Introduction
The purpose of this report is to critically analyze Lincoln Electric Company as a whole. We will extract strategic issues that this business faces and offer our professional opinion on how to best tackle these problems. In this analysis we will be focusing on the company’s financials. After assessing their financial situation, we will address their employees’ satisfaction as well as their compensation. Finally, the management style and Lincoln’s production and manufacturing process will be evaluated.
Financials Analysis – Issues & Recommendations
When assessing The Lincoln Electric Company’s financial position, we decided to look at some financial ratios that indicate strength in categories like profitability, short and long …show more content…
This type of top-down method where the leaders make decisions based on their own ideas and judgements can work well if implemented properly. Middle managers felt communication with Lincoln’s top two executives was generally open and direct; however, some employees found that these executives had too much on their plate. Being responsible for an excessive amount of tasks, without the necessary delegation, can lead to reduced productivity. Ultimately, allowing for bottlenecks within the firm’s production. This type of management style could expedite issues with implementing future change effectively. It may also reduce creativity within business decisions that these two executives are in charge of. Some employees have also recognized that even though their opinions are asked for it was very clear that management made the final decision regarding these issues that are brought forth. Certain problems were even pushed aside by upper …show more content…
The financial analysis indicated that the company has a lower than optimal profit margin. To address this issues we suggested that they either bring in more revenue or look to cut expenses. It is important to keep their employees productive and happy through methods that go beyond provided costly incentives, such as bonuses. The company should look to creating a business environment that fosters productivity and diminishes employee stress and anxiety. This could include introducing more natural lighting and reducing the claustrophobic feel that some of the rooms project. These options would address both the profit margin as well as employee satisfaction. Incentives based on reaching specific targets allow for dishonesty. Changing the company’s compensation method would address this problem. Lincoln should look to implementing hourly pay or salary work instead. Bonuses should also be given based on the business success as a whole as well as seniority. Finally, we suggested that the company allow upper management to delegate some of their tasks to reduce pressure on themselves and open business decisions to the fresh creativity of the middle
The purpose of this report is to critically analyze Lincoln Electric Company as a whole. We will extract strategic issues that this business faces and offer our professional opinion on how to best tackle these problems. In this analysis we will be focusing on the company’s financials. After assessing their financial situation, we will address their employees’ satisfaction as well as their compensation. Finally, the management style and Lincoln’s production and manufacturing process will be evaluated.
Financials Analysis – Issues & Recommendations
When assessing The Lincoln Electric Company’s financial position, we decided to look at some financial ratios that indicate strength in categories like profitability, short and long …show more content…
This type of top-down method where the leaders make decisions based on their own ideas and judgements can work well if implemented properly. Middle managers felt communication with Lincoln’s top two executives was generally open and direct; however, some employees found that these executives had too much on their plate. Being responsible for an excessive amount of tasks, without the necessary delegation, can lead to reduced productivity. Ultimately, allowing for bottlenecks within the firm’s production. This type of management style could expedite issues with implementing future change effectively. It may also reduce creativity within business decisions that these two executives are in charge of. Some employees have also recognized that even though their opinions are asked for it was very clear that management made the final decision regarding these issues that are brought forth. Certain problems were even pushed aside by upper …show more content…
The financial analysis indicated that the company has a lower than optimal profit margin. To address this issues we suggested that they either bring in more revenue or look to cut expenses. It is important to keep their employees productive and happy through methods that go beyond provided costly incentives, such as bonuses. The company should look to creating a business environment that fosters productivity and diminishes employee stress and anxiety. This could include introducing more natural lighting and reducing the claustrophobic feel that some of the rooms project. These options would address both the profit margin as well as employee satisfaction. Incentives based on reaching specific targets allow for dishonesty. Changing the company’s compensation method would address this problem. Lincoln should look to implementing hourly pay or salary work instead. Bonuses should also be given based on the business success as a whole as well as seniority. Finally, we suggested that the company allow upper management to delegate some of their tasks to reduce pressure on themselves and open business decisions to the fresh creativity of the middle