CASE 2 Lincoln Electric;Venturing Abroad FAN Libo
CASE 2 Lincoln Electric; Venturing Abroad FAN Libo
Case structure The case begun with a brief introduction of the trigger issue,which questions whether Mike Gillespie, president of Lincoln Electric's Asia region,should invest in a new factory in Indonesia.More specifically, it questions whether should consider transferring Lincoln's unique incentive system of management to such an operation. The case then presents a broad overview of Lincoln Electric company,its historic development,and its outstanding long-term performance.In particular,it focuses on the unique management philosophy that has been built around the incentive system of piecework, bonuses,and quranteed employment
Case structure The case begun w ith a brief introduction of the trigger issue, which questions whether Mike Gillespie, president of Lincoln Electric’s Asia region, should invest in a ne w factory in Indonesia. More specifically, it questions whether should consider transferring Lincoln’s unique incentive system of management to such an ope ration. The case then presents a broad overview of Lincoln Electric company, its historic development, and its outstanding long-term performance. In particular, it focuses on the unique management philosophy that has been built around the incentive system of piecework, bonuses, a nd quranteed employment
The next section of the case documents the company's experience in overseas expansion,describing how long- established operations in Canada,Australia,and France have successfully adopted the Lincoln's incentive-based management model. However,the new wave of international expansion in the late 1980s and early 1990s,has wun into major difficulties.For the first time in its history,Lincoln has begun losing money,and the board saw the need to replace the CEO and bring in new management under the leadership of Tony Massro,Lincoln's first out side CEO
The next section of the case documents the company’s experience in overseas expansion, describing ho w longestablished operations in Canada, Australia, and France have successfu lly adopted the Lincoln’s incentive-based management mod el. How ever, the new wave of international expansion in the late 1980s and early 1990s, has wun into major difficu lties. For the first time in its history, Lin coln has begun losing money, and the board sa w the need to replace the CEO and bring in ne w management under the leadership of Tony Massro, Lincoln’s first out side CEO
Finally,Massaro and his team decide it is time to renew overseas expansion based on having learned from Linclon's previous failure abroad. In particular,the case focuses on the activities in Asia and concentrates on the entry decision into Indonesia
Finally, Massaro and his team decide it is time to renew overseas expansion based on having learned from Linclon’s previous failure abroad. In particular, the case focuses on the activities in Asia and concentrates on the entry decision into Indonesia
Learning purpose This case can be used to develop a number of central learning purposes including the following: To demonstrate the development of strategic advantages through building of organizational capability. To illustrate the power of strategy-structure fit by providing an excellent illustration of how the tight alignment of Lincoln's strategy,organization,system,processes,and culture create an international capability that has provided it with a sustainable source of competitive advantage. To illustrate the motivations,mentalities,and means of internationalization
Learning purpose This case can be used to develop a number of central learning purposes including the following: To demonstrate the development of strategic advantages through building of organiz ational capability. To illustrate the pow er of strategy-structure fit by providing an excellent illustration of how the tight a lignment of Lincoln’s strategy, organiz ation, s ystem, processes, and culture create an international capability that has provided it w ith a sustainable source of competitive advantage. To illustrate the motiv ations, men talities, and means of internation aliz ation