The following paper entitled 'The Lincoln Electric Welding Company in Shanghai' focuses on the first manufacturing venture of Lincoln in China. On May 13, 1998, the factory was opened by Anthony A. Massaro, the incumbent Lincoln Electric CEO, and chairman…
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The objective of this study is to review and analyze Lincoln Electric’s international human resources (HR) practices as are affected by the decision to establish a subsidiary in China. Early outcomes and future issues or problems will be discussed. Lincoln initiated a new attempt at expanding in Asia in the mid-1990s, after the shutting down of the Japanese company. This followed the 1995 opening of a new management organization for the company involving new executive positions and complementary personnel to supervise each of the five major strategic locations: Asia, Latin America, Russia-Africa-Middle East, Europe, and North America (Business Week 2003). Michael Gillespie is a British national and having associated with Lincoln from ESAB, the major competitor of Lincoln in Europe and Asia, was assigned head for the Asian region. Asia was at present a primary target of the company and Gillespie was summoned by Massaro to develop an innovative and competitive approach for the region (Business Week 2003). The plan of Gillespie was to build regional competencies and create a unified manufacturing business and sales with Asia (Briscoe & Schuler 2004: 428): The intention was to stop regarding the Asia Pacific as a market to which we could export, to which we could sell our surplus production. So what we tried to do was to bring Lincoln to Asia rather than just sending American or Australian products into Asia, and decided that the right thing to do was to produce within the region for the region, products that were appropriate to the region, rather than simply trying to sell products that were right for the US or Europe. A regional administrative center was launched in Singapore. The regional office was given the task of managing strategic planning, financial control, and technical support to the production departments. The regional office had a significant level of independence from the head office. The main control comprised monitoring the region’s financial performance.
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...Table of Contents
Table of Contents 1
Contributing Factors at LincolnElectric 2
Understanding of the Factors Responsible for High Performance 4
The companyLincolnElectric was established in the year 1895 and is the leader in the welding business worldwide. The company has its head office in Cleveland in the city of Ohio. It has associations as well as joint-ventures in around 19 different countries. It also has manufacturing units and distribution systems along with sales offices located in over 160 countries. It has above 8,400...
...? General ElectricCompanyCompany History The history of General Electric s back to 1876 when Thomas Alva Edison after visiting an expo decided to open a laboratory at Menlo Park in New Jersey. There the inventor decided to work on several electrical gadgets like dynamos based on which he hit on a brilliant idea of inventing an electric lamp. By the end of 1890 the company named after Thomas Edison was successfully running to produce electric bulbs wherein in 1892 the company merged with another company, Thomas-Houston, to help form the modern General...
....572). These companies assert that if employees are well taken care of, they will do their jobs better, and doing so benefits customers and shareholders. LincolnElectric is the top company that designs, develops, and makes arc-welding products, robotic arc-welding equipments, and plasma and oxyfuel cutting tools. It also leads in the brazing and soldering alloys industries. Lincoln owns 40% of the U.S. market share. Moreover, it provides its employees with a well-known Lincoln Incentive Management Plan, which results to above-industry-average productivity (Schuler, 2012, p.559). In 1995, the...
...The LincolnElectricCompany (LincolnElectric) is in the arc welding and cutting industry (The LincolnElectricCompany online). PESTEL analysis (O'Conor, 50) and Michael Porter's (137-45) five forces analysis will be used to analyze this industry's international factors and the oversea markets.
Factors in the political environment that affect the cutting and welding industry include political uncertainty in countries such as Venezuela and international terrorism. Factors in the economic environment are the costs and availability of energy and raw materials. The...
...LincolnElectric Case Study Table of Contents LincolnElectric Case Study Table of Contents 2 Introduction 3 Whether Lincoln follows a hierarchicalor decentralized approach to management- explanation and examples 3
What makes the Lincoln System so successful in the United States 4
Problems while transporting the Lincoln Control System to other national cultures 4
Whether Lincoln should borrow and pay bonus in order to avoid breaking trust with its US workers 5
This project aims to bring forth the reasons as to why a company that had operated successfully in the home country has failed to perform equally well in a foreign land. Difference in culture of the two countries has been interrogated... in this...
...LincolnElectric case study
LincolnElectric follows a hierarchical management system. In a hierarchical system, there is a strict distinction between the different levels of management within the organization, with each level or hierarchy concerned with the functioning of that level only (Armstrong, 2006). The power and responsibilities associated with the management of the organization converge from the workers upward toward the president or executives of the company (Armstrong, 2006), so that the workers are at the lowest stratum and the president or the managing executives at the highest stratum (LincolnElectric, 2010). This holds true... for ...
...to match these changes. Cultural and sociological changes would also have to be considered as the company expands in other continents where differences are bound to exist. The company will have to plan keeping these differences in mind. Adopting a geocentric approach would be best if the company wants to be successful and respected at the same time.
9. Discuss the importance of LincolnElectric to build a strategy for each of Porter’s Five Competitive Forces.
Since arc welding is a very generic process, the company can build an entry barrier by technological innovation if it gets patents and copyrights like it did with...
...LincolnElectric Question From the case of LincolnElectric, the four methods used to gain competitive advantage over their rivals include the following: strengthening production, to reduce the costs of production – then passing the savings to the customer – thus a reduction in prices; capitalizing on adequate incentives and competition to develop the potential of the employees, thus increased innovation and production of rewarding products; the development and the nurture of a strong, knowledgeable, experienced sales team; the integrated manufacturing and sales strategy, which builds on the company’s existing relationships with customers and...
...The General Characteristics of the LincolnElectricCompany
1) LincolnElectric methods for sustaining its competitive edge over rivals has changed especially in terms of the method emphasized. In its early years the company relied heavily on innovation of its own equipment to give it operational advantages. With growth innovation was supported with process efficiency. Process efficiency in this instance was epitomized by the company’s focus on motivating staff to not only increase their productivity but also to come up with suggestions for lowering costs further. These two methods enabled the company...
...LincolnElectricCompanyLincolnElectricCompany is one of the world’s leading manufacturers of welding products and industrial electric motors. It has more than four thousand employees who work in the three factories situated in the United States of America (Buller, & Schuller, n.d). A similar number of employees are employed in other branches of the company located in other countries. LincolnElectricCompany came into existence in 1895 when John C. Lincoln its founder opened the business in a single room. The...
14 Pages(3500 words)Case Study
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