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Case Study

NCC Construction Danmark (A): Back to profitability

By Balaji S. Chakravarthy and Sophie Linguri Coughlan

17 pages

November 2011

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Reference: IMD-3-2202

This two part case series describes the transformation challenge faced by a European company, NCC Construction Danmark A/S (NCC DK), belonging to one of the oldest industries in the world – construction. Even though the context is construction, the lessons that this case provides should appeal to other European companies and industries as they simultaneously seek to reposition themselves for the new times and new opportunities in Europe and beyond. Case A describes NCC DK’s fight back to profitability from the brink of bankruptcy after the residential construction bubble burst in Denmark in 2006. After becoming the CEO of NCC DK in October 2006, Torben Biilmann and his top management team led a three-phase transformation that led the financially troubled company back to prosperity: Stabilization (2006-2007); Efficiency and Sustainability (2008-); and Business Development (2009-). The storyline has many of the elements to be found in a classic transformation, including restructuring, renovation and renewal. Case A provides a platform for exploring how Biilmann and his leadership team put NCC DK back on the road to profitability by concentrating on five Must-Win Battles (MWBs). A four part video (total runtime 21′ 44”) supplements the case. The first (7′ 17”) is an interview with Torben Biilmann (CEO, October 2006 – May, 2012) and Martin Manthorpe, Senior Vice President (Strategy) on the tough restructuring and renewal described in Case A. The second (5′ 19”) is an interview with the same two executives on the role of VDC in moving the construction industry to the 21st century and creating new opportunities for NCC DK. The third (7′ 4”) is an interview with Klaus Kaae (the company’s CEO since June 2012) and Manthorpe on the concept of “Co-Creation” and the opportunities and challenges for the company in driving this concept. The final part of the video (2′ 4”) is a short reflection by Biilmann on the lessons for other European companies from NCC DK’s experience.

Learning Objective

Provide a basis for senior executives (especially from European companies) to discuss company and industry transformation so as to sustain profitable growth even in maturing industries. Even though the context is construction, the disciplined approach to execution of NCC DK and its proactive approach to strategic renewal can offer pointers to other European companies as they battle industry maturity. The case can also be used in MBA class rooms to address restructuring and renewal.

Keywords

Corporate Transformation, Project Management, Key Customer Program, Construction, General Management, Strategy

Settings

Denmark
2006-2012

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

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This case study is part of a series

NCC Construction Danmark (A): Back to profitability
NCC Construction Danmark (B): Transforming the industry

2012 AESE AWARD WINNER (New Times, New Opportunities)

This case study is part of a series

NCC Construction Danmark (A): Back to profitability
NCC Construction Danmark (B): Transforming the industry

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Summary

This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.

Reference IMD-7-2618

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Industry Consumer Goods, Home Appliances

Available Languages English

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