Lincoln Electric: Venturing Abroad
1. How was Lincoln able to grow and prosper for so long in such a difficult commodity industry that forced out other giants such as General Electric, Westinghouse, and BOC? What is the source of Lincoln’s outstanding and enduring success?
2. Given this outstanding success, why did the internationalization thrust of the late 1980s and early 1990s fail?
3. What is your evaluation of the company’s internationalization strategy under Tony Massaro’s leadership? Is it likely to be more successful that the previous offshore initiatives? If so, why?
4. Should Lincoln go ahead with its investment in Indonesia? If so, what should be its entry strategy with respect to partnerships? Which compensation option would you recommend to Mike Gillespie as he considers the advisability of implementing the company’s incentive management system?