Case Analysis: Lincoln Electric Case Study

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This is almost impossible because different occasions call for different levels of activity and seriousness. In the same way, different nations, and continents for that matter, have different values, cultures, and needs. What seems right in the U.S. may be offending in a European or Asian context. In order to thrive in international markets, a company has to mould its structures and operations in such a way that they respond to the needs, and take into consideration the values and the norm of the target market. These needs and values can only be identified through market research. Those of Asian descent, for instance, do not attach as much importance to equality as Americans do. They would find a company that treats its managers the same way it does its employees quite ridiculous because according their culture, managers ought to be accorded the authority and protection they deserve. This is a possible reason why the Lincoln system was such a failure in the Japanese market.


Question 4: Should Lincoln borrow money and pay bonuses to avoid breaking trust with its U.S. workers? Why or why not?

This can be analyzed from two perspectives. On one end, the company would be better-off paying bonuses to its employees since bonuses are a motivation for employees, and failing to pay them could result in loss of morale, or dwindling employee loyalty, which could have detrimental effects on the company in the future. However, from a situational perspective; since the company's employees have worked there, developed there, and they know for sure that the company has over the years maintained its loyalty and taken initiative to ensure their interests are take care of, the company could open up, as it always has, and explain why it is unable to pay their bonuses in the current period, then pledge to pay the same in a….....

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