Innovation and Organizational Vitality

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Innovation and Organizational Vitality

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Title: Innovation and Organizational Vitality
In an International Company
Author: Kernø Jørgensen, Kasper
Abstract: Quilt of Denmark – in short QOD – is a Danish producer of bedding material in form of duvets and pillows. QOD was established in 2000 and produce at its own production facility in the western part of Denmark. The founders have a long experience in producing and selling commodity based bedding material out of China, but have also had a vision of producing and selling premium quality products based on European raw material and production skills. After having consulted their main customers and made some market research the founders saw enough market potential to establish QOD and built a state-of-art production facility to supply the upper segment of the bedding market. From the very beginning QOD employed experienced people so no steep learning curve was needed and great autonomy and responsibility was given, which benefited the company in this stage of the life-cycle. QOD soon realized that making premium products was not sufficient to be successful. They also had to be innovative and if possible even be the front runner of the industry. In consequence they applied a NASA-developed technology to give their beddings new improved features. This proved to be a good strategy as the new bedding-concept was exceptionally well accepted by the market and within short placed QOD in a front position in the bedding market. Through a series of innovative developments QOD has managed to keep this position and is today a medium-sized company with a very high export share. Although only 13 years of age QOD has already been through several stages of a company´s lifecycle and experienced the opportunities and challenges each individual stage represents. They have learned that what is beneficial in one stage of the company life may have to be changed in the next stage in order to remain vital. They have also learned that they must focus on organizational goals, production efficiency and administrative routines even though the founders are mostly entrepreneurial and market oriented. Furthermore QOD has learned that they must focus on their core business, which is duvets and pillows in order not to waste resources on side projects, where they have no competitive advantage. In the company's learning curve, the personal capacities and specific qualifications of the individual employee have been taken into consideration in order to be effective. It is important that there is a good mixture of Entrepreneurial spirit, Production effectiveness, Administrative discipline and Integrational feeling to make the organization function. QOD has managed to come through several different stages of the company life-cycle. Most things they have made right, but they have also made mistakes. However, they have been quick to realize when it was necessary to make changes and they are now maturing and further organizing for the future.
URI: http://hdl.handle.net/10417/4766
Date: 2014-10-31
Pages: 96 s.
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