What was the logic of value creation used

by Ted in Strategy of globalization?

To Reduce dependency on Local Market
U.S recession of 1980s taught a lesson to expand
globally to sustain growth and increase profit
Foreign Incursions in domestic Market
ESAB, a Swiss company, acquired two midsize firms
in U.S
Lincoln couldnt response to the same by domestic
acquisitions due to barrier posed by antitrust laws
Competitive advantage due to technical expertise
Lincoln saw tremendous opportunity in foreign
acquisition owing to Its superior equipment and
manufacturing expertise

Continued
Competitive commodity pricing
Competitive market dynamics prohibited the idea of exporting
goods abroad owing to shipping costs and duties
Inaccurate assumption of Incentive system
Ted assumed that incentive system would work well in
European market in the same spirit as it worked in U.S market
Incomplete picture of market dynamics in European market
Lincolns distributors and managers told the company that
Europeans have a bias for their own goods especially Germany
In order to establish its presence in Europe Acquisition is
required

Abstract from the case, the challenges of

'Change Management' in any organization?
Lack of Expertise
Lincoln faced trouble while expanding globally as its corporate
management sufficient expertise and had little experience
running a complex organization.
Cultural Difference
Work culture differs from country to country and hence demands
change in company policy
The incentive program that worked well in U.S didnt worked in
Europe as European culture of labor was hostile to bonus system
Improper alignment between Goal and Planning
Lincoln didnt planned well in advance i.e the required structural
changes such as hiring people in senior management with
expertise in International Operations that resulted in mayhem at
later stage