The Case Series in Management of technology, NO 2. Corporate Strategy, Economic Organization and Management of Technology

This case is one of a series of cases on strategy, organization and management of technology headed by Jens Frøslev Christensen at Department of Industrial Economics and Strategy, Copenhagen Business School. The objective of these cases is twofold: to generate empirical inputs from business practice for use in ongoing research as well as in case-teaching exercises within the field of Management of Technology. This case study of Danfoss does not pretend to give a full and final account of Danfoss. The study provides a description of the overall corporate development with a primary focus on changes in corporate organization, strategy and management of technology during the 1990s. There is a bias in the case towards a corporate top-down perspective, while the perspective from the individual divisions is missing. We would like to thank Vice President Hans Jørgen Pedersen and Manager Vibeke Gustafs-son, Danfoss, who have contributed significantly to this case through several interviews con-ducted since January 1996 and extending to the most recent one in April 1999. We also thank them for granting access to a number of internal documents. In addition, this case builds on many published articles and books. Historical information is primarily based on two books: Boje and Johansen: En iværksætter (1994), and Hansen: Danfoss - arven fra Mads (1994). In September 1999 Danfoss announced the merger of its largest division, Mobile Hydraulics Division, with the large German/American company, Sauer Inc. to become effective from Ja-nuary 2000. Since the details of the merger and the organizational arrangements have not been settled at the time of writing, the merger will not be analyzed in this case study. The authors gratefully acknowledge the contribution to this study from CISTEMA (Center for Inter-disciplinary Studies in Technology Management), DRUID (Danish Research Unit for Industrial Dynamics) and Department of Industrial Economics and Strategy at Copenhagen Business School.