Class : IB01
Teacher : Menno de Lind van Wijngaarden
Case Study : 2, Kongstrup Machine Factory
Date : 09-24-2013
1: Michiel Witting
2: Frederic Küpers
3: Cas Schoonderwoerd
1. List the challenges facing Kongstrup after the collapse of the alliance with MB. How could they have prepared better for the break-up?
All distribution and sales activities were in complete ruins after the cancellation.
They should be involved whit the distribution and sales activities while they had a contract with MB and not let MB do all the work. Then it wasn't all ruined because they know what to do with the distribution and sales activities. The functional …show more content…
It all starts with carrying out the product development, because no standard development approach could be planned. Then the market of combines declined and led to large production overcapacity. The whole text is full of examples like this that prove that there was a big uncertainty for the company’s external environment. The best example would be the cooperation between Konstrup and MB. Regarding the external environment of the producing side, they should be less dependent, because if MB would have fallen away, then they would have lost 85% of their income.
1. Less dependent (at least less resource dependent)
2. More skilled workers (especially for management)
3. More forecasting and planning (to prevent a second loss, such as in 1990)
4. Watch the competition across the oceans (to prevent big surprises that can occur when moving to a international strategy)
4. Make a new organizational structure for Kongstrup, based on their current situation and that builds further on their strengths while it prepares them for international expansion.
The new structure, which Kongstrup should introduce to achieve all the goals they set themselves while focusing on their strengths is an international division structure. The reason for this being the best structure for Kongstrup is the fact that they are good at what they produce but need to improve on their skills in sales and distribution. Kongstrup should divide between domestic