Essay On Lincoln Electric

The Lincoln Electric company, under the leadership of James F. Lincoln saw a major shift in the way business was to be directed and operated with visionary mind-set emulating companies like Ford, Wal-Mart, Merck, 3M as focus was towards the customer’s needs and employee’s compensation. Philosophically customer needs become critical as the reason for being in business and the employees also being the vehicle in achieving the needs of the customers as the case study by Sharplin, A (1989, p.3) clearly positions the companies aspirations. James Lincoln places much importance on the relationship with employees that is guided by mutual respect and individual effort.

What do you think of Lincoln’s emerging international strategy by the mid-1990s? Does this company have a competitive advantage that can be transferred to the global environment? How is Massaro’s recent overseas initiative different from Lincoln’s earlier failed approach?Lincoln Electric: Venturing Abroad

the years to be a global manufacturer of welding products and battery systems. The Lincoln

Established in 1895 and specialized in producing and selling electric motors, Lincoln Electric Company rapidly developed after the movement to welding equipment and consumable welding products in the USA. By 1995, this company first hit $1 billion in sales and became the world largest company in welding industry. With the differentiate strategy by providing premium -price -products , this company got 60% sales in the North American and expanded internationally since the period of 1986 and 1992. Although this company is facing problems in global expansions, its overall strategy as well as practices in human resources, marketing, technology development, and international expansions is a useful lesson for other businesses.

With multi-million dollar, domestic updates and acquisitions in such countries as Italy, China, and Indonesia, Lincoln Electric Company wasted no time by dwelling on its first losses in Lincoln’s history. Lincoln is back on track as the world leader in arc welding, after faltering for only two years. Lincoln is committed to providing substantial value to all of its stakeholders.

Lincoln Electric Company is a manufacturing company, which has been focusing on welding products for the recent 30 years. The company had outstanding brothers leading the company to success. John was a technical genius and he brought the best skills in production and James was good at management and he was working on the employees ' incentives. The company gained its reputation through the world war till present as the welding equipment supplier with higher quality and lower price at the same time. For the production aspect of welding equipment, it is an advanced production line with continuous flow with high flexibility and low idling time.

The Lincoln Electric was founded in 1895, and is the world leader in the design,

Michael Gillespie, The Lincoln Electric Company’s new president for the Asia Region, was “encouraged to develop plans to open welding consumables factories in several Asian countries” by the new CEO, Anthony Massaro, and Gillespie had specifically “turned his attention to plans for Indonesia [O’Connell,[1] main reference, p 1].” We worked with Gillespie to prepare for the September 1996 meeting with Massaro and the presidents of the other worldwide regions. We analyzed Lincoln’s current capabilities and its past experiences and prepared a transformative plan based on business concept innovation [Hamel[2], ch 3], documented by this report, with a three pronged approach for the Asia Region. The first

Elements of Lincoln Electric’s management system that made it so popular in the U.S. such as piece-rate work, bonuses, and

Ans. An Indian expansion through an investment in the major production facility is the most logical step for Lincoln Electric in pursuance of its long term strategic goals. The company needs to be free from its dependence on North American sales; the sales in the North American markets are stagnant whereas other markets especially the Asian markets are growing significantly faster. Its long term financial targets which include sales growth double the rate of growth in worldwide industrial production, operating margins over 15%, earnings

The Lincoln Electric Company is the largest manufacturer of welding equipment in the world. John C. Lincoln founded the company in 1895 and incorporated it in 1906 where he moved it “from his one-room, fourth-floor factory to a new three-story building he erected in East Cleveland.” (Sharplin, 1989, A Historical Sketch pp. 1.). In 1907 John’s younger brother joined the company and in 1914 became the general manager and vice-president. It is here where the company began to define its culture with James instituting an employee elected advisory board who would be tasked with keeping James apprised on the operation of the company. This committee was also to be the voice of the employees to the executive team, a practice that is still performed today with twice-monthly meetings. The incentive programs set forth in these early years have laid the groundwork for sustaining high production levels while engaging employees in the feeling of pride and ownership of their and the company’s success. Many of the original incentive programs have changed little over the years and they continue to influence Lincoln Electric today.

The Lincoln Electric Company has been built on clear and solid ethical principles. The reason for its centenarian success can be found in the fact that the ethic culture of respect and customer orientation fostered by its founder has remained unchanged. James F. Lincoln had a strong Christian background that guided his culture and vision. As he wrote, “The Christian ethic should control our acts. If it did control our acts, the savings in cost of distribution would be tremendous. Advertising would be a contact of the expert consultant with the customer, in order to give the customer the best product available when all of the customer 's needs are considered. Competition then would be in improving the quality of products and increasing efficiency in producing and distributing them; not in deception, as is now too customary. Pricing would reflect efficiency of production; it would not be selling a dodge that the customer may well be sorry he accepted. It would be proper for all concerned and rewarding for the ability used in producing the product” (Lincoln J. F., 1961. p. 64). The culture of the Lincoln’s brothers was centered on satisfying the customer’s needs. Their efforts were not devoted to increasing profits rather to a constant search for cheaper and more effective products that would improve customer’s satisfaction. For the Lincolns customers represented the reason for the company’s existence. He made sure that this philosophy permeated the company until the very last

This combination was the most secret weapon of success behind the advancement of all types of electro welding-Fleetweld 5p and other products were made with workers who were manufacturing these products were working in a very friendly environment within the company as the proprietors appreciated and complimented their efforts with various rewards, not practiced in other companies of similar standards.

Lincoln Electric is a long-standing, successful company. In business for 120 years, they make welders, electrodes and welding accessories. They operate worldwide, and their sales offices cover more than 160 countries.

The continuing influence, employee benefits/incentives, and management styles initiated by company founder John C. Lincoln and James F. Lincoln have built a profitable business for shareholders and employees alike. Let’s, look at Mr. Author Sharplins Harvard Case study and The Lincoln Electric Company webpage to further delineate the styles of organizational culture and how they have established The Lincoln Electric Company as the foremost manufacturer of welding machines and electrodes. (Sharplin, 1989)