Lincoln's Failed Internationalization The Problem The Causes Rapid international sales growth Acquisitions Management Cultural Barriers Unionized Distant,unengaged parent .European opposed 87:$86m93:$302m Labor-Management relations management .Value vacation poor Inexperienced local management .Low productivity Disastrous international profits 87:$2.8m 93($92m) Balance sheet impact .Stockholders equity 91:$264m93$143m .Debt/Equity ratio Business Environment Legal Barriers 87:0/10093:60/40 Global recession Brazil bonus becomes fixed Overpriced market for companies German laws vs.piecework Little chance to make workforce richLincoln’s Failed Internationalization The Proble m T he Causes Rapid inter natio nal sales growth ’87:$86m ’93:$302m Disastro us internatio nal profits ’87:$2.8m ‘93($92m) Balance s heet i mpact ·Stockholders equity ’91:$264m ‘93$143m ·Debt/Eq uit y ratio ’87:0/100 ’93:60/40 Acq uisitio ns ·Unionized ·Labor-Manage ment relations poor ·Low productivity Manage ment ·Distant, unenga ged parent management ·Inexperienced local management Cultural Barriers ·Europea n opposed ·Value vacation B usiness E nviron ment ·Global recession ·Overpriced market for co mpanies Legal Barriers ·Brazil bonus beco mes fixed ·German laws vs. piecework Little chance to make workforce rich