Lincoln Electric Case
The Lincoln Electric Case
International Strategic Management
By: Group 4A
Introduction
John C. Lincoln founded the Lincoln Electric Company in the year 1895. The first products that the company produced and sold were electric motors that he had designed himself. A Few years later, in 1907 his brother James, a recently graduate from the Ohio State University, joined as a senior manager; He was also the one who would introduce different and very innovative human resource policies over the next few decades. These policies included things like employee stock ownership, the creation of an Employee advisory board, as well as piecework pay. Most of these ideas were later adapted as standard US wide practices.
The Welding business, which not really was one of the main focuses of the Lincoln Electric Company, became the main source of income by 1922. Welding which a special technique of -under heat - bringing together different sources of metals. It is used for basically most of the industrial areas, from pipeline manufacturing to petrochemical complexes.
From 1986 onwards, the company pursued a course of extensive internationally expansion. This was started already way earlier in 1933 first, with the establishment of the Lincoln Electric Company in Australia and in 1953 with its expansion to France. However, from the mid 1980s onwards, Lincoln Electric expanded its manufacturing operations into 16 countries.
This expansion peaked in 1995, when the company reached the $1 billion in sales the first time. It was also the year Lincoln began to trade its shares on the American stock market the NASDAQ. By 2005 it became the worlds leading manufacturer in the welding industry. Nowadays, (Dec.31 2010) Lincoln Electric has net sales of $ 2,070 million.
Why go abroad?
As the Lincoln Electric Company’s idea and concept proved to be successful in the US from the 1930s onwards, it also operated outside of the country. Due to its success in its home
International Strategic Management
By: Group 4A
Introduction
John C. Lincoln founded the Lincoln Electric Company in the year 1895. The first products that the company produced and sold were electric motors that he had designed himself. A Few years later, in 1907 his brother James, a recently graduate from the Ohio State University, joined as a senior manager; He was also the one who would introduce different and very innovative human resource policies over the next few decades. These policies included things like employee stock ownership, the creation of an Employee advisory board, as well as piecework pay. Most of these ideas were later adapted as standard US wide practices.
The Welding business, which not really was one of the main focuses of the Lincoln Electric Company, became the main source of income by 1922. Welding which a special technique of -under heat - bringing together different sources of metals. It is used for basically most of the industrial areas, from pipeline manufacturing to petrochemical complexes.
From 1986 onwards, the company pursued a course of extensive internationally expansion. This was started already way earlier in 1933 first, with the establishment of the Lincoln Electric Company in Australia and in 1953 with its expansion to France. However, from the mid 1980s onwards, Lincoln Electric expanded its manufacturing operations into 16 countries.
This expansion peaked in 1995, when the company reached the $1 billion in sales the first time. It was also the year Lincoln began to trade its shares on the American stock market the NASDAQ. By 2005 it became the worlds leading manufacturer in the welding industry. Nowadays, (Dec.31 2010) Lincoln Electric has net sales of $ 2,070 million.
Why go abroad?
As the Lincoln Electric Company’s idea and concept proved to be successful in the US from the 1930s onwards, it also operated outside of the country. Due to its success in its home