Dansk Design Limited

Essay by valisevoUniversity, Master'sA-, June 2005

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*It will probably be educationally most effective if the student works out his/her analysis before reading this one.


The strategy of Dansk appears to be to maintain a growth in earnings from 15 to 20%. It is assumed that to maintain this level of growth a wide range of new products, to be marketed under the title, "Dansk Gourmet Designs Ltd.," will be needed. Ted Nierenberg, the owner of Dansk, has expressed a desire to be out of the business by 1973 (in three years). Also, Ted has expressed his belief that Dansk will be acquired or will go public in the future.

There are problems with the expressed strategy in that the perceived market opportunity may not be well suited to the Dansk organization, and Dansk may not have the capability to carry out his strategy.

There are indications that the market for existing Dansk products has not been exploited, and that suppliers are more scarce than customers.

The new products to be developed are in a different market segment, with different customers and different competitors. The new lower-priced, mass-produced products may not fit the present Dansk image, and certainly will not fit the existing marketing and distribution methods.

There are indications of a lack of leadership. The present methods of distributing stocks and of assigning teams (Burt and Jens, for example) are not well suited to the individuals involved. Also the assumption that a company will have to get outside capital is not true if high profit margins are maintained and the owners do not take their funds out of their business.

The organizational structure and the incentive system are not productive. There seems to be an unwillingness to accept orders from anyone but Ted. In part this is because there is no...