Coloplast: Ten Years of Global Operations
(10 pages of text)
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 had largely been carried out through a trial-and-error process without an overarching corporate strategy. In this process, the company had experienced many difficulties. 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 Coloplast had learned over the last 10 years and how it could excel based on this history.
The case examines the organizational and managerial challenges involved in offshoring and internationalizing substantial portions of a firm’s organizational activities to foreign countries. Students will need to consider the learning journey Coloplast underwent in this process, from managing the reconfiguration to the implementation of a new and complex organizational design. The case is suitable for both undergraduate and graduate levels and can be used in courses concerning corporate strategy, international business, and organizational design and learning. While the case is broad in scope, it also goes into detail on a range of issues. The main teaching objective of the case can therefore be adjusted to the aim of the course. The topics range from offshoring and international business to organizational design.
Health Care Services
Denmark; Hungary; China, Large, 2001-2011
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