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Lincoln electric business case harvard

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Team particularly William Irrgang, who headed Lincoln from 1965 until 1986, Lincoln had to initiate its foreign expansion plans, when the major Swedish manufacturer of arc-welding products, ESAB started making inroads into U. ESAB was already operating in the countries of Latin America and Far East Asia, apart from its home operations in Europe. Then, it suddenly bought two midsize arc welding manufacturers in the United States. This showed that ESAB had global ambitions and importantly wanted to make incursions into the U. domestic market, thereby capturing a sizable market share from Lincoln.

To check ESAB growing influence, Lincoln “decided to take the battle to ESABs markets in Europe and Latin America. ” (Hastings 1999). Thus, to avoid over dependence on the domestic market particularly during tough financial times, to avoid saturation effect in the market, to aggressively compete with its competitor and also to look for potential opportunities in the foreign market, Lincoln decide to launch its foreign expansion plans. Thus, in 1986, after Irrgang died, his successor George E. "Ted" Willis, “dreamed of Lincolns becoming a global power. ” (Hastings 1999). As mentioned above, Lincoln was able garner sizable market share, and achieved the tag of a successful company, mainly because it delivered quality products.

They are able to do that by having optimal organizational processes, which was fully complemented by effective work force. The work force was skilled and experienced to come up with innovative and quality products in quick turnaround times. Their efficiency was further optimized by motivation programs, particularly the Lincoln’s incentive system. That system combined a bonus with piecework – “the practice of paying each factory worker on the basis of how many units he or she produces instead of hourly wages or salaries. ” (Hastings 1999).

It is still an integral part of Lincoln’s culture and so bonuses to the employees constitutes more than 50% of employees annual incomes. With this system, making employees at Lincoln “rank among the highest paid factory workers in the world”, they have highest motivation levels and so they contribute heavily, without the need for anyone pushing them all the time. As mentioned in the case study, employees “act like entrepreneurs” and does not require much supervision.

Thus, the foreman-to-worker ratio at Lincolns main U. plants is just 1 to 100, while in a typical manufacturing

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preview essay on Lincoln electric business case harvard
  • Pages: 9 (2250 words)
  • Document Type: Essay
  • Subject: Business
  • Level: Undergraduate
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