Coloplast

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COLOPLAST A/S — ORGANIZATIONAL CHALLENGES IN OFFSHORING

w
9B08M031

Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2008, Ivey Management Services
Educational material supplied by The Case Centre Copyright encoded A76HM-JUJ9K-PJMN9I Order reference F240103

Version: (A) 2008-06-24

INTRODUCTION

Director Allan Rasmussen took a good deal of pride in the achievements of Coloplast A/S1 (Coloplast) in Tatabánya, Hungary. In consecutive quarters in 2004, the plant had outperformed the company’s longer established Danish production units in quality levels (see Exhibit 1). Rasmussen had been the Tatabánya plant’s manager, its first, since 2001. Just three and a half years later, he was responsible for the daily management of a plant with a head count of 550 and production valued at 1.5 billion Danish kroner (DKK). In 2005, he resumed his position as director of Coloplast’s Danish subsidiary and returned to Denmark. With the Hungarian operation, Coloplast had learned important lessons in designing and implementing a relocation process, and in managing the communication involved. Although Coloplast had some minor production facilities outside of Denmark, the scope of its involvement in Hungary was unparalleled. When the expansion was completed, the Hungarian unit would employ 900 staff — roughly 15 per cent of the company’s total workforce. Coloplast’s involvement in Tatabánya was part of the…...

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