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This is the second of a two-case series (IMD-4-0229 and IMD-4-0230). In 1990, Lars Kolind decides to abandon his plan to move Oticon A/S headquarters, but insists on the pursuit of his vision for what he now calls the ''spaghetti'' organisation - so named because of its relative lack of structure. Shortly after implementation the company suffers further financial losses. A new managing director, brought in by Lars Kolind, begins to address the financial dynamics of Oticon A/S. Within six months profitability is restored, and by 1993 the company enjoys its greatest profit since its founding in 1904. Has Lars Kolind achieved the competitive advantage he sought with this new organisation? Can the spectacular financial success be attributed to the ''spaghetti'' organisation? How can the new organisation be sustained in the years to come? **EFMD European Case Writing Competition Overall Winner 1994**