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The use of telecommunication services

The adoption of a global ERP system with subsequent modifications to meet the various local environments would go a long way in enhancing better expansion of Lincoln’s operations all over the world. The use of Internet services would also increase the effectiveness of the organizational communication and this way, more knowledge will be shared for greater productivity. The use of e-commerce.

E-commerce has become increasingly popular in many organizations today due to the improved utilization of Internet technology (Wang, 2008: pp. 529-557). It helps to integrate fundamental changes in the company’s practices without altering the organization’s traditional practices. Since there is no fixed model for e-commerce, it is up to the companies to curve out their own niche in the practice of online marketing and promotion of its products or services.

The availability of Internet services to the supposed customers especially when targeting customers in the developing countries is a major point which should be put into consideration before venturing into e-commerce (Treibimaler & Strebinger, 2008: pp. 479-498). It is also important to consider the cost of adopting such a practice as well as the different national and international regulations in regard to the use of Internet services. E-commerce would be a

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very profitable IT solution for Lincoln Electric in its plan to market its products and expand internationally.

Also read about importance of commerce in moderm world

However, the company must put into consideration the mentioned factors before adopting e-commerce in order to ensure that the impacts of different infrastructures especially when the company expands into the developing countries as well as the cost changes which come with such expansions are well taken care of to ensure maximum profits (Muhattam &Deegan, 2008: pp. 850-872). Electronic data exchange. This is another business practice which utilizes IT to manage data in an organization. Different countries impose different requirements on multinational organizations in regard to data exchange.

Many organizations are often afraid that by implementing EDI, they are likely to lose control or authority over the company’s information. If a company lacks the will to change its purchasing processes for fear of harming its supplier and fear of sharing its data with other international partners then, Electronic data exchange implementation for the company is largely inhibited (Soderlun, Vaagasar & Andersen, 2008: p. 520). At Lincoln Electric, the implementation of EDI would produce some tremendous changes because LE mostly depends on the local suppliers for the supply of all its consumables which include electrodes and welding wires.

In this case, if the company decided to change this trend and purchase its main products from the common suppliers, it would highly benefit from lower costs of manufacturing and its revenue would highly increase. More so, the use of EDI would enable the company to locate the best suppliers round the globe from whom it would buy quality products for its manufacturing processes at cheaper prices. However, adoption of EDI in countries which have different infrastructures and regulations which might serve as barriers to the implementation process must be put into some serious considerations to avoid making blunders.

Telecommunications is a modern technology which unlike radio, it provides a high band width and greater mobility to its users. Lincoln needs to take advantage of this new technology in its expansion strategy in order to improve its means of communication internationally. However, the company has to first overcome the challenge of ensuring that all the network services which will be required in future will be easily available.

Considering the fact that one of the major successes and strengths of Lincoln Electric lies in its customers, the utilization of the high bandwidth provided by telecommunications in its e-commerce operations will ensure that the company earns maximum confidence and trust from its customers all over the world. Telecommunication services will also ensure that the company is able to access the needs of its customers through online chats and emails and address them immediately to increase the customer’s satisfaction (Michael, Bowen & Johnson, 2008: p.4).

Open communication has been a core value in the company’s organizational culture and the use of these new technologies will help to promote communication while at the same time, it will help to remove the geographical barriers which hinder business growth. Telecommunication services are best suited to help the company in supporting e-commerce, Internet accessibility in remote areas, client/server applications and other intranet applications (Subramoniam, 2008: pp. 44-48).

For this reasons, telecommunication is a very profitable infrastructure for Lincoln’s future expansion plans. Communication infrastructures. In order to succeed in its expansion into the developing countries where telecommunication networks tend to vary widely and wired means of communication is poor, it is advisable for Lincoln Electric to invest in data communication infrastructures which will assist the e-commerce services and improve open communication within its businesses.

Since most of the existing wireless networks in the developing nations are voice networks, LE would require a wireless local loop to incorporate all its data into the wireless voice networks. This loop is a technology which uses radio signals instead of copper wires to connect subscribers to the public network (Rouskas, Kikilis & Ratsiatos, 2008: p. 1177). A network management system. As discussed above, LE’s expansion processes will involve the incorporation of many new networks and increased bandwidths.

Some of the networks which Lincoln will require include web-browsing, e-commerce, emails, click-to-talk, video conferencing among others. To manage these networks effectively, proper management will be required. Band width management is aimed at ensuring quality of the services offered, management of the policies, charge-back and tools for packet shaping. This will go a long way in solving most of the bottlenecks in the company. Conclusion. Lincoln Electric is one of the most successful companies which has effectively mastered how to use an incentive or reward system to motivate its employees.

This system has earned the company many benefits and put it on the global map due to its huge business success. However, LE has had its share of problems especially when the company tried to expand internationally in the late 1980s and the early 90s due to the assumption that the incentive system which has worked well in the U. S would work well elsewhere in the world. This problems mainly emanated from the leader’s overconfidence in the incentive system, inadequate international experience and lack of sensitivity to the diverse cultures all over the world.

From this expansion problems, LE has learnt some tough lessons (Hastings, 1999: p. 175). To compete globally, Lincoln Electric requires more money, human resources and time. The company has to invest quality time in studying the cultural values and labor trends of the countries in which it wishes to expand in order to know how best to modify its incentive system and organizational culture to be more culturally sensitive and fit the local environments.

The company has learnt to be more responsive to local cultures of the countries in which they wish to expand. It has learnt to modify its incentive system slowly to fit the need of local cultures and so far, the company has managed to effectively expand its operations in Canada, Australia, France among others. LE now has a team of internationally experienced managers and is fast thriving into the realm of globalization with a better view of both its threats and future opportunities.

It can thus be concluded that, despite the many challenges which LE has experienced in its expansion plans as a result of its incentive system and organizational culture, the company is headed for greater success in the future since it has learnt a great deal from the challenges.


Ahuvia, Aaron. (2008). If money doesn’t make us happy, why do we act as if it does? Journal of Economic Psychology, 29 (4), 491-507. Retrieved October 13, 2008, from, Business Source Premier. (AN: 33386536).

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