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Coloplast Organizational Structure

Good Essays

Case: Coloplast organization structure before and after

March 09, 2012
1.P

Jeanette Thomasen
Hunan Resource

Introduction
Coloplast one of Denmark largest medical company faced in 2007 growth challenges and was obliged to take action in order to put the firm back on track. These challenges were solved by looking at its organizational structure. In this case Coloplast structural organization before and after the changes will be closely looked at.

Task 2
Analyze Coloplast’s organization structure before and after the changes and state your opinion about the organization’s design.

Organization design
Coloplast went from a production structured organization to a functional structured organization. In the production …show more content…

It may happen that each local division create its own culture witch may not necessarily be compatible with the company’s culture as a whole.
The limited communication between divisions makes it hard for them to exchange experience and expertize. This system by nature is heavy and costly. In order for the company to have all the necessary resources and functions within each division, they can’t afford the best expertize on every field.

After: the functional organization

The new organizational structure focuses more on functions. Unlike the previews structure that focused on the product. This new structure pulls functions out of the different divisions and put them in centralized units, each specialized in respectively Globale Maketing, R and D and Global Operations. As a consequence, the former divisions are reduced to production units and subsidiaries; that receives instructions from the top. To assure communication between top and bottom, Coloplast place Commercial Excellence above the whole new structure.
With the three functional divisions, Coloplast makes sure that there a clear purpose that goes all the way through the whole company, when it comes to their global marketing, innovation and how new products should be developed. As a result Coloplast becomes a unified company with no duplications of tasks.

The greatest advantages of this functional centralized structure is its lightness and

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