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Essay / Research Paper Abstract
This 5 page paper looks at a case study supplied by the student. Lincoln Electric want to expand into India, they have three choices; acquisition, joint venture or a new start up company. The paper discusses the advantages and disadvantages of each option. The bibliography cites 2 sources.
Page Count:
5 pages (~225 words per page)
File: TS14_TELinindia.rtf
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Unformatted sample text from the term paper:
question Lincoln needs to consider is which would be the best method of entry; acquisition, joint venture or a new start up as a wholly owned subsidiary. Each of these
has advantages and disadvantages and it appears that Lincoln has experience with each of these market entry methods and could apply lessons from the former experiences. The first option
is to use acquisition as a market entry strategy. The use of acquisition can give immediate results. The Indian market has already developed and by using a firm that has
already developed market share with an existing customer base there will be the immediate ability to start creating a return on the investment and issues such as culture and a
misunderstanding of culture which have occurred in the past will not add to the time taken for returns to be created. However there are also some disadvantages which Lincoln has
already seen in the past. Taking over a company can result in uncertainly and resistance from the employees, especially in Lincoln seek to introduce major changes, such as the piecework
system. In the US where it is established there has been a long history to create trust t with the employees, where this is suddenly introduced it can damage trust
and cause long term harm from employees that are afraid. Therefore, the use of acquisition will mean that Lincoln will have to build up trust before major changes to the
culture are made if these costs are to be avoided. If an acquisition is made the culture issue may be a hidden cost, however, there may also be higher
short term visible costs. When buying an existing firm the price will not be a reflection of the physical assets, share prices are valued on the basis of the expected
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