HW5 - University of Illinois at Urbana-Champaign Professor...

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University of Illinois at Urbana-Champaign Professor Ron Laschever, ECON 440, Spring 2010 1 Problem set #5- Lincoln Electric (HBS 376-028) Some Suggested Answers and comments (as discussed in class, there are additional possibilities) 1) One could claim Lincoln Electric has been very successful. a. Give two pieces of supporting evidence to this claim. [10 pts.] i. Consistent and impressive growth for several decades ii. Market leader (as measured in market share) b. Give three reasons they have been so successful. [10 pts.] i. Constant innovation, product improvement, and cost reduction ii. High quality product iii. Better Sales and Distribution than competitors But, one could go a level deeper and examine what has lead to the above reasons: i. “Aggressive” pay scheme which provides strong incentives to produce and innovate ii. Attractive personnel policies such as promotion within and guaranteed employment iii. A strong culture (trust, fairness, the “Lincoln Electric family”, etc.) iv.
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This note was uploaded on 10/24/2010 for the course ECON 440 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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HW5 - University of Illinois at Urbana-Champaign Professor...

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