Developing the Injection Mold Business: Rosenlew Tools

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In 1987, Rosenlew Tools marketed, designed, and manufactured sophisticated injection molds for the Scandinavian television and automobile industries. It was one of W. Rosenlew’s profit centers. The company employed 120 people and had a turnover of about (EUR 4 million). Its major competitors were in Finland, Italy, and Germany.

The main thrust of the strategy was to transform Rosenlew Tools into a unit that could operate profitably, first and foremost as the main supplier of large injection molds for the Nordic TV and automobile industry.

In order to meet the overall goals set for the profit center, strategic objectives had been established for profitability, growth, internationalization, product policy, investments, productivity, cost structure, organization, corporate culture, and competitive advantage.

Strategic objectives were compared with the corresponding performance of competitors. Throughput times, productivity and corporate cultures were compared individually, and conclusions drawn about the reasons for differences in performance.

In order to achieve the overall goal, the company had to win a strong position in the market and improve profitability considerably. The company had been making heavy losses for many years, in spite of significant growth.

The goal was to achieve a return on equity of 14 percent within three to four years.