...Lincoln Electric Case Analysis Situation: Through the year 1974, the Lincoln Electric Company experienced rapid growth in net income and overall sales. Though a small company, Lincoln Electric was able to dominate the welding market by focusing on reducing costs and raising quality. These goals were achieved by rewarding employees with an innovative financial incentive program. Lincoln Electric paid their employees a base salary that was slightly lower than market. However, all employees were included in a merit-based profit sharing program. This program rewarded hard-working, efficient, and quality-conscious employees with big bonuses that could potentially equal up to 100% of their full-time salary. After having gone through an initial work probation period, all employees were guaranteed employment. One of the founders of the company, James F. Lincoln, believed that competition was a fundamental foundation of employee development. He set up a system that would reward the hardest working and most efficient workers with large financial prizes. The workers were encouraged to skip smoking breaks, take short lunches, and work as quickly as possible, while still paying attention to quality standards. Though challenging, the work environment was viewed favorably by the employees who were interviewed for this case. All respondents admitted that there were serious deficiencies in the system, but that it was generally favorable. The employees accepted that...
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...The purpose of this case analysis is to analyze the culture of Lincoln Electric Company. According to Harvard Case Study by Arthur Sharplin, this company is the world’s largest manufacturer of welding machines and electrodes. Let’s look at the Continuing Influence of the Founders of the Company. John C. Lincoln business was incorporated but in 1906 and he expanded his workforce to 30 and sales grew to over $50,000 a year. James F. Lincoln joined the company still small and he became the General Manager and Vice –President of the company. Employee morale and productivity remained with higher profits and bonuses and Lincoln’s market share is stable. When the advisory Board came into power, between 1915 and 1917, a paid-up life insurance policy was given by the company to the employee and a welding school was begun. In 1918, an employee bonus was attempted. In 1919, the Lincoln Electric Employees’ association was formed. In addition, the Board of Directors voted to start a suggestion system in 1929. The legendary Lincoln bonus plan was proposed by the Advisory Board and accepted on a trial basis by James Lincoln in 1934. The golden rule emphasizes on James Lincoln’s Christian ethics which he says “Treat People as you would like to be Treated” “In his words, he says if the Christian ethics control our acts, the savings in the cost of distribution will be tremendous.” In his view, the customer should always come first. Lincoln’s Incentive Management Plan was defined by the company’s...
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...permission policies, is available at http://journals.informs.org/. Labor Market Institutions and Global Strategic Adaptation: Evidence from Lincoln Electric Jordan I. Siegel, Barbara Zepp Larson Harvard Business School, Harvard University, Boston, Massachusetts 02163 {jsiegel@hbs.edu, blarson@hbs.edu} A lthough one of the central questions in the global strategy field is how multinational firms successfully navigate multiple and often conflicting institutional environments, we know relatively little about the effect of conflicting labor market institutions on multinational firms’ strategic choice and operating performance. With its decision to invest in manufacturing operations in nearly every one of the world’s largest welding markets, Lincoln Electric offers us a quasi-experiment. We leverage a unique data set covering 1996–2006 that combines data on each host country’s labor market institutions with data on each subsidiary’s strategic choices and historical operating performance. We find that Lincoln Electric performed significantly better in countries with labor laws and regulations supporting manufacturers’ interests and in countries that allowed the free use of both piecework and a discretionary bonus. Furthermore, we find that in countries with labor market institutions unfriendly to manufacturers, Lincoln Electric was still able to overcome most (although not all) of the institutional distance by what we term flexible intermediate adaptation. Key words:...
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...CHAPTER IINTRODUCTION 1.1 Background of Case Study Selection Compensation is the remuneration received by an employee in return for his/her contribution to the organization. It is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees.Researcher are interested in doing research on the company becauseresearcher wanted to learn more about control system especially managementcompensation, both theoretical and practical. Lincoln Electric Company one of companies has realize the method of control system especially managementcompensation in their company.In the Lincoln Electric Company, researcher get knowledge of control systemespecially management compensation, particularly its association with corporate profits. However, in its application is often the application of compensation hasexperienced various problems and constraints. So also happened in the LincolnElectric Company.Every company absolutely has a strategy to sustainable them company. The top priority of Lincoln is customer. Company always sensitive with consumer needs.Certainly, the firm’s customer wants to get the best price and the best quality. And, product of Lincoln fulfill it. Lincoln also concerns employee and stockholders needs.Management compensation always was determined by a wage survey of similar jobsin Cleveland area where the company do operational process. Lincoln ElectricCompany is a good example for other company which is concern...
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...The Lincoln Electric Company An inventor by the name of John C. Lincoln designed and developed the electric motor in such a way that it could not be topped by any competitor; however, his passion for inventing kept him from wanting to manage the company he created. So in 1907 John hired his brother, James F. Lincoln, to manage the plant and this is when it all started, the success and growth of a billion dollar company. The Lincoln Electric Company, the world’s largest arc-welding manufacture and top producer of industrial electric motors, now employees over 4000 people and sales have topped $1 billion. But, how did they gain this overwhelming prosperity? Many have tried to figure it out, even studies have been conducted on Lincoln Electric’s organizational structure, James’ incentive management practices, and the keys to their success, and still no one has mastered it. They still operate today the same way they did year’s ago and it is working...for them. However, what does the future hold for Lincoln Electric? Will they be able to keep up with their high demand of productivity without lowering employee job satisfaction? We will examine different factors of Lincoln Electric such as the companies communication between employees, their problem solving techniques, and their conflicts, but the two most important factors we will analyze are: The incentive reward system - Its pro’s and con’s An effective organizational change process to position the firm’s incentives...
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...Lincoln Electric expansion to India Name Institution Affiliation Date Market entry strategy involves the essential requirement for a company to get into international level. The need of involving other companies whereby two companies join together is referred to as joint venture entry. They get into a similar market and make the same production with the aim of sharing risk and at the same time they share the profit according to their terms of agreement (Kretzberg, 2007). Therefore, Lincoln Electric Company has a chance to join with other company to venture in the Indian market. Through the joint venture strategy in Indian market, Lincoln Electric has a chance of attracting wider market share in the region. The major consideration is done through extensive study of the market situation through various considerations. Market environment has a wide consideration depending on the factors such as political, social and economic integration. The basic considerations that Lincoln Company has to consider are directed in achievement in the market increase (Hastings, 1995). Concerning the Indian market structure, introduction of welding company is essential in reference to the technological improvement. The factors concerning the technology in the region, it covers the different aspects especially in developing market. While considering joint venture strategy in international market, the major considerations are made depending on business environment. This involves political...
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...9-707-445 REV: AUGUST 25, 2008 JORDAN SIEGEL Lincoln Electric Introduction John Stropki, CEO of Lincoln Electric, returned home from Mumbai to company headquarters in Cleveland, having sampled the local Maharashtran delicacies while studying opportunities in the Indian market. From his vantage point in 2006, Stropki looked back on his company’s more than 100 years in the welding equipment and consumables industry with pride, wondering whether a strong push into India should be the next step in his company’s globalization. An India expansion had been considered for several years, but thus far the company had focused on growing its operations in China and elsewhere around the globe. If Stropki were to approve a significant allocation of resources toward an India expansion, he wondered what would be the best way to enter. He had a wealth of company lessons and experiences to apply to the India investment decision, as his company had had international operations since the 1940s, had struggled internationally in the late 1980s and early 1990s, and had gone on to regain its global competitive advantage in the late 1990s and early 2000s. During Stropki’s tenure as CEO since 2004, the company had further expanded globally and by 2006 owned manufacturing operations in 19 countries across five continents. Most recently, the company had enjoyed increasing success in China as a result of its aggressive expansion through both a joint venture and set of majority-owned...
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...Syllabus MGT 496 Strategic Management and Policy, Spring 2016 Instructor: | Dr. Jim Sundali | Office: | 401D Business Administration | Class: | MW 1:00 & 4:00 in AB 102 | Office Hours: | MW 11:00-12:45 | Phone: | 775-682-9176 | E-mail: | jsundali@unr.edu (best way) | Web Site: | http://www.business.unr.edu/sundali/ | WebCampus: | http://wcl.unr.edu | Catalog Description Emphasis on the application of knowledge from all functional areas of business to organizational problems and the formulation and implementation of organizational strategies. (Major Capstone course.) Prereq(s): CH 201; ENG 102; FIN 301; MGT 323; SCM 352; junior or senior standing. Course Overview The theme of this course is the development and implementation of strategic missions, plans, objectives and tactics. You will develop strategic plans and engage in strategic management. We will integrate the knowledge you have acquired to this point in order to develop an understanding of how an entire organization functions and give you an opportunity to develop and exhibit your management and leadership abilities. Prerequisites: IS 301, FIN 301, MGT 323, SCM 352, and MGT 325 or ACC 460 Course Learnings Objectives MGT 496 is a University Capstone Course and will also serve as the coordinating course to satisfy the Ethics component of the Silver Core Curriculum. As such this course will satisfy the following three Core Objectives (CO): * CO12 Ethics: Students will...
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...Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of...
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...Formulation and Implementation MBA 980 Spring, 2009 Professor Jay Dial Office 860 Fisher Hall Email dial.12@osu.edu Phone 292-5438 Reading packet There is a required reading packet available at Uniprint-Tuttle Park that includes course readings, cases and lecture notes for classroom discussion. This is copyrighted material and each student must purchase an individual copy of the reading packet. Additional highly recommended readings will be selected from Management Skills: A Jossey-Bass Reader (ISBN # 0-7879-7341-6). It is available from both BarnesandNoble.com and Amazon.com. Course Overview This course is about the creation and maintenance of long term value for the organization. It is concerned with both the determination of the strategic direction of the firm and the management of the strategic process. The course builds on prior studies of functional areas while recognizing that most real business problems are inherently multi-functional in nature. Thus, this course employs an explicitly integrative approach in which we adopt the role of the general manager who has the responsibility for the long-term health of the entire organization. The course would be taught primarily through the case method of instruction. Course Objectives 1. Understand the nature of strategic competitiveness and develop the ability to analyze the competitive environment facing a firm, assess the attractiveness of the industry and isolate potential sources of...
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...Contents Contents ........................................................................................................................................ 1 1 Abstract: ................................................................................................................................ 2 2 Introduction: ......................................................................................................................... 4 3 Competitors:.......................................................................................................................... 6 4 S.W.O.T. Analysis: ................................................................................................................ 11 4.1 Strengths: .................................................................................................................... 11 4.2 Weaknesses: ................................................................................................................ 12 4.3 Opportunities: ............................................................................................................. 13 4.4 Threats: ....................................................................................................................... 14 5 Undergone changes and their main implications: .............................................................. 15 6 Lessons learned: ....................................................................................................
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...LEADERSHIP IN ORGANIZATIONS(Draft Syllabus) B01.1302.25 Spring 2010 Professor R. Kabaliswaran Office: KMC 7-56 E-mail: rkabalis@stern.nyu.edu Office Hours: 11:30 AM– 1:00 PM on class days and by appointment Class Hrs: Wed 1:30-4:20 PM on Jan 27; Feb 3, 10, 17, 24; Mar 3, 10, 24, 31; Apr 7, 14, 21, 28. Due Dates Team Case Write-up: 2/24. Final Team Project : 4/28. Indiv Take Home Final: 5/2. ____________________________________________________________ _________________ Course Overview Welcome aboard! What do leaders do? What happens inside organizations? And how do these relate to each other? In a nutshell, that’s the stuff this course is made of. Business organizations of all types face chronic management problems that pose significant challenges to them. These problems include the difficulty of designing organizations capable of coping with highly dynamic business environments, the challenge of developing strategies and structures for hypercompetitive conditions, the greater complexity of managing global enterprises, the difficult task of shaping a corporate culture, managing politics and conflict between individuals and organizational units, motivating employees who are more mobile than ever, designing attractive incentive systems, managing and harnessing intellectual capital, and so on. Such challenges and how the top leadership can deal with them are the subject of this course. The course has two major components. The first is “macro” in nature. It focuses on organizational...
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...Research in Transportation Business & Management 10 (2014) 40–44 Contents lists available at ScienceDirect Research in Transportation Business & Management Transferring low-cost marketing practices from air to rail services: The Ouigo case Paul Chiambaretto a,b, Anne-Sophie Fernandez c a b c MRM-Groupe Sup de Co Montpellier Business School, 2300 Avenue des Moulins, 34080 Montpellier, France Ecole Polytechnique, PREG-CRG, Bat. Ensta, 828 Boulevard des Maréchaux, 91762 Palaiseau, France MRM-ERFI, University of Montpellier 1, Espace Richter, Rue Vendémiaire, Bât. B, CS 19519, 34960 Montpellier Cedex, France a r t i c l e i n f o Article history: Received 24 October 2013 Received in revised form 11 May 2014 Accepted 12 May 2014 Available online 29 May 2014 Keywords: Low-cost High-speed train Replication strategy Intra and intermodal competition a b s t r a c t More and more airlines have adopted a low-cost business model and many scholars have studied the characteristics of such marketing strategy. While other transport modes have decided to copy and adopt this strategy, we investigate how they replicate this business model. To do so, we in-depth study the operational and marketing characteristics of Ouigo, the new low-cost offer launched by the French rail operator SNCF in 2013. Based on interviews and secondary data (press articles, reports, etc.), we analyze how the rail operator has adapted the low-cost model used by airlines to the...
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...includes interruptible loads in the probabilistic assessment of the operating reserve in isolated and interconnected generating systems. This technique is then used to evaluate the magnitude and corresponding maximum allowable time delay of load interruption required to reduce the unit commitment risk in the absence of other capacity adjustments. They also present a probabilistic technique which can be used to evaluate the inherent interruptible load carrying capability of an isolated and interconnected generating system which exists without having to commit any extra units other than those required to carry the firm load. The study provides an insight into load interruption and its effect on the system risk. The techniques developed are illustrated by numerical examples. These techniques can be used in short and medium term operational planning Electric Power Systems Research Volume 18, Issue 2, March 1990, Pages 99–103 Microprocessor based on-line assessment of the operational reliability of a longitudinal power supply system * A. Chakrabarti, * A.K. Mukhopadhyay * Electrical Machines and Power System, Department of Applied Physics, Faculty of Technology, University of Calcutta, 92 Acharya P.C. Road, Calcutta 700 009 India * Received 23 October 1989. Available online 13 February 2003. *...
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...higher quality expected as well as the extensive research and documentation required for government contracts. If a part fails to perform correctly it can cause minor glitches as well as problems that can carry serious repercussions, such as in the National Semiconductor case. When both the culpable component and company are found, the question arises of how extensive these repercussions should be. Is the company as an entity liable or do you look into individual employees within that company? From an ethical perspective one would have to look at the mitigating factors of both the employees and their superiors along with the role of others in the failure of these components. Next you would have to analyze the final ruling from a corporate perspective and then we must examine the macro issue of corporate responsibility in order to attempt to find a resolution for cases like these. The first mitigating factor involved in the National Semiconductor case is the uncertainty, on the part of the employees, on the duties that they were assigned. It is plausible that during the testing procedure, an employee couldnt distinguish which parts they were to test under government standards and commercial standards. In some cases they might have even been misinformed on the final consumers of the products that they tested. In fact, ignorance on the part of the employees would fully excuse them from any moral responsibility for any damage that may result from their work. Whether it is decided that...
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