has adopted various strategies, including technology development, product mix, design, and production. Lincoln diversified and extended the production line by engaging multiple welding technologies. Modernization has been key, especially in the Cleveland plant making the industry an international welding firm. The marketing of the products has taken place in about 86 countries, thus having productivity gains from customers. Also, involving both consumable products and welding equipment has been more economical as one integrated package. 

Measures

The competition in the industry is intense.  Lincoln Electric will have to face tough competition from established players like ESAB, Ador Welding, and Kemppi, who have already captured a significant market share. In other word, Lincoln Electric would consider the large competitors in India and have an operating margin that would help the firm trade well. Also, the firm would look to get over 40% return on capital employed and estimated revenues. Other measures include producing what the firm can take to the market as it continues to grow.

 Please write a good conclusion for this analysis

Answer rating: 100% (QA)

In conclusion Lincoln Electrics commitment to operational excellence and its strategic approach to e... View the full answer