7/31/2019 Lincoln Electronic Case
2/3
1
TheLincolnElectronicComany|
8/13/2012
Lincolns is a company that has held its standards high for a
long time period. Acompany having a person like John C Lincoln who
has numerous patents (in theindustry) to his credit was sure to
succeed but the factor of younger brother JamesF Lincoln added to
the assurance of success . Lincolns overall strategy is to focuson
continuous cost reductions and cost savings due to the business
mind of JamesF Lincoln and transfer to customers because John
believed that company's strengthwas in manufacturing and Lincoln
could deliver to customers. The compensationsystem has been the
most important factor in Lincolns performance over the last
few years because management believes that through competition
and adequateincentives every person could develop to his or her
fullest potential. Therefore, ithas resulted in high labor
productivity and subsequently relative low productioncost. Besides
the compensation policy, there are other important factors such as
topfield sales force (having the know-how of engineering),
innovative plant and highadministrative productivity. Under the
current compensation system, employeesare handsomely rewarded for
their productivity, high quality, cost reduction ideas,and
individual contributions to the company. In other word, an
employeesearnings and promotion are in direct proportion to his
individual contributiontoward the companys success.
The most critical factor to Lincolns continued success would be
attractiveincentive and compensation to the employees to keep their
employees enjoying thecompetitive and motivated working
environment. Furthermore, companysphilosophy of cost reduction and
high quality at affordable price is a factor thatshould add to the
continued success of the company. The management should
assure that the company keeps up with the technology and have
sufficient profit topay the suppliers of capital. Then management
has to make sure communicationcan be maintained adequately, which
from the current unofficial organization chartdoesnt look suitable.
Company has an innovative plant design and if they couldkeep up
this sort or certain new innovations it will also guarantee their
success.
7/31/2019 Lincoln Electronic Case
3/3
2
TheLincolnElectronicComany|
8/13/2012
Lincoln electric is a diverse company. We cannot predict its
future as a rigid one;the CEO said The real test of Lincoln would
be when the going gets toughhowever Lincoln Electric Inc. said
Friday that Christopher Mapes, its COO (chiefoperating officer),
will become its president and CEO at the end of the year 2012.The
company has done wonderful from last 25 years. Company may go
forexpansion as the CEO also said that population of World is
increasing and thesepeople wont tolerate low standard of living
thus they expect that demands ofconstruction, cars, generators etc.
would increase. Management should go forincreasing research
facilities as in exhibit nine Mr. Richard S Sabo, the manager
ofpublicity of Lincoln Electronic agrees that they lack in research
facility. On thewhole, company is on road to success for the next
25 years as well. I could say thatbecause the latest news that went
through my eyes are of Lincoln shares that rose
78 cents, or 1.8 percent, to $43.68 in morning trading.
