Case Study

Oticon: Building a flexible world-class organization (B)

3 pages
September 2005
Reference: IMD-3-1501

The B case begins in 1992 with the arrival of Niels Jacobsen at Oticon. Jacobsen, who was appointed executive vice-president, provided equilibrium to Lars Kolind’s outgoing management style, and was valued for his ability to manage the operational side of the business. Upon his arrival, Jacobsen discovered that Oticon had serious cash flow problems and a weak balance sheet. The case ends in 1997 with Jacobsen and Kolind disagreeing strongly over Oticon’s future strategy. Kolind believes that Oticon should continue to pursue a niche strategy, while Jacobsen believes that Oticon should become a full line supplier.

Change Management, Organizational Development, Hearing Aids
Field Research
© 2005
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