Lincoln Electric

Lincoln Electric

1. Put yourself in CEO John Stropki's shoes. Should Lincoln Electric expand into India by
investing in a major production facility there?
Yes, Lincoln Electric should expand into India by investing in a major production facility. India has shown a phenomenal economy growth rate of around 7% annually since 1990-91. India is also the second most populated country of the world which makes it a rich source of supply of qualified manpower and also a big market for the finished products. A country-wide analysis needs to be done to make the investment in India profitable both in the short and long term. The most apt tool for this is PESTEL analysis.
P – Political
E- Economic
S- Social
T – Technological
E- Environmental
L- Legal

P- Political: Political situation in India has been stable over the past decade. Mr. Manmohan Singh has been the Prime Minister for about a decade and his congress party have been providing stable government in the parliament of India. There has been no political crisis in the country in past couple of decades. There has been some problem of bureaucracy and red tapism in the past but that has reduced significantly over the past years but at some areas it still exists. The company should take care the key authorities in the government are roped in so that the investment & expansion process is not hampered due to bureaucratic interference.

E- Economic: The economic situation in India is stable as the money market is controlled by it’s central bank knows as Reserve bank Of India. The country is also almost immune to external shocks of economic slowdown in any other part of the world due to wide government control over the market. The government agencies just act as a regulator and ...
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