Group 7, Project A

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Lauge Jensen in

Europe

How can Lauge Jensen survive and expand in Europe?

By: Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, EdvinasBlazevicius

VIA University College


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9 December 2011

Lauge Jensen in EuropeHow can Lauge Jensen survive and expand in Europe?


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The AP Degree in

Marketing Management

Authors: Povilas Andriukaitis, Sofalvi Elod,

Dragos Cojocaru, Ion Paul Angelescu, EdvinasBlazevicius

Assignment: Semester Project A

Supervisor: Anne Mette Bryde Nibe

Characters: 29155

Submitted: 9 December 2011

Table of Contents

Executive summary

1. Introduction............................................................................................................1

1.1 Background description/Problem area...........................................................1

1.2 Purpose..........................................................................................................1

1.3 Problem formulation..........................................................................................1

1.4 Delimitation.......................................................................................................1

2. Organizational and logistical capabilities...............................................................2

2.1 Company organizational structure....................................................................2

2.2 Supply chain management............................................................................3


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2.2.1 Logistics......................................................................................................3

3. Economics..............................................................................................................4

3.1 Presentation of the company............................................................................4

3.2 Internal situation...............................................................................................4

3.3 Price elasticity...................................................................................................4

3.4 Market structure................................................................................................5

3.5 External factors.................................................................................................5

3.6 Solutions...........................................................................................................5

3.7 Conclusion.........................................................................................................5

4. Marketing analysis..................................................................................................6

4.1 SWOT analysis...................................................................................................6

4.2 SWOT analysis conclusion.................................................................................6

4.3 Market size........................................................................................................7

4.4 Competitor analysis...........................................................................................7

5. Communication strategies......................................................................................8

5.1 Introduction.......................................................................................................8

5.2 Internal communication....................................................................................8

5.3 External communication....................................................................................8

5.4 Communication barriers....................................................................................9

6. Business Law........................................................................................................106.1 Employment Law.............................................................................................10

6.2 Employment contracts....................................................................................10

6.3 Marketing Law.................................................................................................11

7. Conclusion.........................................................................................................12

Bibliography................................................................................................................i

List of appendixes.......................................................................................................ii

Appendix 1: Financial situation of Lauge Jensen A/S..............................................ii

Appendix 2: Custom motorbike survey...................................................................iiAppendix 3: Business law exercise.........................................................................iii

Appendix 3: Business law exercise

Table of figures


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Figure 1: Stock size over 3 years................................................................................3Figure 2: Visual representation of total assets...........................................................4

Figure 2:Visual representation of total assets


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Executive summary

Lauge Jensen A/S is a Danish company which builds and sells luxury custommotorcycles. It focuses on satisfying the needs of high class customers. Its entrypoint on the market in a relatively unstable financial period has rendered Lauge

Jensen A/S with an inability to meet market demands.

The purpose of the project is to analyze Lauge Jensens A/S current situation anddevelop a strategy for their current problems based on all the courses studied thissemester.

From an organizational point of view Lauge Jensen should switch to the matrixorganizational model in order to optimize workflow. Furthermore, Lauge Jensenscurrent stock problems can be solved by creating a standardized product line whichwill allow the release of value tied in stock at a higher pace.

From an economical point of view, the company is still in its development stage andstill has a lot of expenses. The companys total assets last year were 12.506.229DKK out of which the profit was 414.935 DKK which is 3.41% of total assets. Theirstocks represent 7.274.414 DKK, which is 58.16% out of the total assets.

The Danish potential market size is mainly formed by men and is around 8.9% ofthe total population. Due to the SWOT analysis we got an internal and external viewof the company, although they face some threats and weaknesses, we agreed thatthey can become a respected international unique brand. Their biggest competitor,Harley Davidson, also started paying attention on custom bikes production andintroduced the HD-1.

Lauge Jensen can expand its external communication channels and stay in contactwith its customers and motto enthusiasts by taking advantage of modern electronicmeans such as blogs and podcasts. In order to improve internal ones, the companyshould consider switching to an interactive communication model. Possiblecommunication barriers that Lauge Jensen might encounter were covered based onexternal or internal channels.


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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, EdvinasBlazevicius

1. Introduction

1.1Background description/Problem area

Lauge Jensen A/S is a Danish company which builds and sells luxury custommotorcycles. It focuses on satisfying the needs of high class customers. Its entrypoint on the market in a relatively unstable financial period has rendered Lauge

Jensen A/S with a slow development.

1.2Purpose

The purpose of the project is to analyze Lauge Jensens A/S current situation and

develop a strategy for their current problems based on all the courses studied thissemester.

1.3 Problem formulation

How can Lauge Jensen survive and expand in Europe?

1.4 Delimitation

We will focus on the European region for the sake of creating a solid foundation forfurther company development.

1.5Methodology

We chose to use the matrix structure model , the supply chain analysis, financialanalysis, micro and macroeconomics, SWOT analysis, market size analysis, internaland external communication theories , communication channels, communicationbarriers, job agency theory, marketing law, labour market and employment law.

We believe that these models and theories are the best tools to give us an overviewof the companys current situation and develop future strategies.

We based our findings and research on data collected from the internet, studybooks and information provided by company members and course lecturers.

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2. Organizational and logistical capabilities

2.1 Company organizational structureLauge Jensen A/S can be best described as a group based structure. Everyonewithin the company has a specialization with clearly defined tasks .Despite these 2factors the high amount of teamwork, decentralized control and knowledge sharingand horizontal communication that takes place within the company offers them adegree of flexibility, which allows them to adapt on the go in case a problem arises.

The companys mix of organic and mechanistic structural organization is perfectlysuited for the companys current number of employees, however in order to expandand meet market demands, Lauge Jensen must make several changes.

Our first recommendation is switching to a Matrix structure.

A matrix organization structure introduces, or at least recognizes, the real lifecomplexity of our business environment. Geography, function, technology, businessunit and technology (among others) are important, so why not recognize this realityin our matrix organizations structure. (Global-Integration, 2008)

Furthermore Dave Mote stated that Companies that employ a product ordivisional structure, by contrast, break the organization down into semiautonomousunits and profit centers based on activities, or "projects," such as products,customers, or geography. Regardless of the project used to segment the company,

each unit operates as a separate business. For example, a company might bebroken down into southern, western, and eastern divisions. Or, it might createseparate divisions for consumer, industrial, and institutional products. Again, withineach product unit are subdivisions. (Mote)Based on the above we agree that this structure is flexible enough to solve the

following organizational problems:

To begin with, as Uffe Lauge Jensen claimed, his passion is to design motorcyclesand would prefer leaving company management to dedicated managers. Weconsider this a main reason for the companys slow reaction to market demands. Sohow does the matrix style solve this problem without demoting Uffe Jensen from his

position as company president? Each project team will have its own manager andadministrative staff. This would lead to solutions tailored for each specific task andproblem .As a result, problems that arise with one project will not slow down otherprojects.

Employee self-motivation is essential for Lauge Jensen. In order to increaseproductivity and quality the company should contract specialist only for the

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duration of a specific project with the option of a full time contract if theirperformance is above expectations. This way the company could obtain highlyskilled and motivated individuals for their future projects. We can conclude that thisstructure fully combines the strengths of a mechanistic structure with those of anorganic one. The creation of project teams would reduce the amount of work eachstaff member has to put in, thus increasing productivity, innovation and quality.

2.2Supply chain managementWe decided to do a supply chain network analysis in order to evaluate Lauge JensenA/S current situation and come up with a solution to their stock problem which has alot of capital tied into it.

Currently Lauge Jensen is not producing their own parts and has to rely on outsidemanufacturers. The main problem is that they have to order bulk whenever theyreceive an order for a custom bike.

Only one part is used and the remaining are placed in stock rendering them uselessuntil a new order could be accomplished using one of them.

Figure 1: Stock size over 3 years

Source: Own (Figures acquired from Appendix 1)

Our recommendation for Lauge Jensen is that they should create a separate seriesof base models with limited customization options in order to reduce stocks at ahigher rate and increase profit.

2.2.1 Logistics

Lauge Jensens current logistics can fit future demands as well. We consider this oneof the companys strongpoints due to its short delivery time, quality customerservices and warranty.

Their straightforward approach on delivery of finished products and retrieval in caseof malfunction via company vans allows them a degree of flexibility in terms ofservice orders. The companys increased output can be covered by simplyincreasing the number of vans thus creating its own delivery fleet. If an increasednumber of vans is not a viable solution, Lauge Jensen can outsource a part of itsdelivery service to a dedicated courier service company, however control overdelivery time and service order is lost this way.

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We can conclude that Lauge Jensens current stock problems can be solved bycreating a standardized product line which will allow the release of value tied instock at a higher pace thus fuelling their main ambition of creating truly uniquemodels. By keeping their current logistical model and adapting it proportionally tothe companys growth in Europe they can meet future demands

3. Economics

3.1 Presentation of the companyThe primary activity consists of the development, production and sale ofmotorcycles and motorcycle systems. Sales take place partly through own offices inLsning, but also through distributors in Norway and in England. The establishmentof a Swedish distributor is expected to take place during 2011. (Lauge Jensen A/S,2011)

3.2 Internal situationLauge Jensen A/Ss main problem is generated by their internal economic situation.During 2008, 2009 and 2010 we can state that the company has done fairly well ifwe take in consideration that it is still in its establishment stage and is still

expensive.

Since we are analyzing the current situation of the company, we will concentrate onmore actual data that we have been provided with in the Lauge Jensen AS Economycase. This year they have sold 40 bikes and their future expectance is to sell 80bikes next year and keep on doubling sales in the following years. In 2010, thecompanys total assets were 12,506,229 DKK from which 414,935 DKK was profitwhich is 3.31% of the total assets. We should also mention that they had 7,274,514DKK in stock which is 58.16 % of the total assets. From our point of view, havingsuch huge assets in the stock section is what generated Lauge Jensen A/Ss current

problem. Their total assets were equal to the total liabilities this tells us that theirdebt ratio is equal to 1, this shows us Lauge Jensens financial health and their levelof risk. Their current assets were 9,341,868 DKK which excides their total short debtof 4,598,729 DKK this meaning that they were able to pay their creditors andsuppliers for 2010. (Based on Appendix 1)

Figure 2:Visual representation of total assets

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Source: Own (Figures acquired from Appendix 1)

3.3 Price elasticityThe minimum cost of a custom bike is estimated to be 250,000 DKK without taxes.We consider that their price is inelastic because if even the price would be higher,people would still buy their bikes since their customers are mostly rich people.Furthermore, Lauge Jensen is the only company that can build custom bikes legallyso there actually is nothing else from where to choose.

Anyway, we must not ignore the fact that customers may still pick for exampleHarley Davidson and pick colors, design of their bike which is enough for some

people.3.4 Market structure

We would classify Lauge Jensen as being to certain extents a monopoly. They havea monopoly on the custom bikes but they do not have a monopoly on motorcyclesin general. It has legal protection as being the only firm that can operate in thecustom bikes area legally. Last but not least, Lauge Jensen acts independently, theydont really take account of the competitors actions since their product is differentand they have their own little market in which they decide everything.

3.5 External factors

The political environment has can be a very decisive factor in the companysactivity. Taking in consideration that one of their main strength is their legalposition of what they do, changes might cause big damages and misbalances. Thegood part is that they are using EURO 3 and aiming at EURO 4 fuel, these types ofengines are charged with lower taxes in Europe.

The global crisis does not affect Lauge Jensen directly, it affects them through theirsuppliers since the company does not produce any of the motorcycle parts bythemselves. The firm mainly operates with pieces made out of steel and as we cansee, the steel industry didnt suffer that much this year.

Global stainless crude steel production in the then months of 2011 reached an alltime high. The Europe and Africa region increased stainless steel production by6.4% (SteelGuru, 2011)

3.6 SolutionsAs we made a brief analysis of the internal and external economic situation, we willcome up with a few suggestions for Lauge Jensen.

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As we mentioned numerous times before, Lauge Jensen has a big problem when itcomes to the stocks. Solving this problem requires time and relationships betweenthe company and the suppliers. They still dont have the bargaining power toinfluence the price and quantity delivered to them. However they can still cut downcosts if they could make long-term collaboration contracts with their suppliers.

Another solution to increase profits would be to concentrate more on sellingmerchandise and build a strong brand in this area also. Jackets, gloves, helmets andother needs for a motorcycle owner is a must have. Furthermore, these items areusually highly expensive and have a low production cost compared to the price atwhat they might sell, this would generate them another little branch of profit thatreally matters to them now.

3.7 ConclusionWe consider that Lauge Jensen is on the right track. They have profits growing eachyear and they have a clear vision of how much they want to sell in the future.Furthermore, having investors means that the big guys see a potential in thecompany at its young stage. As every other company they also have a few majorproblems that cut out their profit and eat a lot of capital, but for now they should

just hold their position and generate more sales and keep growing as they did untilnow.

4. Marketing analysis

4.1 SWOT analysisIn order to have a better view on the internal and external situation of Lauge JensenA/S, we have decided to generate a SWOT analysis.

Strengths

Its main strength is its position as the only authorized custom bike builder on themarket as being 100% TV certified, which allows Lauge Jensen to customize a biketo the smallest detail and offer a high standard of quality. Furthermore, Uffe Lauge

Jensen is highly skilled designer known internationally and his employees aremotorcycle enthusiasts. Lauge Jensen A/S is known in Denmark because of its

uniqueness. Last but not least, the company is one of the only bike manufacturers,which uses a Euro 3 engine.

Opportunities

Due to the strengths stated above, Lauge Jensen A/S has the chance to establish astrong international unique brand that could bring more customers from their target

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group. Their international status should lead to increased sales of merchandise andalso increase brand awareness.

Weaknesses

First of all, the main weakness of the company is its low capital resources as a resultto their capital being tied up in production stocks. The previous is a result of LaugeJensens strong dependency on outside manufacturers. Although highly skilled, thesmall number of employees cannot handle large amount of orders. Another factorthat prevents faster expansion is undeveloped sales channels.

Threats

As we stated before, Lauge Jensen has a high dependency on outsidemanufacturers who can be easily affected by the global economic crisis. An increasein raw materials cost will also lead to an increased custom production, which willhave a direct impact on the companys selling price. In addition, changes in law, forinstance increased registration taxes, could lead to the loss of potential buyers.

4.2 SWOT analysis conclusionLauge Jensen A/S has all the necessary tools to become a respected internationalunique brand. The best way they can take advantage of these is to develop a solidmarketing campaign not only focused on higher classed customers, but also middleclass ones by creating a base bike model. This way they will not sacrifice theiruniqueness for the sake of sales.

4.3 Market sizeIn order to determine the Danish market size and the targeted customers wedecided to analyze the survey that we have been provided with in the Lauge Jensenstatistics case. After analyzing the market we came up with the following estimatedresults:

Around 8.9% of the population in Denmark is interested in custom bikes. Men are alot more interested since the percentage of women is only 0.5% while men are8.4%. During the survey, none of the women that have an annual income of lessthan 500.000 DKK per year responded that they are interested in custom bikes.

Women with an income of 500.000-750.000 DKK per year are the ones that giveweight to potential women customers in the market, this group of income generatesaround 94.8% out of the whole 0.5%. The rest of the 6% goes to the women thathave an income of 750.000-1.000.000 DKK per year and no potential womancustomers have been found in the group that has more than 1.000.000 DKK peryear.

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The 8.4% of men is divided as follows:Mostly men with an income of less than 500.000 DKK per year show most of theinterest in the bikes, they represent 83.4% out of the whole 8.4%. The group withthe income of 500.000-750.000 DKK per year represents 6.5%. The income group of750.000-1.000.000 DKK per year represents 1.4% and the ones that have anincome of more than 1.000.000 DKK per year represent 1.6%. (Based on therelationship between Apendix 2, (Statistikbanken, 2009) and (Wikipedia, 2011))

Our conclusion based on this survey is that most potential customers are men withan income of less than 500.000 DKK per year. As Lauge Jensen sells their bikes atprices starting at 250.000 DKK without taxes it would be wise that they aim at thegroup which has more than 750.000 DKK income per year, this means 3% out of thetotal 8.4% which is a population of around 14.000 people.

4.4 Competitor analysisThe companys main competitor is Harley Davidson. They produce technicallysimilar products and have now introduced on their website the HD-1whichcompetes against Lauge Jensens primary activity. The HD-1 lets the customer todesign his own bike in 1200 ways (2WheelTuesday, 2011). This could become a bigchallenge for Lauge Jensen because a lot of potential customers could be takenaway from the company since Harley Davidson has a high reputation on the market.

The competitor also has other strengths such as better technical skills, a lot ofmarketing assets, more capital and more channels that access to internationaldistribution. However, this does not mean that Lauge Jensen cannot competeagainst them, even with the Harley Davidsons frontal attack in the custom bikemarket they still strongly hold their position.

5. Communication strategies

5.1 IntroductionCommunication is a big part of this company. We decided to do an internal andexternal analysis of their communication methods and come up with improvementswhere needed, based on our findings.

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5.2 Internal communicationBased on their organic organizational structure and our private talks with Uffe

Jensen himself, we can deduct that the company uses a transactionalcommunication style. The transactional style can best be defined by constantexchange of messages between individuals in the company.

Looking back at our findings we can see that the transactional style fits LaugeJensen due to their relative small size and need of constant inter-departmentinformation flow. In order to optimize this, we decided that once the company usesthe matrix organizational structure, they should also adopt an interactivecommunication model for both inner team and company level communications. Buthow can the interactive model best be described? The key concept associated withthis elaboration is that destinations provide feedback on the messages they receivesuch that the information sources can adapt their messages, in real time(Foulger,2004) .As we can see, a level of order is added to Lauge Jensens the organizational

communication process, without sacrificing their need for flexibility, since theinformation flow remains two sided and interactive.

5.3 External communicationNow, looking forward to their external methods and over all strategies we can seethat both are rather limited. Most of their publicity comes from word of mouth andfrom themed fairs the company attends. The company does have its own websitewhich indicates its intent to expand brand recognition.

Lauge Jensens target audience is, as their mission states, the chooseyinternational buyer with a passion for motorcycles. Its worth mentioning that the

international buyer must also have a large bank account as the price of onemotorcycle without taxes starts from 250.000 DKK.

One of Lauge Jensens problems is that the cruiser motorcycle lifestyle is not asdeveloped in Europe as it is in the United States. Although they cater to femalesand males of all ages, a great portion of Europes richest are past the age riding abike into the sunset. The bad boy/girl image might be enough to influence a buy forsome as masculinity and individualism are seen as good traits, but it will not beenough for the rest where uncertainty and collective points of view regardingmotorbikes and the perceived rebel status they give the owner comes into play. Anew image must be created and associated with the brand in order to cater to the

undecided or misinformed. An image of leisure and control. Partnerships can becreated with luxury lifestyle publications and showrooms in order to propagate thatimage via more familiar and established non electronic written channels and face toface presentations.

However, not all rich Europeans are old or old-fashioned. How could Lauge Jensencapitalize on the middle age, upper middle class and upper class? As with the older

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class traditional written press can be used to catch ones attention, but this may notapply for some of the younger generations.

In order to keep communication at a semi-professional level, Lauge Jensen can usea blend of oral and written electronic channels. A company blog can be established

for weekly informal updates on the companys work. Couple this with a monthlypodcast covering both Lauge Jensens work and news from the motorbike world andyou get a user friendly, public oriented news service. However, the ultimate goal ofthe above is to increase brand recognition and induce sales, so credible writing isthe key. A strong, direct first sentence or question will capture the readers orlisteners attention and will make him place more interest on the matter. Objectivismand rationalism are recommended, where emotionalism or flattery are seen ascheap ploys and should be avoided at all times. We also advise Lauge Jensen toavoid e-mail or voice mail campaigns altogether, since these can be consideredintrusive by some not to mention unprofessional for their business type.

5.4 Communication barriersBefore we draw a final conclusion regarding Lauge Jensens communicationsituation, we will see what possible barriers they might encounter, that wouldprevent proper communication, both internal and external.

There are two factors that might influence internal communication: there is thepolitical factor in which a message does not reach its destination due to innercompany differences towards the sender. Then there is the technological factorwhich consists of an entire series of possible technical failures such as internetserver malfunction or telephone service being down.

Looking for external barriers we again mention the technological one, where thesame concept applies, technical failure and the political one, where the views ofperson managing the communication channel of choice might prevent the properpropagation of the message, if not at all. Closely tied to the political factor is theeconomical one, which just as now might prevent Lauge Jensen from distributingtheir message across their desired channels in a substantial way. Last but not least,the cultural factor comes into play. Lauge Jensen must tailor their message to takeinto consideration cultural diversity in order to avoid misinterpretation. After all, wehear what we want to hear.

To conclude, we believe that in order to cope with the increased information flowonce Lauge Jensen switches to a more organized organizational structure, thecompany must adopt an interactive communication model for their internalcommunication. For their external communication, they must make use of alreadyexisting written channels such as lifestyle press and develop new electroniccommunication channels such as a company blog and podcast, in order to stay intouch with both their customers and potential ones. The most important is that they

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must take into consideration what barriers they might face and tailor their messagein such a way, that these can be avoided or have a minimal impact on it.

6. Business Law

6.1 Employment Law

Lauge Jensen A/S, as all the companies in Denmark, has to obey the laws regardingLabour Market and Employment Law. They consist of 10 employees, such aslabourers and salaried employees, thus the company has to follow the rules of TheSalaried Employees Act, those employees who deal with work management are saidto have superior position compared to their working environment, the ones whodeal with paperwork, processing orders or office oriented work.

The act of letters of employment entails that certain work conditions have to bementioned in the agreement, such as working hours and employees authorities. Ifsomeone from the company acts outside their authority, meaning that makesdecisions in the name of Lauge Jensen A/S, the contract of the employee can be

terminated without giving a notice, for instance as we were given a situation, since1st July 2008, Uffe Lauge Jensen as an employer/principal gave authority to Lise

Jensen to act as an employee/agent on behalf of the principal in his company withcertain limits [section 10,2]. Lauge Jensen gave her an actual authority to work asan office assistant at Lauge Jensen A/S. We can predict that her job includesobligations such as executing orders, managing documents and expenses, but notto decide herself what to order or manage. However, Lise Jensen had an ostensibleauthority which created expectations in Colors and Stripes A/S that meant she coulddecide what goods to order.

As a several year partner of Lauge Jensen A/S, Color and Stripes A/S salerepresentative person noticed that during his unannounced visit on 13th May 2011there was no member of management of the company so he showed to Lisesamples of the new paint, despite the fact that he knew job agencies of Lise Jensen.We can state that he accepted an order for 100 liters paint acting in bad faith. Colorand Stripes A/S took a risk of trusting Lise and her authority to order goods. Thatswhy Lauge Jensen A/S is not bound to accept the order and pay for it to Color andStripes A/S. Lise Jensens actions could be stated as a gross-nonperformance thats

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why Uffe Lauge Jensen as an employer has the right to terminate her contractwithout noticing her. Uffe Lauge Jensen can also demand compensation which wascaused by Lisas actions.

6.2 Employment contracts

The contracts that were signed by Uffe Lauge Jensen and his employees had to bemade in oral or written forms, but in a way if an employee considered the job part ofhis or her education, as Ninna Wicki Stryhn (Stryhn, 2011), who was a formeremployee had a study on consumer behavior in a time period of 8 months, then theagreement has to be definitely in written form with its validity . There is a ruleregarding non-competition clauses that can protect the employer, so Uffe Lauge

Jensen can prevent his employees from being employed in similar types ofcompanies or from establishing a new company in the same market. Furthermore,the companys target group is formed of people with higher incomes, it couldhappen that a rich client would like to enter the same market offering preferable

jobs to Lauge Jensen A/S employees and also employing them. In this way LaugeJensen can have an agreement with their clients in written form. If its valid morethan 12 months, the employee can ask for compensation.

6.3 Marketing LawAs Lauge Jensens aim is to get known, their future plan is also to organizemarketing campaigns, attending on fairs or publish advertisements. In a way if thecompany wants to promote their high class motorcycles they have to follow therules of The Danish Marketing Practices Act, meaning that the advertisements

cannot contain misleading information regarding the motorcycles and merchandisesthey sell, the information they share about used raw materials or fuel emissions hasto be verifiable. Lauge Jensen should also pay attention to the prices that arepublished in advertisements that these must correspond precisely with the price ofproducts.

In addition, the company should make short video commercials in order to show thequality and the pleasure that their product can give to customers, but in the sametime they have to avoid the discrimination, violence and also the naked peoplepicture from the adverts, although motorcycling is said to be an aggressive and wildsport.

The 8th section of Rules and codes about good marketing practices protects thechildren and young people and also their parents, meaning that in the advertsLauge Jensen A/S should not use facts that their products require a minimum age, isnot recommended to say if the motorcycles give a physical or even social benefitscompared to their competitors or others product. Another important point isrelated to the gender of the people that should not be mentioned in the

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advertisement, as both males and females are potential customers for Lauge JensenA/S.

7. Conclusion

Overall, we can conclude that Lauge Jensen A/S is a company that is in itsdevelopment stage. Their internal organizational structure is not fit for theEuropean market demands and in order to solve the problem we suggest switchingto a matrix structure.

To improve their external communication with their potential customers they mustdevelop new electronic communication channels as well as using the alreadyexisting ones.

To have a positive image they must adder to the Danish marketing practices actsuch avoiding misleading information, discrimination, nudity and violence. To keepa stable internal situation from the legal point of view they must adder to theDanish employment standards.

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From the marketing point of view, Lauge Jensen must take advantage of theirinternal strengths such as being the only certified custom bike manufacturer, beingwell known in Denmark and having highly skilled workers, in order to boost theirmarket position. After analyzing the market size, we can conclude that theirpotential customers are upper class men which they should target.

Their economic situation has to suffer because of the tied up capital in stock. Inorder to solve this problem we recommend Lauge Jensen A/S to create long-termpartnership contracts with their suppliers this could lead to more flexibility.

All in all by following our recommendations we believe that Lauge Jensen A/S willimprove their European status which will guarantee their survival and furtherexpansion.

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Bibliography(Global-Integration, 2008)


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2WheelTuesday, 2011. 2 Wheel Tuesday. [Online]Available at: http://2wheeltuesday.com/2011/01/harel-davidson-to-launch-custom-bike-builder-website/[Accessed 06 12 2011].


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Foulger, D., 2004. Moddels of the communication process. [Online]Available at: http://davis.foulger.info/research/unifiedModelOfCommunication.htm[Accessed 06 12 2011].


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Global-Integration, 2008. Global integration. [Online]Available at: http://www.global-integration.com/[Accessed 08 12 2011].


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Lauge Jensen A/S, 2011. Financial Statements of Lauge Jensen A.S, Vejle: LaugeJensen A/S.


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Mote, D., n.d. Rreference for business. [Online]Available at: http://www.referenceforbusiness.com/encyclopedia/Man-Mix/Matrix-Management-and-Structure.html[Accessed 08 12 2011].


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Statistikbanken, 2009. Statistikbanken. [Online]Available at: http://www.statistikbanken.dk/statbank5a/default.asp?w=1440[Accessed 07 12 2011].


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SteelGuru, 2011. Steel Guru. [Online]Available at:http://www.steelguru.com/stainless_steel_news/Global_stainless_steel_in_2011_seen

_at_all_time_high_of_35_million_tonnes/232571.html[Accessed 08 12 2011].


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Stryhn, N. W., 2011. LinkedIn. [Online]Available at: http://dk.linkedin.com/pub/ninna-wicki-stryhn/1b/760/523[Accessed 06 12 2011].


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Wikipedia, 2011. Wikipedia. [Online]Available at: http://en.wikipedia.org/wiki/Denmark[Accessed 08 12 2011].


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List of appendixes

Appendix 1: Financial situation of Lauge Jensen A/S


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Appendix 2: Custom motorbike surveyDownload from the link: http://www.mediafire.com/?841wd3vsd1y1dql

Appendix 3: Business law exercise

Documents

Group 7, Project A