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Table of Contents

INTRODUCTION ............................................................................................................................................. 2
Definition of Strategy .................................................................................................................................... 3
Lincoln Electric Company Strategy................................................................................................................ 4
Physical ......................................................................................................................................................... 5
Communication ............................................................................................................................................. 5
Analysis ......................................................................................................................................................... 6
Leadership ..................................................................................................................................................... 7
Compensation ............................................................................................................................................... 8
Challenges in India ........................................................................................................................................ 8
Human resource............................................................................................................................................ 8
Advantages of recruiting PCNs & HCNs ........................................................................................................ 9
Disadvantages of recruiting PCNs & HCNs .................................................................................................... 9
Is it possible to use the same strategies in another industry? ................................................................... 10
Summary of Lincoln electric strategy in India ............................................................................................. 10
References ......................................................................................................................................................

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INTRODUCTION
Lincoln electric is the biggest maker of welding supplies on the planet. The organization has
been in presence in excess of 100 years, priding itself on delivering items and answers for its
clients far and wide. Headquartered in Cleveland, with a Toronto office in Canada, Lincoln
Electric was established by John C. Lincoln in 1895 with just $200 capital venture. He delivered
electric engines as his first items, which he planned himself. The Canadian subsidiary was made
in 1916 to convey American-made items. The accompanying year the Lincoln Electric Welding
School opened its entryways, and from that point forward has prepared in excess of 100,000
understudies.
The organization remains non-unionized, yet it was one of the first in America to offer its
laborers paid travels in 1923. After two years it presented a worker stock possession plan, and in
1929 a representative recommendation program. Motivation rewards followed in 1934, and amid
the Great Depression the wages of workers really multiplied.
Lincoln developed quickly amid the 1940s and 50s, opening an office close Paris in 1953. The
organization kept on innovating, staying valid to its center business. Amid intense monetary
times, representatives have ventures up to the plate to work with administration to discover
answers for issues. In the previous decade, Lincoln has opened plants in such nations as China,
Germany, South Africa and Turkey, gaining practical experience in particular regions. Yet
Cleveland is the base camp and keeps up a tremendous plant.
Lincoln Electric has 40 manufacturing locations, including operations and joint wanders in 19
nations and a worldwide network of merchants and deals business locales covering more than
160 nations.

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Definition of Strategy
Strategic management is the continuous planning, monitoring, analysis and assessment of all that
is necessary for an organization to meet its goals and objectives. The strategic management
process involves analysing cross-functional business decisions prior to implementing them.
Strategic management typically involves:

Analyzing internal and external strengths and weaknesses.

Formulating action plans.

Executing action plans.

Evaluating to what degree action plans have been successful and making changes when
desired results are not being produced.

Strategic management necessitates a commitment to strategic planning, which represents an


organization's ability to set goals to determine the decisions and actions that need to be taken to
produce those results.

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Lincoln Electric Company Strategy


For two decades the Lincoln Electric Company, the country's biggest producer of circular
segment welders and welding supplies, has been examined by Harvard Business School
understudies as a model of how to persuade laborers.
Lincoln offers few of the incidental advantages that numerous laborers underestimate: no pay for
wiped out days or occasions, for instance. Also directors work without perquisites like saved
stopping or club participations. An Overseas Mess
Lincoln accepted business was about serving clients by making the most astounding quality item
at the least cost and the intends to that end was captivating all workers in the assignment. To
make that engagement a reality, Lincoln made a hierarchical framework with four key
components:

Correspondence and investment

Piece work

Legitimacy based reward

Ensured work

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Physical
Lincoln doesn't have an extravagant administration logic or collaboration blurbs enhancing the
plant's dividers. It has clear execution gauges and a three-trial period. Then again, by conferring
and performing for the organization Lincoln responds by focusing on its representatives.
At the heart of this is authority: how it is honed every day. The outcome of Lincoln Electric's
concentrate on quality, development and customized answers for its overall clients is an
organization that has entered its third century. It has been around quite a while, amid which whiz
kid cutting edge firms have gone back and forth; and Lincoln will probably associate with
significantly more.
What Lincoln Electric has finished is not rocket science. Its senior pioneers, be that as it may,
saw long back that it is individuals who are the characterizing key normal for whether an
organization succeeds over the long haul. It's grievous that other North American organizations
have yet to evaluate this.

Communication
Correspondence and interest. Lincoln accepted individuals were inspired by being regarded and
given an opportunity to create and utilize their abilities at work. He gave laborers access to
managerial information and urged them to discover approaches to enhance profit and
proficiency. A chose worker warning board has met with Lincoln's top administration at regular
intervals for a century and, all in all, administration and specialists have settled on every
significant choice about the organization's heading including the extension of assembling
operations abroad. Administration has held the right to veto any choices made by the board, yet
that is a force it has never required to work out, on the grounds that administration and laborers
have the same diversions.

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Analysis

Center abilities, Lincoln Electric's center competencies incorporate authority, gifted workers
quality execution, keeping representatives persuaded, advancement through research and
improvement, and work situations in which workers oversaw themselves. An alternate center
fitness that ties into the aggressiveness of its exploration and development project
arrangements Lincoln's capacity to get access to inventive technological items.

Unique capabilities Lincoln Electric separate itself from its rivals for the most part through
its human asset and motivation framework. By executing a piecework sort pay, workers were
paid based upon their creation. Likewise, workers depended on yearly rewards that were
resolved on a legitimacy rating that included components, for example, quality, flexibility
profit steadfastness, collaboration and safeness.

Financially, Lincoln Electric had incomes of $1.6 billion in 2005 and gains a value premium
for its items on account of its notoriety for being the world's biggest planner and producer of
welding items and other welding and cutting items. A large portion of the organization's 2005
deals infer from North American deals (1007.5 million), and also European deals (426.3
million). Then again. With potential development rate in Asia, future deals rates in nations,
for example, China and India may surpass past deals in different nations

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Leadership
The effective management of occupational safety and health is a key driver of the continued
success of businesses. It is important that senior managers seek to demonstrate effective safety
and health leadership alongside and integrated with their other responsibilities and duties.
Effective management is about securing the health, safety and welfare of all staff by reducing
risk, and ensuring protection from harm or illness arising out of work activities. Moreover,
Lincoln company use two of leadership management rules :

Combine Work Goals with Employee Goals.

Understand What Motivates Each Employee.

As a company policy and rules Lincoln managers and headquarters use to motivate the
employees by making sure them work goals align with their work goals. This requires strategic
planning and communication because they must let them employees know exactly what they
expect from them. If they do not have standards and goals to meet Lincoln will feel frustrated by
their lack of efficiency and they will feel frustrated by their failed efforts to please the company.
Managers must understand exactly what motivates each employee in their company. Some are
motivated by money and benefits; some are motivated by praise; and others are motivated by
work-life balance. As a manager, you must assess each employee's work responsibilities and
underlying motivations. An employee analysis requires you to meet with each employee
individually to discuss their work-related desires. Most employees appreciate a manager's sincere
interest in their lives.

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Compensation
The trick for employers is to figure out how to inspire employee motivation at work. To create a
work environment in which an employee is motivated about work, involves both intrinsically
satisfying and extrinsically encouraging factors. To motivate employee Lincoln Use rewards as
motivators divides employee motivation into two categories: intrinsic and extrinsic motivation.
Intrinsic rewards are internal, psychological rewards such as a sense of accomplishment or doing
something because it makes one feel good. Rewards that other people give to you such as a
money, compliments, bonuses.

Challenges in India
The key issue is not whether to enter the Indian market, but instead how to do it. Because of the
inability in this specific business, Lincoln Electric must consider all choices before entering.
Using related knowledge in Japan, South Korea, and China are key components for changing in
accordance with Indian market. Competition now is high in Indian market. Before entering,
Lincoln should create system that would help the employees and addition more learning of
Indian social qualities. Government restriction should not be an element as they are adaptable
with the work practices of new market participants. The mentioned competitors can be
defenseless in zones, for example, client administration relations, higher work power, and
Lincoln can likewise present more up to date imaginative innovation.

Human resource
In each country there is a different especially when a big company Lincoln electric they will take
some of workers who have experience in the business and moved them to India so in this case
there is advantages and disadvantages for that

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Advantages of recruiting PCNs & HCNs

The parent company will have both control and proper supervision over the company.

The employees will be more dedicated can run the company successfully.

The PCNs and HCNs can help, work with and assist each other to solve the both local
and international problems

The employees can deal with both foreign and local very comfortably.

Disadvantages of recruiting PCNs & HCNs

Cultural differences may occur among employees

Language barrier may cause confusion

Liking and disliking of the same group may cause problem.

Places and salary

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Is it possible to use the same strategies in another industry?


Every company has different strategies; also we cant use the same strategies for Lincoln electric
in another industry for example hotel. We cant use the same strategies because if we will apply
the same strategies for the hotel it will be different. In Lincoln electric the challenges of the work
is more harder and more dangerous.in Lincoln electric the industry segments such as heavy
equipment, metal buildings, pipeline and pipe mills, and power generation, which includes the
fabrication of wind towers. In hotel we dont need to use all this. In Lincoln electric the risk of
staff in the manufacture of some machines and how to use it, in hotel it will be more easy to
handle the job. Also we need different employees with different experience of work.

Lincoln electric strategy in India


The case portrays Lincoln Electric's business methodology and motivating force company, and it
examines the worldwide method decisions that the organization confronts going ahead. Lincoln
Electric is choosing whether a solid push into India ought to be the following venture in the
organization's globalization. The organization has appreciated expanding accomplishment in
China as an issue of its forceful extension through both a joint wander and set of lion's share
claimed plants. The organization is choosing how it could apply the lessons of the Chinese
experience, and also the lessons of its experience crosswise over Asia, Europe, and Latin
America, to India. Above all else, ought to Lincoln Electric claim an assembling operation in
India? On the off chance that yes, Lincoln Electric could enter the India showcase by
procurement, by joint wander, or by building another plant all alone. On the off chance that the
organizations were to enter by procurement, it was misty what kind of valuation to apply to any
of the Indian occupant organizations. In the event that the organization were to enter by joint
wander

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Summary of Lincoln electric


Lincoln doesn't have an unrestrained organization rationale or cooperation blurbs upgrading the plant's
dividers. It has clear execution gages and a three-trial period
Focus capacities, Lincoln Electric's inside abilities join power, skilled laborers quality execution
Novel abilities Lincoln Electric separate itself from its opponents generally through its human resource
and inspiration system
Fiscally, Lincoln Electric had earnings of $1.6 billion in 2005 and increases a quality premium for its
things because of its reputation for being the world's greatest organizer and maker of welding things
and other welding and cutting things
Besides, Lincoln organization utilize two of administration tenets :
1.combine Work Goals with Employee Goals.
2.understand What Motivates Each Employee.
As an issue arrangement and tenets Lincoln directors and home office utilization to inspire the workers
by verifying them work objectives adjust to their work objectives
To rouse representative Lincoln Use remunerates as sparks partitions worker inspiration into two
classes: characteristic and extraneous inspiration. Characteristic prizes are inner, mental compensates,
for example, a feeling of achievement or doing something in light of the fact that it makes one feel
great. Remunerates that other individuals provide for you, for example, a cash, compliments, rewards.
The key issue is not whether to enter the Indian market, yet rather how to do it. On account of the
powerlessness in this particular business, Lincoln Electric must consider all decisions before entering.
Utilizing related information as a part of Japan, South Korea, and China are key parts for changing as per
Indian market.
Each organization has distinctive techniques; likewise we can't utilize the same systems for Lincoln
electric in an alternate industry for instance lodging

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References
lincolnelectric wikispaces. 2010. BA4196-LincolnElectric. [ONLINE] Available at: http://ba4196lincolnelectric.wikispaces.com/Pest+Analysis. [Accessed 19 November 14].
Roy L. Morrow. 2012. Lincoln Electric Announces Year-End Leadership Transition. [ONLINE]
Available at: http://newsroom.lincolnelectric.com/News+Releases/lincoln-electric-2013-leadershiptransition.htm. [Accessed 19 November 14].
prnewswire. 2014. Lincoln Electric Announces Senior Executive Management Promotions. [ONLINE]
Available at: http://www.prnewswire.com/news-releases/lincoln-electric-announces-senior-executivemanagement-promotions-62161997.html. [Accessed 19 November 14].
James OToole. 2013. The Enduring Management Wisdom of Lincoln. [ONLINE] Available at:
http://www.strategy-business.com/blog/The-Enduring-Management-Wisdom-of-Lincoln?gko=547c9.
[Accessed 19 November 14].

The New York Times. 1994. Rethinking a Model Incentive Plan. [ONLINE] Available at:
http://www.nytimes.com/1994/09/05/business/rethinking-a-model-incentiveplan.html?src=pm&pagewanted=2. [Accessed 19 November 14].
Wallace , Wallace J, 2009. MANAGEMENT SCIENCE. 1st ed. Harvard Business School, Harvard
University, Boston, Massachusetts 02163: 2009.

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http://www.people.hbs.edu/jsiegel/siegellarson_managementscience_2009.pdf. [Accessed 19 November


14].
changingwinds wordpress. 2010. How Mutual Commitment Leads to Excellence: The Lincoln Electric
Story. [ONLINE] Available at: http://changingwinds.wordpress.com/2010/04/19/how-mutualcommitment-leads-to-excellence-the-lincoln-electric-story/. [Accessed 19 November 14].

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