Principles of Management

LINCOLN ELECTRIC

I. PROBLEM

The company is having difficulty exporting a management system abroad which results to huge loss international plants

II.OBJECTIVES

-Increase production in international plants

-Reduce cost

III. Analysis of relevant facts

SWOT ANALYSIS

STRENGTHS

- Good company reputation being known as the leading manufacturer of welding products

- Effective local management system

- Loyal and satisfied employees in the US

- Strong workforce employing 6,000 workers worldwide

- Financially stable with $1 billion in sales

- Exemplary culture

WEAKNESSES

- Poor management of international operations

OPPORTUNITIES

- With successful management system abroad there is an opportunity to beat local competition

- Business expansion in other countries can be possible

THREATS

- Recession in Europe and South America can lead overseas to manager into unethical practices

- European labor was hostile to a piece-work bonus control system which lead job dissatisfaction of employees

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IV. Alternatives

Strenghts/Opportunities

>Management should think of ways on how to properly present the benefits of their current management system to overseas managers and employees

Pros

1. Acceptance of the management system can make the employees become more productive

2. Avoid loss in international plants

3. Reduce cost

Cons

1. The management system does not take into consideration the culture of other countries which can dissatisfy employees

Weaknesses/Opportunities

>Lincoln should study other countries culture before setting up a management system

Pros

1. Effective and efficient management system

2. Less conflict between the management and its workers abroad

3. Satisfied employees

Cons

1. Setting different management systems in different countries can be costly

2. Requires a lot of time which can lead to competitors overtaking the market

Strengths/Threats

>Lincoln should consider using local resources of each...