Case ID: IMD079
Solution ID: 36243

Revolution at Oticon A S A Case Solution

Case Solution

In the mid-1980's, Oticon A/S, a Danish manufacturer of high-quality assistive hearing devices, starts to see significant deficits and falls from the No. 1 market position to 3rd position. A recently named CEO, Lars Kolind, initiates a substantial cost reduction and products rationalization program, which results in an impressive turnaround, rebuilding the organization once more to profitability. Kolind, however, doesn't believe that these changes have brought to some sustainable competitive advantage and that he further introduces an image for Oticon A/S headquarters that will entail a simple restructuring and transformation from the organization. Management and employees revolt and refuse an organized move of headquarters. Should Kolind proceed using the suggested radial change, or has this recent turnaround been sufficient to revive Oticon to the No. 1 position? A 1994 and 1995 ECCH award champion. Might be combined with


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