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Dominikus Stefano Nadika

YEU 49
Summary of Lincoln Electric !enturin" #$road
Michael Gillespie, The Lincoln Electric Companys new president for the Asia Region,
was encouraged to deelop plans to open welding consuma!les factories in seeral Asian
countries" !y the new CE#, Anthony Massaro, and Gillespie had specifically turned his attention
to plans for $ndonesia% &e wor'ed with Gillespie to prepare for the (eptem!er )**+ meeting
with Massaro and the presidents of the other worldwide regions% &e analy,ed Lincolns current
capa!ilities and its past e-periences and prepared a transformatie plan !ased on !usiness
concept innoation, documented !y this report, with a three pronged approach for the Asia
Region% The first prong would !e to e-ecute Massaros strategy, to grow reenue in the less.
deeloped countries, !y !uilding a factory in $ndonesia in a /oint enture with ((01 as a pilot
step, to !e followed !y further e-pansion to other (outh East Asian countries and to China% The
second prong would !e to !uild on Lincolns strengths as an organi,ation, including its technical
innoatieness and incentie system and its people, to prepare Lincoln for the e-pansion effort
ahead% The third prong would !e to e-tend Lincolns competencies to the leel of a liing system
that learns, from the Asia Region e-pansion e-perience and from all aspects of its future
e-istence, how to grow sustaina!ly%
The potential !enefits for manufacturing in $ndonesia were reenue growth, reduced
logistics costs, and improed access for e-panding into other parts of the Asia mar'et% The
mar'et was growing at * 2 )34 per year and when com!ined with the e-pected mar'et share
gains against competitors the Asia Region should !e a!le to meet or e-ceed reenue growth
e-pectations% 5y manufacturing in $ndonesia, the logistics costs for Lincolns 674 mar'et share
of automatic consuma!les would !e reduced and could increase mar'et share for automatic
e8uipment and consuma!les% 5y choosing ((01 as a /oint enture partner, Lincoln would !e
cultiating a alua!le long.term strategic partner that would proide more than strong financial
support for factory !uilding and to help coer initial operating costs% As a partner, with a share of
the profits, ((01 could only hae more incentie to increase sales of Lincolns products through
its e-isting operations in 9ietnam, 5urma, and China, and to e-pand Lincolns mar'et share in
those countries and to enter mar'ets in other countries%
As for organi,ational deelopment innoations, 1ames Lincoln continued to innoate
throughout his tenure and introduced employee stoc' ownership plan, paid acation, open
door", and guaranteed employment% 0oweer, organi,ational deelopment innoations had
apparently ceased upon 1ames Lincolns death% Adaptie approaches had !een ta'en on a
locali,ed and minor scale% $n the meantime, the industrial society was !eing replaced !y the post.
industrial society and Lincoln would need to reiew organi,ational deelopmental needs and
ad/ust, enhance, or replace its arious policies% (pecifically, Lincoln would need to create
incenties for sharing !est practices and to encourage team colla!oration% And, emphasis would
need to shift from training manual wor' to educating 'nowledge wor'%
:inally, Lincoln would need to integrate technical and organi,ational deelopment
innoations and create synergies for the glo!ali,ed operation of its intended e-pansion into the
fie world regions% Manufacturing, sourcing, distri!ution, and other operational functions should
!e iewed from a holistic perspectie to create internal sourcing and distri!ution networ's
!etween regions, countries, and localities% A glo!al enterprise resource planning system would !e
needed to coordinate logistics%