LM Windpower 05122013-3 PDF

Bachelor of International Sales and Marketing Management
Professionsbachelor International Handel og Markedsfring
LM Wind Power
Written exam 1st semester/Skriftlig eksamen 1. semester
9th January 2014/9. januar 2014
The basis for the companys sale / Virksomhedens salgsgrundlag
This examination paper consists of 4 assignments. For grading purposes the

assignments are given the following approximate weights
Dette opgavest bestr af 4 opgaver, der indgr i bedmmelsen af den samlede

opgavebesvarelse med flgende vejledende vgte:
Assignment 1/Opgave 1: 20 %
Page/Side 1
Contents/Indhold
Assignments in English 3
Opgaver (p dansk) 6
History 9
The case for wind 9
Strategy 10
Vision and mission 11
Organization 12
Patents 13
Letter from the CEO 14
Appendix 1 18
Page/Side 2
Assignments in English
Assignment 1 (20%)
Assignment 1.1. (5%) Please give a short description of the possibilities for LM Wind Power
to register new patents internationally.
Assignment 1.2. (10%) Imagine a Polish supplier of goods for the production at the Kolding
location in Denmark on Friday 4 October 2013 has forwarded an offer to LM Wind Power by
e-mail. The e-mail was received immediately in Kolding. Monday morning on 7 October
2013 the Polish supplier forwarded a revocation of the offer justified by increasing in duties
in Poland which the supplier had not taken into consideration as the supplier forwarded the
offer. The revocation was forwarded by e-mail and received in Kolding at 07.30 AM. The
offer was at that time not read by any of the employees at LM Wind Power.
The offer was forwarded with among other the following condition: The offer is made
according to Polish law.
Is the Polish supplier bound by his offer? Please give a justified answer.
(Both Denmark and Poland have adopted the CISG).
Assignment 1.3. (5%) The offer was forwarded with among other the following conditions:
DDP Kolding (Incoterms 2010) and Any disputes shall be settled by Polish courts. If the
parties disagree will it then be possible for LM Wind Power to sue the Polish supplier at LM
Wind Powers venue in Denmark? Please give a justified answer.
Assignment 2 (25 %)
According to the CEO of LM Wind Power, Mr. Leo Schot, the market for wind energy is
expected to show growth, particularly in emerging markets, with price and delivery being
primary competitive factors. Based on this, please evaluate the supply chain structure
chosen by LM Wind Power. Your answer has to include as a minimum an evaluation of their
chosen strategy of growth through integration and acquisitions.
Assignment 3 (25%)
Imagine LM Wind Power produces and sells a niche product, a customized wing, to some of
their customers. The annual production capacity of the customized wings is 30 wings.
LM Wind Power has implemented a new cost control system as the CFO suspects a number
of these customers for not being profitable and therefore wants a review of the total costs
of the customers. The customers have been divided into two customer segments A and B
Page/Side 3
and each segment purchases 15 wings annually. The sales price is DKK 500,000 per wing.
Assignment 3.1. (10%):What is the operating result of each customer segment? Discuss the
possible reasons for the level of the indirect costs.
The direct costs per unit amount to (in DKK):
Material costs 180,000
Labor costs 250,000
The indirect costs have been calculated according to the Activity Based Costing system and
amount to (in DKK):
Activity cost Total annual

Activities Activity cost driver driver quantity costs
Customization of products No. of parts in product 100 1,100,000
Processing and control No. of controls 8 300,000
Delivery to customers No. of deliveries 25 600,000
The indirect costs for 15 wings should be allocated to each customer segment based on the
activity cost driver quantity:
Customer Customer
segment A segment B
No. of parts in product 60 40
No. of controls 6 2
No. of deliveries 10 15
Page/Side 4
Assignment 3.2. (5%)
The CFO prefers production at full capacity.
Discuss the reasons for his preference and consider relevant risk factors which might cause
excess capacity.
Assignment 3.3. (10%)
Imagine LM Wind Power's sales department would like to acquire new customers. Before
further decision making, the CFO would like you to make a few calculations and
assessments.
The expected acquisition costs for each customer is DKK 500,000, the expected annual
operating profit is DKK 150,000, the discount rate is 10% and the expected customer life
time of the new customer X is 6 years and the new customer Y is 4 years.
Calculate the expected profitability of each new customer and assess the attractiveness for
LM Wind Power.
Calculate and comment on the required minimum annual operating profit for each of the
new customers.
Assignment 4 (30 %)
The industry is moving towards an increasingly project-orientated model as financial and

political uncertainty continues (Leo Schot Chief Executive Officer).
LM Wind Powers customers, i.e. the windmill producers, move towards more project focus
operations rather than series production. Please consider how this change influences the
organizational buying behavior of LM Wind Powers customers.
Furthermore, analyze LM Wind Powers business model and based on this discuss whether
it is the right business model to fulfill the market need.
It is required that you include considerations about LM Wind Powers 15 regional service
centers across three continents, in your analyses.
Page/Side 5
Opgaver (p dansk)
Opgave 1 (20%)
Opgave 1.1. (5%) Giv en kort beskrivelse af mulighederne for LM Wind Power til at
registrere nye patenter internationalt.
Opgave 1.2. (10%) Antag, at en polsk leverandr af varer til produktionen i Kolding i
Danmark fredag den 4. oktober 2013 har fremsendt et tilbud til LM Wind Power via e -mail.
Mailen blev straks modtaget i Kolding. Mandag morgen den 7. oktober 2013 sendte den
polske leverandr en tilbagekaldelse af tilbuddet begrundet med en stigning i en afgift i
Polen, som leverandren ikke havde taget i betragtning, da leverandren sendte tilbuddet.
Tilbagekaldelsen blev fremsendt via e- mail og modtaget i Kolding kl 07:30. Tilbuddet var
p dette tidspunkt ikke lst af nogen af de ansatte hos LM Wind Power. Tilbuddet blev
fremsendt med blandt andet flgende betingelse: "Tilbuddet udfrdiget i henhold til polsk
lov".
Er den polske leverandr bundet af sit tilbud? Giv et begrundet svar.
(Bde Danmark og Polen har tiltrdt CISG)
Opgave 1.3. (5%) Tilbuddet blev fremsendt med blandt andet disse betingelser : "DDP
Kolding ( Incoterms 2010)" og "Eventuelle tvister skal afgres ved polske domstole. Hvis
parterne bliver uenige, vil det s vre muligt for LM Wind Power at sagsge den polske
leverandr ved LM Wind Powers vrneting i Danmark? Giv et begrundet svar.
Opgave 2 (25 %)
I flge direktren for LM Wind Power, Mr. Leo Schot, forventer man vkst p markedet for
vindkraft, specielt p vkstmarkeder, med pris og levering som de primre
konkurrencefaktorer. Baseret p dette skal du evaluere LM Wind Powers valgte supply chain
struktur. Din besvarelse skal som minimum indeholde en evaluering af deres vkststrategi
hvor de fokuserer p integration og opkb.
Opgave 3 (25%)
Antag, at LM Wind Power producerer og slger et niche produkt, kundetilpasset vinge, til
nogle af kunderne. Den rlige produktionskapacitet for de kundetilpassede vinger er 30
vinger.
LM Wind Power har implementeret et nyt omkostningskontrol system, da CFO er i tvivl om,
Page/Side 6
hvorvidt disse kunder er lnsomme og nsker derfor en gennemgang af de samlede

omkostninger for kunderne. Kunderne er opdelt i to kundesegmenter A og B, og hvert
segment kber rligt 15 vinger. Salgsprisen er DKK 500.000 per vinge.
Opgave 3.1. (10%)
Hvad er driftsresultatet for hvert kundesegment? Diskuter mulige rsager til strrelsen af
de indirekte omkostninger.
De direkte omkostninger per enhed (i DKK):
Materialeomkostninger 180.000
Arbejdsln 250.000
De indirekte omkostninger er beregnet efter Activity Based Costing systemet (i DKK):
Activity Based Costing
Activity cost Samlede

Activities Activity cost driver driver quantity rlige omk.
Kundetilpasning af produkter Antal dele i produkt 100 1,100,000
Process og control Antal controller 8 300,000
Levering til kunder Antal leveringer 25 600,000
De indirekte omkostninger for 15 vinger skal allokeres til hvert kundesegment baseret p
activity cost driver quantity:
Kundesegment A Kundesegment B
Antal dele i produkt 60 40
Antal controller 6 2
Antal leveringer 10 15
Page/Side 7
Opgave 3.2. (5%)
CFO foretrkker en produktion p fuld kapacitet.
Diskuter rsagerne for hans nske og vurder relevante risiko faktorer, som kunne
forrsage ledig kapacitet.
Opgave 3.3. (10%)
Antag, at LM Wind Powers salgsafdeling nsker at erhverve nye kunder. Inden beslutningen
kan foretages, vil CFO gerne bede dig foretage et par beregninger og vurderinger. De
forventede omkostninger ved erhvervelse af hver kunde er DKK 500.000, det forventede
rlige indtjeningsbidrag er DKK 150.000, kalkulationsrenten er 10% og den forventede
kunde levetid for den nye kunde X er 6 r og for den nye kunde Y er 4 r.
Beregn den forventede lnsomhed for hver ny kunde og vurder attraktiviteten for LM Wind
Power.
Beregn og kommenter p strrelsen af det krvede minimums rlige driftsoverskud for

hver af de nye kunder.
Opgave 4 (30 %)
The industry is moving towards an increasingly project-orientated model as financial and

political uncertainty continues
Leo Schot
Chief Executive Officer
LM Wind Powers kunder, vindmlle producenterne, bevger sig mod en mere

projektorienteret tilgang i stedet for serieproduktion. Overvej hvordan denne ndring
pvirker deres kbsadfrd. Endvidere skal du gennemfre en analyse af LM Wind Powers
forretningsmodel og diskutere, om det er den rigtige forretningsmodel til at i mdekomme
markedets behov.
Det er et krav, at du inddrager overvejelser om LM Wind Powers 15 regionale service centre

placeret p tvrs af tre kontinenter i analysen.
Page/Side 8
Source: www.lmwindpower.com (October 2013 as amended December 2013, accordingly

there might be minor differences from the current website)
History
Lunderskov Moebelfabrik or LM quickly began exploring the possibility of using glass fiber
and by the early 1950s had changed its name to LM Glasfiber. This intrinsic knowledge of
these advanced materials and a hard-earned understanding of the principles of wind energy
have stood the test of time and have helped LM Wind Power maintain its position as market
leader in wind turbine blades for decades.
Although it wasnt until 1978 that we began to manufacture wind turbine blades, the 50s
marked the beginning of the heritage and continuing achievements of LM Wind Power. Soon
after the millennium, one of Europes most successful private equity firms, Doughty
Hanson, came calling and we have since embarked upon a strategic expansion with a global
manufacturing footprint.
In early 2009 LM Glasfiber joined the Global Wind Alliance to expand its Service & Logistics
function. In less than a year, the Service & Logistics function was carved out of our blades
business to form two separate entities LM Wind Power Blades and LM Wind Power Service &
Logistics.
The case for wind
The global demand for electricity alone is projected to grow by nearly 80 percent between
now and 2030. The over-reliance on fossil fuels and its environmental cost combined with
wind energy becoming increasingly cost competitive rests the case firmly with wind.
A modern wind turbine produces 180 times more electricity at less than half the cost per
kWh than the most efficient turbine 20 years ago. This staggering statistic points to wind
energys coming of age and its onward journey of promise into a reliable and cost
competitive, renewable energy source.
The maturing of the wind industry has led to more efficient value chains and growing
economies of scale, and can already compete with coal and gas in certain circumstances. As
the price of emitting Co2 rises, the relative cost of wind power has improved even more.
Page/Side 9
In burgeoning economies of Asia and countries like Brazil with a large populace, wind
energy is making a massive difference. Consider this, the BJ Quanting Wind Farm in Beijing,
China, which is powered by LM Wind Powers wind turbine blades covers the electricity
needs of a 100,000 families a year.
Clean Energy
According to the IPCC - Intergovernmental Panel on Climate Change, hazardous greenhouse
gas emissions from fossil fuels are set to increase anywhere between 25-90% in the next 25
years if action is not taken immediately to halt the development. The power sector currently
accounts for over 40% of global Co2 emissions.
If nothing is done to change the fuel mix, Co2 emissions from power generation will
increase by more than 60% by 2030. This is where wind can help make a difference.
Strategy
As market leaders and pioneers in the ever-growing wind industry for over thirty years, we
know what it takes to remain at the absolute forefront. Quick response to industry
challenges and a clear vision for the future is an enduring legacy at LM Wind Power.
Our strategy, the Power Plan 2015 will take us further down this illustrious path to our
desired destination as the industrys leading company turning wind into cost competitive
energy. A clean, efficient, well designed modern LM Wind Power house governed by our
guiding principles -Quality, Customer and Cost, will chart the course of Power Plan 2015.
The clear and transparent walls of our three strategic rooms Value Chain Positioning,
Enterprise Development & Cost Efficiency and Customer Focus & Innovation, are designed
Page/Side 10
to strike the best balance. This balance will enable us to retain our industry leading
position as a modernized, integrated, efficient industrial enterprise.
1) Value Chain Positioning The first of our strategic rooms is designed to strengthen our
core business by enabling us to expand our business portfolio, products and services.
2) Enterprise Development & Cost Efficiency The second strategic room will allow us to
reduce cost and develop ideas through direct cost reduction activities, global sourcing and
supplier management.
3) Customer Focus & Innovation This is a dedicated room for the needs of our customers.
This will encourage synergy, collaboration and innovation across the group to create
unique selling points and standardizing our processes to reduce time to market.
Our spacious but compact lobby not only offers a glimpse into our Groups roadmap for
strategic growth but also showcases our aspirations in shaping the global future of the
wind energy business.
Vision and mission
The LM Wind power Groups vision and mission statements are a collective declaration of
our intent and purpose. Our objective is to get our partners - our customers and suppliers -
to participate in our endeavor to create a sustainable planet and wind industry.
Our Vision
Although we are a dynamic organization that constantly pushes the barriers of imagination
and blade technology, our long term commitment to a sustainable future and a clean planet
overrides everything we do. This unwavering commitment towards the community and the
planet is something that we share with our equal partners in change, our employees,
customers and suppliers.
And Together we capture the wind to power a cleaner world.
Our Mission
The statement that best reflects our aspirations sits right on top of the ever expanding roof
of our House of Strategy.
LM Wind Power is the worlds largest manufacturer of blades, brakes and components. We
Page/Side 11
strive to be the preferred supplier to the wind industry, respected for our superior design,
technology and service making our customers more successful and wind energy more
compelling.
Organization
LM Wind Power is the worlds leading supplier of components and services to the wind
turbine industry. With over three decades of experience, we have established ourselves as
the preferred supplier of customers worldwide.
LM Wind Power Group employs over 5,100 people across four continents. We are
headquartered in Kolding, Denmark and has a Global Business Office in Amsterdam, the
Netherlands.
Our global manufacturing footprint includes wind turbine blade factories in China, USA,
India, Canada, Denmark, Spain, Poland and Brazil. Besides manufacturing units, we have
service centers at strategic locations all over the world to meet customers needs.
Expert service, never far away
Often wind farms are located in remote areas with difficult terrain. Therefore, we not only
had to be close to them but also had to provide expert help while maintaining the highest
Health, Safety and Environment (HSE) standards.
At a location near you

We have set up 15 regional service centers across three continents and all major wind
markets with the sole objective of being close to the wind farm owner. With LM Wind Power
around, wind farm operators can rest assured that their blades function with maximum
efficiency and minimum down-time.
Our engineers and technicians at our locations in Denmark, Poland, Germany, Spain, USA,
Canada, India and China are trained extensively at our regional service centers. The training
is rooted in our 30 years of know-how and the latest requirements to safety, quality and
performance.
HSE at the forefront

We emphasize on safety for every single task that we carry out. All activities are carried out
in accordance with the LM Wind Power Global HSE policy. All our Service & Logistics
contracts come with an HSE clause and projects are planned with a firm focus on Health,
Safety and Environment standards. Our philosophy - Nothing is so important that it cannot
Page/Side 12
be done safely.
Ownership
The principal shareholders of LM Wind Power Group are the partnerships of Doughty
Hanson & Co. Managers Ltd, a Private equity firm headquartered in London. As an
independent fund management company, Doughty Hanson & Co. has offices in London,
New York, Frankfurt, Madrid, Milan, Munich, Paris, Prague and Stockholm. Doughty Hanson
& Co.s principals have many years of experience in the successful management of
international private equity funds and have led and arranged a number of large acquisitions
and sales. It is the intention of our shareholders to work towards a listing of the LM Wind
Power Group on a stock exchange.
Patents
LM Wind Power received its first patent as far back as in 1968 for a special conveyor used
to transfer live fish into a lorry. Since we began developing and manufacturing wind turbine
blades in 1978, we have patented more than 170 inventions in this specialist field, and the
applications have, of course, become more frequent as our development activities
expanded.
Most of our current patents are within the fields of:
Lightning protection
Blade aerodynamics
Blade and rotor design
Production technology
Blade monitoring systems
Service and inspection systems
Logistics
Brake and yawing systems
Generating ideas - Our most important raw material
The innovation and patents department at LM Wind Power have implemented a special Idea
Management System, which helps employees come to the fore and share their new ideas.
Chosen ideas are offered financial backups for experimentation. Our objective is to
generate at least 80 completely new, well-considered ideas every single year, and to push at
least 30 of these ideas forward for patent protection.
Page/Side 13
Letter from the CEO
(Extract from the Annual report, 2012)
While overall, the commercial outlook for the wind sector over the mid to long term
remains positive, difficult market conditions prevailed throughout 2012 and additional
factors like regulatory uncertainty in key markets contributed to a volatile picture.
A difficult context
There were difficult market conditions to contend with during most of 2012 caused in part
by the overall turbulence in the global economy which affected each of LM Wind Powers
key markets in different ways. An additional factor, particularly visible in the US and India,
was uncertainty around the extension of financial measures supporting wind energy
growth.
Overall, economic conditions were challenging, with concerns throughout major economies
reflected most clearly in the financial markets where general uncertainty is still affecting
lending and liquidity. However, throughout the year, there was clear evidence that
fundamentals of the wind energy business remained strong and the outlook remains
positive for the medium to long term.
Wind continues to increase its share of overall renewable energy generation capacity and in
both environmental policy and fiscal measures we saw that strong political support remains
in place at both global and national levels.
Page/Side 14
The long-term drivers for wind energy development remain unchanged as the technology
moves closer still towards parity with conventional energy sources.
Growth continues
LM Wind Power adopts more prudent market forecasts than the key industry analysts.
However, even with additional gas resources becoming available which have held prices
low, our projection is 3% Cumulative Annual Growth Rate (CAGR) for the coming years,
which is considerably more conservative than forecasted by most respected market
analysts. We see particularly strong growth in emerging markets where the company can
leverage its global footprint which it is already expanding in Brazil and offshore where the
company can demonstrate a unique track record. Macroeconomic fundamentals driven by
growing energy demand, water shortages, energy security concerns and of course, the
continuing political will to address global climate change lead us to have firm faith in the
future of this business. Through continued advances in technology and improved
performance, wind energy is becoming increasingly competitive with conventional energy
sources, we are moving closer to grid parity and ultimately we expect wind energy
development will become much less dependent on government financial support.
Clear direction
The core strengths of LM Wind Power remain in place despite considerable external
pressures. The foundation of our success is our global manufacturing footprint and
continued advances in blade technology, with rotors becoming larger to meet demand in
lower wind areas onshore and ultimately offshore. We have demonstrated our ability to
leverage this flexibility in our manufacturing footprint to serve market demand wherever it
exists. While competition has increased, our market offering remains robust and continues
to underpin our financial performance versus the competition.
New leadership, new focus
Under new leadership in 2012, the company has become more focused and strengthened
its resilience. In addition to swift restructuring, we developed and implemented strategic
programs to manage the short-term challenges while keeping our eyes fixed on the
horizon. These programs were implemented with the discipline and rigor necessary to
deliver long-term enterprise value in response to changing market conditions. The
leadership team continues to demonstrate that it can act swiftly to control costs, improve
manufacturing performance and increase customer focus while implementing long-term
strategic measures based on sound analysis.
Cost control culture
Headcount reductions were significant in 2012 as manufacturing capacity was reconfigured
Page/Side 15
to serve reduced overall demand. However, the measures we applied across the group were
applied with the utmost care, maintaining our short-term viability while reconfiguring the
business to ensure that the functional support and capability we have shown in the past is
aligned with realistic and clearly defined plans for the future. There is no end to this
process, as a cost control culture is now installed throughout the group with
commensurate improvements evident in almost every area of the business.
We care
New leadership presents opportunities to reappraise the overall picture and to refresh
approaches to persistent shortcomings. It also provides fresh input to the long term view of
the business, its viability and its vulnerability. There was rapid evidence of the benefits
from reorganization. A leaner organization structure compells working more closely and a
high level of motivation continues among the management team based on the
implementation of renewed discipline in financial operations, cost reduction, sourcing,
manufacturing and sales.
Focus on cash maintains performance
We were compelled to reappraise our financial targets at the end of the first half of 2012
but were nonetheless able to keep our promises in the second half of the year with full year
revenue of EUR 753 million and EBITDA of EUR 75 million. Our performance was affected by
significant reductions in turnover in China and India and the delayed renewal of the
Production Tax Credit, a financial incentive to the industry in the United States, which
resulted in a slower than expected fourth quarter in that important market.
All regions were affected by much more significant reductions than predicted. A
combination of planned measures and intense financial controls together helped to steer
our course to the year end. Cost reduction programs and innovative responses to customer
requirements combined to ensure continued profitability. Among the most significant
challenges was the constant focus on cash, which required engaging customers
continuously to reduce overdue payments. A renewed approach to sourcing contributed to
cost control. Continuous dialogue and a partnership approach with key suppliers enabled
better working capital management.
Further improvements
The focus on safety which intensified during 2011 continued with additional momentum in
2012 with notable results in all geographies. Safety improved by most key measures and
this was achieved despite an increased challenge in production with the management of
change. The drive combines new processes, better sharing of internal knowledge and
lessons learned alongside specific overall management and personal targets to increase
motivation and awareness. More progress on the implementation of LEAN production
Page/Side 16
principles and process optimization in the manufacturing facilities also contributed

significant improvements realized in efficiencies and cost savings. Improved quality control
measures showed effects at every stage in the manufacturing process. Meanwhile new
technical innovation, leading-edge protection solutions, structural design and components
were introduced. These measures will enable the company to deliver blades of increasing
stiffness and length. We launched new rotors and continued to ramp up the Globlade
technology with the majority of revenue deriving from the newest blades.
On the Service and Logistics side of the business, further restructuring and focus delivered
a major increase in warranty resolution.
In the Brakes business we have seen impressive growth in the industry market segment.
During the year, we have also strengthened the Brakes organization in order to improve the
market share in wind while continuing the growth of the industry sector.
Potential in the coming year
While the exceptionally challenging market conditions will continue, the strategic programs
the company presently has in place will be implemented with discipline and rigor.
Customers continue to emphasize the necessity for high-quality products, with higher
performance, available where they want them. The industry is moving towards an
increasingly project-orientated model as financial and political uncertainty continues.
Nonetheless our flexibility and global footprint are exceptional strengths and enable us to
adapt to changing circumstances. In a market characterized by overcapacity, slower
demand and volatility, we remain focused on continuing our efforts in cash management
and cost-saving initiatives to ensure we can deliver new blades at competitive prices. We
are also able at the same time to find innovative solutions which will position us among the
industry leading customers to generate long term value and growth.
Leo Schot
Chief Executive Officer
Page/Side 17
Appendix 1
Page/Side 18

LM Windpower 05122013-3 PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

LM Windpower 05122013-3 PDF

Uploaded by

Copyright:

Available Formats

Bachelor of International Sales and Marketing Management

Professionsbachelor International Handel og Markedsfring

Written exam 1st semester/Skriftlig eksamen 1. semester

9th January 2014/9. januar 2014

The basis for the companys sale / Virksomhedens salgsgrundlag

This examination paper consists of 4 assignments. For grading purposes the

Dette opgavest bestr af 4 opgaver, der indgr i bedmmelsen af den samlede

The case for wind 9

Vision and mission 11

Letter from the CEO 14

(Both Denmark and Poland have adopted the CISG).

The direct costs per unit amount to (in DKK):

Material costs 180,000

Labor costs 250,000

Activity cost Total annual

Customization of products No. of parts in product 100 1,100,000

Processing and control No. of controls 8 300,000

Delivery to customers No. of deliveries 25 600,000

No. of parts in product 60 40

Assignment 3.2. (5%)

The CFO prefers production at full capacity.

Assignment 3.3. (10%)

The industry is moving towards an increasingly project-orientated model as financial and

Er den polske leverandr bundet af sit tilbud? Giv et begrundet svar.

(Bde Danmark og Polen har tiltrdt CISG)

hvorvidt disse kunder er lnsomme og nsker derfor en gennemgang af de samlede

Opgave 3.1. (10%)

De direkte omkostninger per enhed (i DKK):

De indirekte omkostninger er beregnet efter Activity Based Costing systemet (i DKK):

Activity Based Costing

Activity cost Samlede

Kundetilpasning af produkter Antal dele i produkt 100 1,100,000

Process og control Antal controller 8 300,000

Levering til kunder Antal leveringer 25 600,000

Antal dele i produkt 60 40

Opgave 3.2. (5%)

CFO foretrkker en produktion p fuld kapacitet.

Opgave 3.3. (10%)

Beregn og kommenter p strrelsen af det krvede minimums rlige driftsoverskud for

The industry is moving towards an increasingly project-orientated model as financial and

Chief Executive Officer

LM Wind Powers kunder, vindmlle producenterne, bevger sig mod en mere

Det er et krav, at du inddrager overvejelser om LM Wind Powers 15 regionale service centre

Source: www.lmwindpower.com (October 2013 as amended December 2013, accordingly

The case for wind

Vision and mission

And Together we capture the wind to power a cleaner world.

Expert service, never far away

At a location near you

HSE at the forefront

Most of our current patents are within the fields of:

Blade and rotor design

Blade monitoring systems

Service and inspection systems

Brake and yawing systems

Generating ideas - Our most important raw material

Letter from the CEO

(Extract from the Annual report, 2012)

New leadership, new focus

Cost control culture

Headcount reductions were significant in 2012 as manufacturing capacity was reconfigured

Focus on cash maintains performance

principles and process optimization in the manufacturing facilities also contributed