Lincoln Electric Case Study Answers

Summary of a case study about Lincoln Electric Company

HISTORICAL SKETCH The opening of the case study, begins with historical background of the company, which itself is an impressive story. It is referring to the major elements involved in a business culture which are the sings of existence of a culture, also explaining about the process of how the culture was created. The story of James Lincoln itself is inspiring for stakeholders at different levels. This could be a great source of motivation specially for those whom are thinking of being part of the company in future which helps maintaining the culture by providing attraction and to some extend attrition of the employees. By reading between the lines, we can find the founder’s value

One could draw the big picture by knowing how each department are interconnected, despite Lincoln’s belief that organization structure is not necessary aiming tt provide more flexibility in decision making,planing and strategy level. At the end of the day this doesn’t say there is no system but it may not follows the common sense in similar industries.

HOW ARE CULTURES MAINTAINED AT LINCOLN? Lincoln Electric shares is one of the most valuable of its kind in contrast with their competitors in the market . In January 1980, the price of restricted stock committed by Lincoln to employees was $117 a share. By July 16, 1980,only six month later, the stated value at which Lincoln will repurchase the stock if tendered, was $132. A check with the New York office of Merrill, Lynch, Pierce, Fenner and Smith on July 16, 1980 revealed a bid price on Lincoln stock of $219 a share, with none being offered for sale.Everyone with basic knowledge of finance could tell this is a company with strong backbone,great deal of innovative ideas that can generate a dividend of nearly 25% per share, whilst shareholders are not even considering selling them at nearly twice as much of its appraisal