LINCOLN ELECTRIC

Lincoln electric

Lincoln Electric Case

Question 1Identify and appraise the key strategic issues confronting John stropki as he leads the expansion of Lincoln Electric's international business in 2006. Explain how you have used module concepts and frameworks in your analysis.

Successful implementation of the Strategic Planning process of a Lincoln Electric depends largely upon the measures that its management takes to monitor and evaluate its progress effectively and to make adjustments in case of any digressions and deviations.

Importance of Monitoring, Evaluating and Adjusting for Strategic Planning of Lincoln Electric

Monitoring of Lincoln Electric involves a continuous follow-up of the progress of the strategic plan adopted through supervision of both employees and the operations. Evaluation refers to the process of measuring the actual results and comparing them with the standards identified earlier in the plan. Finally, Adjusting is aimed at making necessary changes to bring conformity between the Lincoln Electric's actual direction and the written plan (Baghai, 1999, pp. 100-109).

Monitoring, evaluating and adjusting ensure that the Lincoln Electric's actual activities are in line with its targets, and its resources are being efficiently utilized. These enable the management of Lincoln Electric to create a strategic fit between its various departments and operations and measure their progress in quantifiable terms. Such measures improve the overall performance of the employees and communication between the various hierarchy levels (Cateora, 1993, pp. 47-87). Most importantly, they act as a warning system in case of negative deviations and digressions that may hinder the success of the plan. This allows the adaptation of corrective actions and contingencies to address these in a timely manner (Alston, 1999, pp.111-128).

Steps of implementing Effective Monitoring, Evaluating and Adjusting in Lincoln Electric

Effective monitoring, evaluating and adjusting imply the following steps to be taken.

The planning process of involve people directly responsible for its implementation

The plan must not have more than five strategic goals.

Divide the overall strategy into small action plans and sub-schemes.

Identify the role of individuals through well-defined job descriptions and performance reviews.

Communicate the role of the managers responsible for supervising and monitoring.

Adopt activities that comply with the mission and values of the organization.

Develop a comprehensive feedback system.

Potential Issues in Lincoln Electric

If an effective monitoring and evaluation system is not adopted, the entire strategic plan of the Lincoln Electric may lapse (Hamermesh, 1986, pp. 115-120). The management may fail to identify the potential threats in the internal and the external environment. Alternatively, the company may not be able to identify the gap between the targeted goals and the actual results. It may also affect the coordination and communication between individuals and departments, and create confusion and disorder.

Achieve Cost Synergies

The search for efficiency is at the heart of the notion of good governance. By practicing policy synergies, companies can streamline their functioning and emit funding capacity for future investment. This is the strategic goal of Lincoln Electric to achieve the targeted cost synergies by acquisitions and mergers and expanding the welding business in the global subsidies by the help of globalization (Baghai, 1999, pp. ...