Lincoln Electric Essay

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Lincoln Electric Assignment Questions: 1. Put yourself in CEO John Stopki’s shoes. Should Lincoln Electric expand into India by investing in a major production facility there? Yes, Lincoln Electric should expand to India. And the reasons are: a. India is a fast growing economy and an attractive market over the past 15 years. b. India is currently rebuilding its infrastructure and they would need thousands of miles of new pipelines for oil and gas. c. Third largest welding market in Asia (in 2006); industry growth higher than the country’s growth rate. 2. If you were to expand to India, would you enter through acquisition, a Greenfield site or some type of joint venture? Which factors would inform your decision among these entry made choices? I would enter through building a new manufacturing plant (Greenfield site) because: a. If I enter through acquisition, then the company would likely end up paying an acquisition premium more than they would normally pay. On top of that, one of the target companies was already owned by Lincoln competitors and the rest had family control issues. b. Joint ventures did not prove to be successful in Lincoln’s recent experience in China. The company realized that its future growth has been restricted in China due to the partnership structure, and the two sides didn’t always agree on how to grow the business. As a result in China, the company had chosen to not produce its most technologically advanced products. c. Greenfield site seems to be the most viable option out of the three because of the fact the Lincoln brand is uniquely valued in SE Asia therefore it will help establish a strong manufacturing plant to penetrate the Indian market. 3. In which countries is Lincoln Electric likely to be more successful or least successful? Why? How would this guide your own choice of where to

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