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Lincoln Electric

In: Business and Management

Submitted By rraphael1993
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International Business Strategy

Case Study:
Management focus
Lincoln Electric

Presented by Raphaël ROBIN

Raphaël
ROBIN

Table of content

Introduction ………………………………………….page 2


The beginning of Lincoln Electric ………………..page 3


From the motors to the welders production ……..page 4


Becoming International …………………………....page 4


A new era …………………………………………...page 5


Conclusion ………………………………………….page 6


References ………………………………………....page 6


page 1/6

Raphaël
ROBIN

Introduction

A picture of John C. Lincoln

"The Welding Experts"

Created in 1895 by John C. Lincoln a capital investment of $200 Lincoln with , the
Electric Company is today a world leader in the design, development and manufacture of welding products, archery, robotic systems, equipment oxyfuel and plasma cutting and occupies the first position in the global market for brazing and soldering alloys. Lincoln Electric continuously invests in the development of welding solutions to meet the specific needs of customers worldwide. Choose Lincoln Electric as welding partner is offer your company a wide range of equipment and consumables proven in industrial environments, and designed to meet the most stringent requirements.
Whether you are a locksmith, boilermaker, crane manufacturer, pipelines, wind turbines or oil platforms, choose Lincoln Electric makes sure you have a quality, productivity and maximum profitability. But how do we have managed to become leader in those markets ?

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Raphaël
ROBIN

The beginning of Lincoln Electric

A picture of
James F. Lincoln

The first product of our company was an electric motor of our own design. In 1907,
John C.'s younger brother, James F. Lincoln, joined the Company as a salesman.
The product line had also evolved to include battery chargers for electric automobiles. But the first welding set was made by the Lincoln brothers in 1909. and two years later, they innoveted by introducing the first variable voltage, single operator, portable welding machine in the world. In 1914, James F. Lincoln takes the control of Lincoln Electric to allow his brother to his scientific research. He introduced piecework pay and established the Employee
Advisory Board, which includes elected representatives from every department and has met every two weeks. And one year later, the company's employees were granted a group life insurance. We can already see a management style that's ahead of its time. The Lincoln Electric Welding School was also created which trained more than 100,000 people since 1917.

page 3/6

Raphaël
ROBIN

From the motors to the welders production Following the success of the Lincoln Eletric welding business, which surpassed motors production in 1922, we changed our strategy to focus on innovating in the field of welding. Thus, five years later, we introduced the most successful property
Fleetweld 5 coated electrode. We continued to innovate to continually offer the best materials and managed to create a weld as flexible as steel. At the same moment, with a successful business like ours, we decided to give to employees paid vacations, which was rare at this time. And in the middle of the
1930s, our employees received their first annual Incentive Bonus. With World War II, Lincoln Electric has been able to significantly grow with the huge market of welded ship hulls. The motor production was even stopped to fully devote ourself to the high demand of welding products.

Becoming International Nowadays headquartered in Cleveland, Ohio, Lincoln Electric Group operates over
40 production facilities worldwide. These different factories based in 20 different countries allow global coverage via the network of official distributors and local sales offices in over 160 countries.It beginns in 1936, when William I. Miskoe was sent to
Australia to found Lincoln Electric Company Pty. Ltd.. While we ever were still
The
innovating, this international expansion continued with the construction of a plant in
Rouen, in France, in 1953. And in the 60’s, the motors products were back in the product line. James F. At the same time, Lincoln continued to enhance Incentive
Management, adding a cost of living multiplier, formal merit rating, and guaranteed continuous employment.

page 4/6

Raphaël
ROBIN

A new era Lincoln Electric entered a new era of professional management with the promotions of George E. Willis to president and William Irrgang to chairman in 1972. But in the
1980s, with a less prosperous economic environment, the company saw its sales lowered by almost 40%.

With the document above, we can actually notice some plants were closed, indicating some difficulties during the 80's. So there was a need of reorganization, which took place in 1991 with the installation of a new renovated world headquarters and the foreign operations were consolidated. In 1993, Lincoln Electric and its global reorganization see the demand coming back again under the control of Mr. Hastings as chairman and Frederick W. page 5/6

Raphaël
ROBIN

Mackenbach as president. We achieved our one billion dollar sales goal during our centennial year. Electronic Lincoln is now well established in the global market and continues to expand. In the early 2000’s, we acquired several companies, like Bester SA in 2002 or JW
Harris Co. in 2005, to consolidate our expertise in the fields of welding, of brazing and soldering alloys.

Conclusion

To conclude, we can say that Lincoln Electric can be a model for the manufacturing sector. This is a business where the old values still in force, such as trust, are flexibility and loyalty. Premiums also play a very important role in the functioning of the company and really help to motivate employees who sometimes have their salaries doubled through these bonuses. But we can not ignore the fact that to have been able to develop fully, Lincoln
Electric has had to expand internationally and the company was forced to reorganize in order to improve its profitability abroad and in the world.

References : http://image.slidesharecdn.com/lincolnelectricfinal­131125220125­phpapp02/95/linco ln­electric­case­study­4­638.jpg?cb=1385439115 : actual plants http://www.lincolnelectric.com/fr­fr/company/Pages/company­history.aspx : Lincoln
Electric’s history https://changingwinds.wordpress.com/2010/09/06/why­lincoln­electric­may­be­the­m odel­for­saving­america%E2%80%99s­manufacturing­sector­a­review­of­frank­koller %E2%80%99s­book­%E2%80%9Cspark%E2%80%9D/ : values of the company page 6/6

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