...BUSI 1317: Srategic management | Lincoln Electric | The Welding Industry’s Titan | | | | 1st December, 2014 ABSTRACT The purpose of this paper is to analyze Lincoln Electric’s overall strategy and business model and evaluate how generalizable is the company’s business model in other industries, specifically focusing on feasible strategies for one of the fastest developing country, India. | Contents Lincoln Electric’s Background 2 Recent Reporting 2 Main Features of the Lincoln Electric Business Model 2 Company Philosophy 2 Overall Strategy 3 Compensation, Leadership and Communication 3 How generalizable is Lincoln Business Model to other industries? 4 How generalizable is the Lincoln’s approach to India? 5 Employment System 5 Incentive System 6 Conclusion 6 Appendices 7 Exhibit 1: Hofstede's Dimensions Comparison - India & USA 7 Exhibit 2: India and U.S GDP Comparison 7 Bibliography 8 Lincoln Electric’s Background Lincoln Electric Company is the largest manufacturer of welding equipment in the world and has been in existence for over 100 years since 1895. The founder, John C. Lincoln started the business selling his own designed electric motors with the $200 he made from redesigning Herbert Henry Dow’s engine (Paul F. Buller, 2006). The company grew steadily, and in 1906 sales rise to $50,000 a year. John expanded his work force and in 1907, his brother, James F. Lincoln joined the company as a senior manager and introduced...
Words: 2042 - Pages: 9
...war’s outcome to many factors, some of which include Lincoln’s superior leadership, the South’s failure to diplomatically secure foreign intervention, emancipated slaves enlisting in the Union army, and the military strategies employed by the North’s generals. Both the Union and Confederacy expected a quick victory, each believing it possessed several advantages over the other. In the end, however, the North’s overwhelming superiority in manufacturing and industry proved to be far too great a hurdle to overcome by the South’s agricultural economy. While the consensus seems to be that there was no single contributing factor in the War’s outcome, there are several that should be highlighted, beginning with Lincoln’s leadership role. Lincoln’s chief priority from the beginning of his presidency was to preserve the Union. The way in which he achieved this was through skillful use of executive power provided by the Constitution. In the secession crisis, Lincoln relied on the prerogative element in the executive power to prevent the destruction of the government. His decisive action marked the first steps pointing to the reinauguration of the national authority and reconstruction of the Union in order to augment and perfect the principles of the founding (Belz par. 53). Once national authority was established, Lincoln would later use his presidential powers successfully and effectively through the emancipation of slaves; a strategy which would serve the Union well when Lincoln permitted...
Words: 992 - Pages: 4
...April 15, 1865 the sixteenth president of the United States of America took his last breath after being assassinated by John Wilkes Booth. Being the first president successfully assassinated in the United States of America would be enough to put Abraham Lincoln’s name in the history books, however his life is equally remarkable. Lincoln’s reputation as a strong leader has stood the test of time from his career as a politician and lawyer to the president who preserved the union during a crucial turning point in our nation’s history. Lincoln’s unquenchable thirst for education and self-improvement formed the foundation for the leader he later became (Austell, 2006). Lincoln’s stepmother, Sarah Bush Johnston, was the first person in his life that understood the importance of education and encouraged Lincoln in his educational efforts (Herndon & Weik, 1888). Lincoln’s quest for knowledge was a lifelong journey that continued throughout his career as a lawyer and a politician, and helped him to earn the trust and admiration of colleagues and friends (Alvy & Robbins, 2010). Lincoln’s first office for the federal government was as postmaster at New Salem followed by multiple terms in the Illinois state legislature. Over time Lincoln’s influence within the Illinois legislature grew, in large part due to his ability to draft bills and laws (Burlingame, 2008). It was during his first term in the Illinois legislature that Lincoln was first encouraged to study law by John Todd Stuart, a...
Words: 3117 - Pages: 13
...circuit of courts for many years. According to his law partner, "his ambition was a little engine that knew no rest", proving that Lincoln portrayed leadership to everyone who knew him (Freidel and Sidey, 2006). Lincoln’s vast array of leadership qualities are demonstrated in the book “Lincoln on Leadership: Executive Strategies for Tough Times” by Donald T. Phillips. The purpose of this book is not only to teach leadership, but to demonstrate it. According to Phillips, “the life of Abraham Lincoln, especially his presidency, demonstrated that he possessed all of the great leadership qualities […] such as honesty and integrity, empathy for the common man, and devotion to the rights of individuals” (Phillips, 1992). Phillips lists the different principles that Lincoln lived by, and then gives examples from Lincoln’s life that exhibit them in action. The fifteen principles that Lincoln lived by included ‘get out of the office and circulate among the troops’, ‘build strong alliances’, ‘honesty and integrity are the best policies’, ‘never act out of vengeance or spite’, ‘lead by being led, ‘set goals and be results-oriented’, and ‘influence people through conversation and storytelling’. In the first chapter, which expanded on the principle of ‘get out of the office and circulate among the troops’, Phillips tells the reader about Lincoln’s time as President. Since the Civil War was occurring at...
Words: 1103 - Pages: 5
...1. Why did Lincoln’s early international expansion efforts fail? I think that the main reason why Lincoln’s early international expansion efforts fail is that company has lack of international experience. Therefore they made a lot of mistakes while they were trying to expand the company’s international manufacturing presence. The first mistake was that they tried to implement their incentive system instead of the system that existed in acquired plants. Willis didn’t take into account the cultural differences between countries. For example, European managers and workers were philosophically opposed to piecework and seemed to value vacation time more highly than extra income from bonuses. I think that for implementing new incentive scheme Lincoln also chose wrong mode of entry into European market. Afterwards European plants went into troubles. Another mistake was that corporative executives paid little attention to their subsidiaries; the whole company became very decentralized. HQ didn’t know real causes of troubles in their plants and deemed that their incentive scheme would increase productivity and solve their financial problems, it was also low level of collaboration between plants. After that the headquarter of company realized full scale of troubles and tried to assemble an International Strategic Liaison Team to analyze the foreign operations. In this step they also made a mistake. Instead of assembling this team from managers which were aware of situation In European...
Words: 511 - Pages: 3
...in most of the changes that happen during the War, For example the political and social issues, and the slaves that were liberated in the south. In this book McPherson tells us that president Lincoln was a conservative and a revolutionary. The War made Lincoln very popular because of his leadership ability and strategy. He is the most important president who fought to keep young stay whole. James McPherson best known for his prize winning book “Battle cry of Freedom,” which was the New York Times Book Review called one of top history writing. It is an account of the Civil War, which McPherson gathered in a sweep of events, which accounts the political, social, and culture aspects during the Civil War. In Abraham Lincoln and the Second Revolution, McPherson takes a different style of writing by offering a series of engaging essays on Lincoln and the Civil War that have rarely been discussed in such depth. McPherson displays his insight prose as he thoroughly examines the critical- themes of American history. He examines the President’s role as commander- in -chief of the Union forces explaining how Lincoln forged a national military strategy for victory. He exposes how Lincoln used parables and figurative language to communicate the purpose of the War as well as a new meaning of liberty for the people of the North. The title derives from McPherson, examining the Civil War as America’s second revolution. He describes...
Words: 1037 - Pages: 5
...What is Lincoln Electric’s strategy? Lincoln Electric’s strategy relies on its low cost to manufacture and low overhead. The company has been able to achieve this by continually improving its labor productivity. Its innovative management style and incentive based pay system has been at the core of Lincoln’s strategy. The company’s success relied heavily on the culture in which it created. The founder was focused on erasing any heirarchical distinctions and creating an environment that fostered production and innovation through trust, openness and shared control. To gain the employees trust, Lincoln sought to gurantee the workers employment by instituting policy prohibiting lay-offs. They did this by producing invnetory and if demand didn’t pick-up would scale back employee hours. This was not only an efficient model, but reduced overhead costs otherwise endured by competitors. Lincoln was not faced with the costs associated to recruiting and the retraining of its workers. The company fostered creativity with its open-door policy by allowing its experienced production workers to openly share complaints and ideas for improvement with management. An Advisory Board elected employee representatives to share feedback, which was later posted on bulletin boards throughout the facility. Many of the company’s workers are hired straight from high school and trained to perform in many roles. To further gain loyalty from its workforce, many of Lincoln’s executives were employees...
Words: 1028 - Pages: 5
...http://hr.blr.com/whitepapers/Staffing-Training/Leadership/10-Qualities-that-Made-Abraham-Lincoln-a-Great-Lea 10 Qualities that Made Abraham Lincoln a Great Leader By Catherine L. Moreton, J.D. Capacity to Listen to Different Points of View While researching her Pulitzer Prize winning book, Team of Rivals: The Political Genius of Abraham Lincoln, Kearns Goodwin learned that Lincoln had the capacity to listen to different points of view. He created a climate where Cabinet members were free to disagree without fear of retaliation. At the same time, he knew when to stop the discussion and after listening to the various opinions, make a final decision. Ability to Learn on the Job Lincoln was able to acknowledge errors, learn from them, and then move. In this way, he established a culture of learning in his administration, said Kearns Goodwin. Ready Willingness to Share Credit for Success In response to concerns expressed by friends about the actions of some of his Cabinet members, Lincoln stated that the "path to success and ambition is broad enough for two" said Kearns Goodwin. When there was success, Lincoln shared the credit with all of those involved. Ready Willingness to Share Blame for Failure When mistakes were made by members of his Cabinet, Lincoln stood up for them said Kearns Goodwin. When contracts related to the war effort raised serious questions about a member of his administration, Lincoln spoke up and indicated that he and his entire Cabinet...
Words: 4909 - Pages: 20
...Additionally, Davis’s strategy was to gain foreign support in areas they were most weak such as naval power, financial assistance and foreign trade in the hopes that they could offset the Union’s numerical advantages. However, no foreign European nation would recognise the Confederacy unless they could demonstrate an overwhelming military victory, which it could not. Hence, the South was in no state to withstand an extended war, and this significantly influenced the outcome of the conflict. Historian David Potter sees Jefferson Davis’s poor management of the war as the central reason for the South’s defeat. Although, Abraham Lincoln also had his faults, such as some initial hesitation over military issues, his political governance by comparison proved to be more effective in maintaining morale and unity. Lincoln was very gifted politician, who was able to persuade Congress and the public that his policies would bring victory. He was also flexible in his tactics and delegated jobs appropriately. His election victory might have been the spark that ignited the war, but his presidency was also responsible...
Words: 929 - Pages: 4
...were asked by the Chicago Tribune to rate all the Presidents through Jimmy Carter in five categories: leadership qualities, accomplishments/crisis management, political skills, appointments, and character/integrity. At the top of the list stood Abraham Lincoln. He was followed by Franklin Roosevelt, George Washington, Theodore Roosevelt, Thomas Jefferson, Andrew Jackson, Woodrow Wilson, and Harry Truman. None of these other Presidents exceeded Lincoln in any category according to the rate scale. Roosevelt fell into second place because he did not measure up to Lincoln in character. Washington, close behind, ranked third because of his lesser political skills. It is the general opinion of pollsters, moreover, that the average American would probably put Lincoln at the top as well. In other words, the judgment of historians and the public tells us that Abraham Lincoln was the nation's greatest President by every measure applied. Interestingly, had the average Union citizen been asked the same question in the spring of 1863, there can be no doubt but that Lincoln would have fared poorly. Not much more could have been said for him even a year later, when Lincoln thought that he would lose his bid for reelection. It would take Lee's surrender at Appomattox Courthouse and his own death a week later to propel Lincoln into the pantheon of presidential greatness. And Lincoln's canonization began almost immediately. Within days of his death, his life was being compared to Jesus...
Words: 938 - Pages: 4
...scientists were asked by the Chicago Tribune to rate all the Presidents through Jimmy Carter in five categories: leadership qualities, accomplishments/crisis management, political skills, appointments, and character/integrity. At the top of the list stood Abraham Lincoln. He was followed by Franklin Roosevelt, George Washington, Theodore Roosevelt, Thomas Jefferson, Andrew Jackson, Woodrow Wilson, and Harry Truman. None of these other Presidents exceeded Lincoln in any category according to the rate scale. Roosevelt fell into second place because he did not measure up to Lincoln in character. Washington, close behind, ranked third because of his lesser political skills. It is the general opinion of pollsters, moreover, that the average American would probably put Lincoln at the top as well. In other words, the judgment of historians and the public tells us that Abraham Lincoln was the nation's greatest President by every measure applied. Interestingly, had the average Union citizen been asked the same question in the spring of 1863, there can be no doubt but that Lincoln would have fared poorly. Not much more could have been said for him even a year later, when Lincoln thought that he would lose his bid for reelection. It would take Lee's surrender at Appomattox Courthouse and his own death a week later to propel Lincoln into the pantheon of presidential greatness. And Lincoln's canonization began almost immediately. Within days of his death, his life was being compared to Jesus Christ...
Words: 938 - Pages: 4
...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 to customer,employee and stockholders. Not all company like Lincoln Electric Company. So, because of that, we choose Lincoln Electric’s Case. 1.2 Motivation Researcher motivation to conduct research on issues of control systemespecially management...
Words: 4682 - Pages: 19
...Hunter Anderson Dr. Fairhurst Leadership Communication 4008 8 December 2015 Lincoln Essay The year is 1865 and the Civil War death toll has risen just over six-hundred-thousand men. The freedoms sought out by our nation’s founders, now jeopardized by the secession of eleven states from the Union. The fate of The United States of America now laid upon the broad shoulders of our nations sixteenth commander-in-chief, President Abraham Lincoln. In a term marked by the burden of complete social upheaval, Abraham Lincoln was our nation’s foremost leader. The lawyer from Illinois navigated the only internal war in American history by embodying the principals taught by Professor Grint, utilizing a model of distributed leadership to gather the right information and implement change, and then merging these resources with his natural oratory abilities to unite a nation ruptured by domestic indifferences. His commitment to preserving the Union vindicated democracy and initialized the substratum which would be built upon to become the republic we know today. In the modern-day society we inhabit, the development and subsequent implementation of technology in daily activities has allowed our leaders rapid access to consistently accurate data. This ease of access is a luxury I am certain President Lincoln would have utilized, as he was always probing for more information, a trait congruent with the teachings of Keith Grint, Professor of Public Leadership and Management at the Warwick Business...
Words: 1367 - Pages: 6
...The Leadership of Abraham Lincoln Phillip Bullington High Performance Leadership Term Paper 2/12/15 Table of Contents Table of Contents 2 Introduction 3 Leader 4 Power & Influence 4 Ethics & Values 6 Attributes 6 Behavior 8 Followers 9 Motivation 9 Satisfaction & Performance 9 Groups 10 The Rocket Model 10 Situation 11 Situational Levels 11 Emancipation Proclamation 12 Death 13 Conclusion 13 References 14 Introduction Abraham Lincoln was the 16th President of the United States of America. Abraham was born on February 12, 1809 to Thomas Lincoln and Nancy Hanks. He grew up in both Kentucky and Indiana as the son of a farmer who preferred him to work on the farm rather than read books. Lincoln had an intellectual ambition however and was in constant pursuit of knowledge through his readings. Abraham set out for Illinois in 1831 and studied to become a lawyer which he eventually did in 1836 after passing the bar examination. He was then elected to the Illinois State Legislature in 1836, 1838, and 1840. After his retirement from legislature in 1841, Lincoln went on to marry Mary Todd Lincoln in 1842. He then began devoting the majority of his time to law practice until 1847 when he was elected and served in Congress (McPherson, 2000). Lincoln would continue to move in and out of politics for the next 14 years as was continually defeated in bids and elections for office. It wasn’t until 1861, after losing...
Words: 3922 - Pages: 16
...When many Americans think of Abraham Lincoln, they think first of all, as the president who freed the slaves. He is immortalized as the "Great Emancipator," and widely regarded as a champion of black freedom who supported social equality of the races, and who fought the American Civil War (1861-1865) to free the slaves. In actuality, Abraham Lincoln did not fight the Civil War to free the slaves. He fought it to save the Union. He did not agree with slavery and one of the good things that came out of the Union being saved was the abolishment of slavery. (Gienapp, 2002). (Jenness, 2007). Abraham Lincoln was a self made man that rose mythically from humble beginnings to national greatness. He began life as a farm boy. He did not come from a family who believed in education. Despite this, Abraham Lincoln read books and done whatever he could to educate himself. He was a man that believed in honesty and caring for other people. After learning many lessons in life and climbing the ladder of success, his fine qualities landed him as the United States of America’s 16th President. He was successful in doing many great things for people and his community and eventually the United States. (Gienapp, 2002). (Jenness, 2007). He was embarrassed of his family background. He came from a poor family that was farmers. His life as a farm boy was spent doing chores, such as hauling water and chopping wood, and helping in the fields. His mother died when Abraham Lincoln was 9. His...
Words: 2227 - Pages: 9