Managing People and Organisations COLOPLAST A/S – ORGANISATIONAL CHALLENGES IN OFFSHORING 14 July 2010 Word Count – 4072 Contents 1. Executive Summary4 2 . Introduction5 2. 2 Coloplast Products and Revenue Contribution in Percentage. 5 2. 3 Distribution of Global Sales6 3. External Environment of Coloplast6 3. 1 Reimbursement Policy Change6 3. 2 Ruling and Opposition Parties7 3. 3 Medical Science Advancements7 3. 4 Labour Laws7 3. 5 Harmonization of health care systems7 3. 6 Market & Currency Fluctuations7 3. 7 Forum for addressing best practice8 4. Four Dimension of Complexity8 . 1 Multiplicity8 4. 2 Interdependence8 4. 3 Ambiguity8 4. 4 Flux8 5. Internal Environment of Coloplast A/S9 5. 1 Coloplast – Denmark9 5. 2 Goffee & Jones model10 Sociability10 Solidarity10 5. 3 Hofstede’s Cultural Dimensions. 11 5. 3. 1 Power Distance Index (PDI)12 Key Implication12 5. 3. 2 Individualism (IDV)12 Key Implication13 5. 3. 3 Masculinity (MAS)13 Key Implication13 5. 3. 4 Uncertainty Avoidance Index (UAI)13 Key Implication13 5. 3. 5 Long-Term Orientation (LTO)14 Key Implication14 6. Employees Motivation and Commitment14 6. 1 Key Implications on future management14 . 2 Motivation15 6. 3 Motivation Theories15 6. 3. 1 Content Theory15 Herzeberg’s Hygiene Factors and Motivators15 6. 3. 2 Process theory16 Goal Setting Theory16 7. Recommendation to Rasmussen16 7. 1 Kotter’s Implementation Plan17 8. Bibliography19 9. Appendix20 1. Executive Summary Coloplast A/s Values – Our values define the way we think and act, both as individuals and as a company. As an appointed Management Consultant of Coloplast to assist Allan Rasmussen, Director of Coloplast A/S on critical imminent decision about the off shoring ventures to Hungary and China.
My report covers the below scope. * Key factors that contributes to the External Environment of the Global medical devices Industry in the current condition. * Analysis of Internal Environment of Coloplast A/S * Motivation and Future Management of Coloplast A/S * Off shoring Recommendation to Rasmussen Coloplast has been in the global market in terms of distributing their products in Europe and America. However in terms of production, Denmark has been the base of the production unit.
To achieve 10% organic sales growth, it is important for the organisation to generally reduce costs, among other things by continuing to relocate production to low-wage economies and on being strongly focused on maintaining cost-conscious behavior. “Change is the only constant” – Heraclitus, Greek philosopher What was true more than two thousand years ago is just as true today. We live in a world where “business as usual” IS change. New initiatives, project-based working, technology improvements, staying ahead of the competition – these things come together to drive ongoing changes to the way we work.
As an organisation, relocation of the volume production to Hungary was the first attempt by the Coloplast to shake the apple cart. Analysing the lessons learnt during the relocation Hungary has already given vital clues to the organisation to think about other ventures. The next off shoring destination China is challenging in terms of moving the production line,
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