Going Global-Issues in International Business Case Study

Going Global-Issues in International Business - Case Study simulationStropki as the president, chairman and CEO who was the seventh chairman of the establishment. The operating income and net income of the organization increased signifi rottertly in the year 2005. The CEO introduced several strategies to expand their businesses in global market place. The study allow for discuss about the issues associated with business expansion strategies in global market place. Global Welding diligence Welding is the most supporting activity in several industrial activities. Any two metals can be effectively or steadfastly joined through welding process. Arc welding is considered as the predominant method of welding. However, as of 2005, the welding industry became a 13 billion US long horse industry. Welding products play a key part in development of several important and strong structures around the globe. Welding products are highly required in civil and mechanical field. Day-by-day, the production and gross revenue of welding products are increasing due to intense market demand around the globe. North America, atomic number 63 and Asia Pacific are the major regions of welding industry. Global Strategies and Issues The first major global expansion of capital of Nebraska Electric Company occurred between 1986 and 1992. The organization established 22 different manufacturing plants in 15 emerging countries around the globe during this period. The organization purchased the assets from an Australian organization named Air Liquide in the year 1987. The organization followed war-ridden business expansion process based on their enormous success in US market. The organization followed aggressive encyclopaedism process in Brazil, Norway, Scotland and Mexico. However, these acquisitions have resulted huge operating losses. In spite of economic business operation in US market, losses in international market place compel the organization to borrow money from different ent ities to distribute rewards and bonus for the US employees. In terms of acquisition process, the organization undertook several in adequate decisions. It is true that economic condition, access to market and resources cannot be alike(p) in each and every country. Wrong market information and lack of in-depth primary research in international markets forced them to redefine their strategies after a certain period of time. The organization developed a series of determined financial goals, but the organization still depended upon its market growth rate in US to meet these organizational goals. Issues in Japanese, South Korean and Chinese Market The company approach several problems in selling the products in several emerging Asia Pacific countries, such as Japan, chinaware and South Korea. The distribution of the organization in Japan was very limited. Lincoln Electric Company did not have any kind of access at the commodity end of the Japanese market. In accessory to this, the org anization had limited after sales support capability and limited in-country demonstration service induction in Japan. Therefore, it was difficult for the organization to achieve high-tech sales growth. The products of the organization sold in Japanese market as niche products for small groups of customers. The organization suffered from huge operating losses due to this factor. inadequacy of manufacturing plants, limited access to the market, improper decision, making strategy affected the business performance of the organization in Japan. In addition to this, the products were not optimized for effective and required application in Japan. Actually, the