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Case Solution for Lego Group: An Outsourcing Journey

Complete Case details are given below :

Case Name : Lego Group: An Outsourcing Journey

Authors : Marcus Moller Larsen, Torben Pedersen, Dmitrij Slepniov

Source : Ivey Publishing

Case ID : 910M94

Discipline : General Management

Case Length : 16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

The last years’ rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world – the LEGO Group – the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in its roughly 70 years of existence, the management had, among many initiatives, decided to offshore and outsource a major chunk of its production to Flextronics. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production besides closing down major parts of the production in high cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. This decision eventually proved itself to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. This sudden change in its sourcing strategy posed LEGO management with a number of caveats. Despite the bright forecasts, the collaboration did not fulfill the initial expectations, and the company needed to understand why this had happened. Secondly, what could LEGO management have done differently?

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Case Solution for Carlsberg in Emerging Markets

Complete Case details are given below :

Case Name : Carlsberg in Emerging Markets

Authors : Michael W. Hansen, Torben Pedersen, Marcus Moller Larsen

Source : Ivey Publishing

Case ID : W11045

Discipline : General Management

Case Length : 12 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

Risking becoming the target of a hostile takeover or alternatively, being cornered as a small regional player in the global beer industry, the Danish brewery Carlsberg decided in the early 2000s to expand into the rapidly growing emerging market to pursue new arenas of growth. By 2008, this strategy had paid off, and Carlsberg was positioned amongst the five largest breweries in the world. In the Russian market – one of the fastest growing markets in the world – Carlsberg had become the market leader. In China – the world’s largest beer market in terms of size and population – the company had achieved a 55 per cent market share in Western China, and operated 20 brewery plants with approximately 5,000 employees. The ambitious acquisition strategy applied in emerging markets had become essential to Carlsberg’s business in relation to future growth and profit. Accordingly, the case focuses on Carlsberg’s entry into China, which started as a commercial failure in the eastern part of the country, but subsequently developed successfully in the west.

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Case Solution for From In-house to Joint R&D: The Way forward for Nokia Denmark

Complete Case details are given below :

Case Name : From In-house to Joint R&D: The Way forward for Nokia Denmark

Authors : Torben Pedersen, Marcus Moller Larsen

Source : Ivey Publishing

Case ID : W11594

Discipline : General Management

Case Length : 15 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

The case describes and discusses the organizational and strategic challenges of outsourcing research and development (R&D) activities from Denmark to China. Nokia Denmark was founded in 1996 as a subsidiary of the Nokia Corporation and contained the largest Nokia R&D unit, concentrating on the development of mobile telephones, outside Finland. In 2007, Nokia Denmark received instructions from corporate headquarters to drastically increase the number of mobile phones developed. Motivated by the need to release pressure on its in-house capacity, Nokia Denmark decided to outsource certain product development projects to the Taiwanese company Foxconn in a joint R&D (JRD) setup. Foxconn, one of the world’s largest electronic component manufacturers, which was also developing products for many of Nokia’s competitors, was given the responsibility of developing and testing selected standardized and less complex mobile phones, while more complex and sophisticated technology projects were retained in-house. However, by 2010, Foxconn had become a central figure in Nokia Denmark’s product development process with responsibility for increasingly complex projects. Given the increasing importance of Foxconn for Nokia Denmark, the rising pressure from the corporate headquarters and the competitive market environment on products and costs, Nokia Demark thus faced a central question on how to proceed with the JRD. Three alternatives were outlined for the future of Nokia Denmark’s JRD with Foxconn: the management could decide on scaling up, phasing out or continuing the status quo.

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Case Solution for Coloplast: Ten Years of Global Operations

Complete Case details are given below :

Case Name : Coloplast: Ten Years of Global Operations

Authors : Marcus Moller Larsen, Torben Pedersen

Source : Ivey Publishing

Case ID : W12101

Discipline : General Management

Case Length : 16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

Description for case is given below :

In just a decade, the Danish health care product manufacturer Coloplast underwent a major transformation from a local Danish manufacturing company to a truly multinational corporation. In 2001, Coloplast conducted all its production in-house in three production facilities in Denmark. Ten years later, the company had relocated almost 90 per cent of the production to four different countries, with the majority in Hungary and China. However, a transformation of this caliber rarely comes without challenges. Coloplast’s relocation of production abroad had to a large extent been carried out through a trial-and-error process without an overarching corporate strategy. In this process, the company had experienced many challenges. Although Coloplast had by 2011 successfully identified and changed the critical issues created by the offshoring initiatives, the executive management now faced a substantial challenge in understanding what the company had learned over the last 10 years and how it could excel based on this history.

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