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Lincoln Electrics

- VENTURING ABROAD -

SYNDICATE 3 / 45 A
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BACKGROUND
Founded by John C. Lincoln in 1895 in Cleveland, Ohio to manufacture electric motors and generators. In 1911 introduced its first machine for arc welding and became the world leader in sales of welding equipment and supplies. The CEO of Lincoln Electric: 1. John C. Lincoln (Founding Father) 2. James F. Lincoln (Wrote and implemented incentive system) 3. William Irrgang (No international ventures) 4. George Willis (Expanding Lincoln throughout the world) 5. Donald Hasting (Recovering the nightmare years) 6. Tony Massaro (Expanding Lincoln with a new approach)

Lincolns philosophy
Unbounded faith in the individual and a belief in the equality of management and workers

Based on this philosophy, Lincoln formed the incentive system and a unique management style and culture.

HR Practices
- Performance management Rank and file twice during the year on four types of performance -Pay structure, incentive and benefit piecework annual bonus guaranted employment limited benefits - Labor and employee relation No hierarchical distinctions Open communications (open door policy)

International Expansion
Begining in 1986, Lincoln agresively expand the business globally through acquisitions. Problem that arise in Lincolns International Expansion (the Crisis years): Lincoln got a financial trouble especially in Europe. The Lincoln management lacked sufficient international expertise and had little experience running a complex, dispersed organization.

Different country culture, economic system, law and political issues

International Expansion
How the Lincoln solve the problem on crisis years : Lincoln make all employee more total in their commitment to their company using the all-out communication effort Hiring executives (senior executives Lincoln) with international experience from outside company Restructuring international operations to achieve profitability

International Expansion
After the crisis years:

Following the restructuring, the overseas subsidiaries rebounded. The new CEO create a new structure for the companys international operations and Lincoln create manufacturing capacity in their regions and developed plans for new factories

Critical Issue

Expanding Lincoln through out asia (Indonesia) by managing human culture and implementing Lincoln management system

Recommendation
Fitting the management system with Indonesian culture, Law, political issues and economic system.
- Using more traditional

compensation system

-Partnering with SSHJ would be the most efective choice

THANK YOU