1. Identify the major problems in the company. Which of your identified problems is central or foundational?

The major problems identified are as mentioned below: 1) Captive factories Paternalistic relationship with the factories left little room for negotiation and comparison between suppliers to choose from. Informal arrangements meant the suppliers could back off and cause problems 2) Lack of capabilities to carry out production for new housewares line-Gourmet Dansk does not have manufacturing operations of its own. Meaning, they cannot produce the large volumes that would be required for its new line. 3) Lack of communication due to geographical separation and HQ/Market Most guys at Paris office spent their time writing to HQ. The cost of communication between the operations (production) and the Head Quarters was astronomical 4) Existing Distribution and Retail Channels unsuitable for the proposed expansion The selective distribution strategy might not suit the proposed expansion. As the high volume products require extensive presence in the market to achieve the level of sales that is profitable. 5) Over-dependence on Designers The designer would be the bottleneck for the company, thereby proving to be a major constraint for Dansks Expansion plans. The company might have to give to his demands. 6) Striking a balance between room for creativity within the constraints of Manufacturability . There is a conflict between designing for the sake of artistic pleasure and creating products which can be manufactured easily and marketed. 7) Lack of professionalism Another major issue facing the company is complete lack of professionalism; Right from the way suppliers is handled to the designers making unreasonable demands.

We think the combination of sixth and seventh problems identified above is the foundational problem for Dansk and its expansion plans.

2) What does the narrative tell you about 'professionally managed firms'?
Would you see professionalism as a source of problem or solution in this case? Dansk being entrepreneurial company over-reliance on Jens did not surface as a problem. The company was small, catering to a niche market. However Teds ambitious growth goals would necessitate a more professionally managerial approach. If the company wants to extend its product lines and maintain 15-20% growth, it will be left at the peril of founding designer,Jens. The company will be limited to Jens creative capacity. As can be seen in this case, Dansk experience a period of stagnation. Teds plans of making a market china jus remained a dream because Jens could not complete the job. Dansk moved away from its survival strategy, when it hired Neils ,and it was successful in implementing the its top of the table strategy . The Dansk-factory relationship also changed. This changes substantiate our view, that professionalism is a source of solution for Dansk to achieve its ambitious targets. On the other hand, Bringing in Professionalism into a creative domain in which Dansk operates can

prove counterproductive because it may antagonize the creative artists (designers in this case) Corroborating instances at Dansk: The professional feedback given by Ted was not taken well by Jen. Jens felt his work was not being appreciated and was being forced to design. When Ted hired Niels Refsgaard as a new designer, Jens perceived him as a threat to his position in the firm. The hiring was professional move with intent of expanding the organization it was negatively perceived by Jens, the founding designer. Even Niels Refsgaard did not take it well when Burt gave feedback on his designs. The artists might have a tendency to think that the people around are not qualified enough to work well in professional set-up.