Questions and Answers to Lincoln Electric case study by Harvard Business School.

854 Words Jul 30th, 2003 3 Pages
What features of LECO account for its long-term success in the US? There are several factors that have contributed to the long-term success of Lincoln Electric in the US. Most notably, the productivity of the labor force and the efficiency of operations have generated a competitive advantage over the market. Existing and potential competitors are not able to produce at the same low costs and subsequently are not able to offer competitive prices to the market, thus increasing LECO 's market share. The high levels of productivity common to LECO employees can be attributed to motivation and job satisfaction:

*Guaranteed employment: no lay offs since 1948, instead LECO rotates through co. (skill variety).

*Equity: employees earn comparable,
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As a result, there were low levels of supervision and evaluation of international managers. Essentially, LECO parachuted into unfamiliar markets, ignored almost all of the relevant cultural issues, severely mistimed the acquisitions market, and then, due to an unprepared organizational structure - isolated the operations from the rest of the firm.

What should

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