Danfoss – Global Manufacturing Footprint Harvard Case Solution & Analysis

The case examines the supply chain management and organizational challenges faced by European industrial companies compete in a mature industry with a strong pricing pressure. Founded in 1930 in Southern Jutland, Denmark, Danfoss initially produced automatic valves for refrigeration. Since then the company has grown into a major industry group. Until the mid-1990s, Danfoss was a Europe-oriented, with the majority of its sales and production. That changed, however, with the arrival of the founder's son, Jørgen Mads Clausen, as the new CEO. He initiated the process of changing the company into a global player throughout his main areas of business. After that, the process of internationalization, the company is faced with different challenges. There are three main problems that management is concerned about: namely, the production of Danfoss in the network, its continued growth in the global economy and its highly engineered based culture. The first problem arose from the fact that Danfoss followed a strategy of one product per plant. This means that all of its factories have been created to focus on the production unit. This has created a situation with a lot of very specialized production lines and very little in common between them. On the other hand, the internationalization strategy so far has been very successful for the company Danfoss in Eastern Europe and China. In the U.S., however, the company is still struggling, despite significant investments in its manufacturing facilities in Mexico. In China, the company has experienced success and wanted to provide long-term growth in the market. The third question was a very engineering-based culture of the company, which, among other things reflected in the fact that Danfoss products previously developed by consumer demand and preferences. "Hide
by Torben Pedersen, Jacob Pyndt Source: Richard Ivey School of Business Foundation 19 pages. Publication Date: May 25, 2011. Prod. #: W11283-PDF-ENG

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