Explain the success of LincoIn Electrics in the US Which pro

Explain the success of LincoIn Electrics in the US Which problems did LincoIn face when tried to operate in Germany, Mexico and China? How did LincoIn solve the problems in each country? Would the LincoIn employee incentive system work in your workplace? Why?

Solution

Lincoln electric has maintained a strong reputation and it has been profitable form 1930s. No worker was removed during 1948 for any reasons that are economic and it only focused on providing continuous employment policy.

Trust is the important element that sets it apart. It makes use of production and management concepts which were usually common during the 1920s. For example they practiced the piece work system and promised them the compensation too.

The incentive system is a perfect combination of bonus with piece work. This helps to pay every factory worker on the production of number of units by him. The system allows for bonuses and a fair incentive system.

It rushed to global ie in the Chinese, Germany and Mexican markets without studying it properly.

It noticed in China that the people tend to prefer foreign firms less. There is importance given to the Chinese companies as compared to foreign firms and it tends to make people negative about the whole idea from the beginning.

It had issues to compete with the domestic competitors and there were antitrust laws in Mexico. Even in Germany it was already established with the strong ESAB market and the competition to battle them out was strong.