Abstract - Dansk Designs Case
The case describes a new product development situation: Dansk Designs was operating in premium segment, since Ted Nierenberg - the CEO expressed his commitment "to maintain the current growth in earnings from 15 to 20%", the company decided to enter the medium price segment with new line of products. The obvious restraints they have to face are technology (from craft to standardized), market (from creativity to profitability) and the organization (changes to adapt the mass production).
The internal factors, such as the size, and the external factors, such as market and technology factors have a big effect on the change of the strategy. At the same time, the endogenous and exogenous factors interact with each other. For one thing, the endogenous ones have a big effect on the exogenous ones. While the need of growth contributes the larger of size, the company could not use so many human to continue the craft because it would cost much more. So the technology changes from craft to standardized. About the market, the conception changes from creativity to profitability. With the aim of profit, it would change its market segment to large one and medium to low one. For another, the exogenous ones affect the endogenous ones. With the change from craft to standardized of technology, it need restructuring and the rise of size to support the need of mass production of standardized ones and create a new production line. Considering the interaction of internal and external factors, the company could design the new form and decide the strategy.
As we can see, in the old form of Dansk Designs, Ted Nierenberg, Quitsgaard and Lubell were the managing team, they decentralized their jobs, everyone managed different parts. However, as the new line of medium price food occurs, they should change the form of their company. We have a suggestion that...