Hi there
- This is a preview of the essay.
To view the full text you must login!
Operating since 1895, Lincoln Electric Company started as an electric motors and generators manufacturer that evolved into a producer of arc-welding equipment, holding 90% of the world market in self-shielded cored-wire electrodes. It was incorporated in 1906 and opened its plant and headquarters in Cleveland. Lincoln started expanding globally through acquisition from mid-1980, and by 1993, Lincoln was operating 22 manufacturing plants in fifteen nations. The company's sales revenue increased from $450 million in 1987 to $853 million in 1992, and employment rose from about 2,400 employees in 1985 to 6,300 in 1992 (Chilton, 1993). In 1994, Lincoln Electric closed the Venezuelan, Brazilian, Japanese and German facilities due to continuous losses and scaled down its operations in the UK, Spain, France, Norway and the Netherlands. Before the acquisition, the company had no debt and a cash reserve of over $70 million. By 1992, the company's debt was $250 million, making up 63% of its capital structure (Hastings, 1999). In 1993, the company recorded pre-tax restructuring charges of $70 million (Chilton, 1994).
Lincoln's foundation is comprised of a flat hierarchy, a company-wide year-end bonus plan, a guaranteed employment plan, and open communication policies. Team spirit and trust between employees and management has proven valuable for the company especially during difficult economic times...