Subject category:
Human Resource Management / Organisational Behaviour
Published by:
International Institute for Management Development (IMD)
Version: 27.12.2002
Abstract
This is the first of a two-case series (IMD-4-0229 and IMD-4-0230). From the mid-1980s, Oticon A/S, a Danish manufacturer of high-quality hearing aids, begins to experience significant losses and falls from its number one market position to third position. A newly named Chief Executive Officer, Lars Kolind, initiates a significant cost reduction and product line rationalisation programme, which leads to a dramatic turnaround restoring the company once again to profitability. Lars Kolind, however, does not think that these changes have led to sustainable competitive advantage, and he further introduces a vision for Oticon A/S headquarters that would entail a fundamental restructuring and transformation of the organisation. Management and employees revolt, and refuse a planned move of headquarters. Should Lars Kolind proceed with the proposed change, or has this recent turnaround been sufficient to restore radical Opticon to its number one position?
Teaching and learning
This item is suitable for executive education courses.Time period
The events covered by this case took place in 1985-1994.Geographical setting
Region:
Europe
Country:
Denmark
Featured company
Oticon A/S
Turnover:
USD 100 million
Industry:
Audiology
Featured protagonist
- Lars Kolind (male), CEO
About
Abstract
This is the first of a two-case series (IMD-4-0229 and IMD-4-0230). From the mid-1980s, Oticon A/S, a Danish manufacturer of high-quality hearing aids, begins to experience significant losses and falls from its number one market position to third position. A newly named Chief Executive Officer, Lars Kolind, initiates a significant cost reduction and product line rationalisation programme, which leads to a dramatic turnaround restoring the company once again to profitability. Lars Kolind, however, does not think that these changes have led to sustainable competitive advantage, and he further introduces a vision for Oticon A/S headquarters that would entail a fundamental restructuring and transformation of the organisation. Management and employees revolt, and refuse a planned move of headquarters. Should Lars Kolind proceed with the proposed change, or has this recent turnaround been sufficient to restore radical Opticon to its number one position?
Teaching and learning
This item is suitable for executive education courses.Settings
Time period
The events covered by this case took place in 1985-1994.Geographical setting
Region:
Europe
Country:
Denmark
Featured company
Oticon A/S
Turnover:
USD 100 million
Industry:
Audiology
Featured protagonist
- Lars Kolind (male), CEO