Lauge Jensen in Europe

How can Lauge Jensen survive and expand in Europe?

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

VIA University College

9 December 2011

Lauge Jensen in Europe

How can Lauge Jensen survive and expand in Europe?

The AP Degree in Marketing Management

Authors: Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius

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 1.2 Background description/Problem area...........................................................1 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

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........................................................................................................10 6.1 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...................................................................ii Appendix 3: Business law exercise.........................................................................iii Appendix 3: Business law exercise

Table of figures

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

Figure 2:Visual representation of total assets

Executive summary

Lauge Jensen A/S is a Danish company which builds and sells luxury custom motorcycles. It focuses on satisfying the needs of high class customers. Its entry point 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 and develop a strategy for their current problems based on all the courses studied this semester. From an organizational point of view Lauge Jensen should switch to the matrix organizational model in order to optimize workflow. Furthermore, Lauge Jensens current stock problems can be solved by creating a standardized product line which will 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 and still has a lot of expenses. The companys total assets last year were 12.506.229 DKK out of which the profit was 414.935 DKK which is 3.41% of total assets. Their stocks 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% of the total population. Due to the SWOT analysis we got an internal and external view of the company, although they face some threats and weaknesses, we agreed that they can become a respected international unique brand. Their biggest competitor, Harley Davidson, also started paying attention on custom bikes production and introduced the HD-1. Lauge Jensen can expand its external communication channels and stay in contact with its customers and motto enthusiasts by taking advantage of modern electronic means such as blogs and podcasts. In order to improve internal ones, the company should consider switching to an interactive communication model. Possible communication barriers that Lauge Jensen might encounter were covered based on external or internal channels.

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius

1. Introduction
1.1Background description/Problem area Lauge Jensen A/S is a Danish company which builds and sells luxury custom motorcycles. It focuses on satisfying the needs of high class customers. Its entry point 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 this semester.

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 for further company development.

1.5Methodology We chose to use the matrix structure model , the supply chain analysis, financial analysis, micro and macroeconomics, SWOT analysis, market size analysis, internal and external communication theories , communication channels, communication barriers, 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 overview of the companys current situation and develop future strategies. We based our findings and research on data collected from the internet, study books and information provided by company members and course lecturers.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius

2. Organizational and logistical capabilities

2.1 Company organizational structure Lauge Jensen A/S can be best described as a group based structure. Everyone within the company has a specialization with clearly defined tasks .Despite these 2 factors the high amount of teamwork, decentralized control and knowledge sharing and horizontal communication that takes place within the company offers them a degree 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 perfectly suited for the companys current number of employees, however in order to expand and 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 life complexity of our business environment. Geography, function, technology, business unit and technology (among others) are important, so why not recognize this reality in our matrix organizations structure. (Global-Integration, 2008) Furthermore Dave Mote stated that Companies that employ a product or divisional structure, by contrast, break the organization down into semiautonomous units 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 be broken down into southern, western, and eastern divisions. Or, it might create separate divisions for consumer, industrial, and institutional products. Again, within each 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 motorcycles and would prefer leaving company management to dedicated managers. We consider this a main reason for the companys slow reaction to market demands. So how 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 and administrative staff. This would lead to solutions tailored for each specific task and problem .As a result, problems that arise with one project will not slow down other projects. Employee self-motivation is essential for Lauge Jensen. In order to increase productivity and quality the company should contract specialist only for the 9 December 1

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius duration of a specific project with the option of a full time contract if their performance is above expectations. This way the company could obtain highly skilled and motivated individuals for their future projects. We can conclude that this structure fully combines the strengths of a mechanistic structure with those of an organic one. The creation of project teams would reduce the amount of work each staff member has to put in, thus increasing productivity, innovation and quality.

2.2Supply chain management We decided to do a supply chain network analysis in order to evaluate Lauge Jensen A/S current situation and come up with a solution to their stock problem which has a lot of capital tied into it. Currently Lauge Jensen is not producing their own parts and has to rely on outside manufacturers. The main problem is that they have to order bulk whenever they receive an order for a custom bike. Only one part is used and the remaining are placed in stock rendering them useless until 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 series of base models with limited customization options in order to reduce stocks at a higher rate and increase profit. 2.2.1 Logistics Lauge Jensens current logistics can fit future demands as well. We consider this one of the companys strongpoints due to its short delivery time, quality customer services and warranty. Their straightforward approach on delivery of finished products and retrieval in case of malfunction via company vans allows them a degree of flexibility in terms of service orders. The companys increased output can be covered by simply increasing the number of vans thus creating its own delivery fleet. If an increased number of vans is not a viable solution, Lauge Jensen can outsource a part of its delivery service to a dedicated courier service company, however control over delivery time and service order is lost this way.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius We can conclude that Lauge Jensens current stock problems can be solved by creating a standardized product line which will allow the release of value tied in stock at a higher pace thus fuelling their main ambition of creating truly unique models. By keeping their current logistical model and adapting it proportionally to the companys growth in Europe they can meet future demands

3. Economics
3.1 Presentation of the company The primary activity consists of the development, production and sale of motorcycles and motorcycle systems. Sales take place partly through own offices in Lsning, but also through distributors in Norway and in England. The establishment of a Swedish distributor is expected to take place during 2011. (Lauge Jensen A/S, 2011) 3.2 Internal situation Lauge 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 if we 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 on more actual data that we have been provided with in the Lauge Jensen AS Economy case. This year they have sold 40 bikes and their future expectance is to sell 80 bikes next year and keep on doubling sales in the following years. In 2010, the companys total assets were 12,506,229 DKK from which 414,935 DKK was profit which is 3.31% of the total assets. We should also mention that they had 7,274,514 DKK in stock which is 58.16 % of the total assets. From our point of view, having such 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 their debt ratio is equal to 1, this shows us Lauge Jensens financial health and their level of risk. Their current assets were 9,341,868 DKK which excides their total short debt of 4,598,729 DKK this meaning that they were able to pay their creditors and suppliers for 2010. (Based on Appendix 1)
Figure 2:Visual representation of total assets

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius

Source: Own (Figures acquired from Appendix 1)

3.3 Price elasticity The 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 legally so there actually is nothing else from where to choose. Anyway, we must not ignore the fact that customers may still pick for example Harley 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 have a monopoly on the custom bikes but they do not have a monopoly on motorcycles in general. It has legal protection as being the only firm that can operate in the custom bikes area legally. Last but not least, Lauge Jensen acts independently, they dont really take account of the competitors actions since their product is different and 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 companys activity. Taking in consideration that one of their main strength is their legal position of what they do, changes might cause big damages and misbalances. The good part is that they are using EURO 3 and aiming at EURO 4 fuel, these types of engines are charged with lower taxes in Europe. The global crisis does not affect Lauge Jensen directly, it affects them through their suppliers since the company does not produce any of the motorcycle parts by themselves. The firm mainly operates with pieces made out of steel and as we can see, the steel industry didnt suffer that much this year. Global stainless crude steel production in the then months of 2011 reached an all time high. The Europe and Africa region increased stainless steel production by 6.4% (SteelGuru, 2011) 3.6 Solutions As we made a brief analysis of the internal and external economic situation, we will come up with a few suggestions for Lauge Jensen.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius As we mentioned numerous times before, Lauge Jensen has a big problem when it comes to the stocks. Solving this problem requires time and relationships between the company and the suppliers. They still dont have the bargaining power to influence the price and quantity delivered to them. However they can still cut down costs if they could make long-term collaboration contracts with their suppliers. Another solution to increase profits would be to concentrate more on selling merchandise and build a strong brand in this area also. Jackets, gloves, helmets and other needs for a motorcycle owner is a must have. Furthermore, these items are usually highly expensive and have a low production cost compared to the price at what they might sell, this would generate them another little branch of profit that really matters to them now. 3.7 Conclusion We consider that Lauge Jensen is on the right track. They have profits growing each year 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 the company at its young stage. As every other company they also have a few major problems 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 until now.

4. Marketing analysis
4.1 SWOT analysis In order to have a better view on the internal and external situation of Lauge Jensen A/S, we have decided to generate a SWOT analysis. Strengths Its main strength is its position as the only authorized custom bike builder on the market as being 100% TV certified, which allows Lauge Jensen to customize a bike to the smallest detail and offer a high standard of quality. Furthermore, Uffe Lauge Jensen is highly skilled designer known internationally and his employees are motorcycle 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 a strong international unique brand that could bring more customers from their target

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius group. Their international status should lead to increased sales of merchandise and also increase brand awareness. Weaknesses First of all, the main weakness of the company is its low capital resources as a result to their capital being tied up in production stocks. The previous is a result of Lauge Jensens strong dependency on outside manufacturers. Although highly skilled, the small number of employees cannot handle large amount of orders. Another factor that prevents faster expansion is undeveloped sales channels. Threats As we stated before, Lauge Jensen has a high dependency on outside manufacturers who can be easily affected by the global economic crisis. An increase in raw materials cost will also lead to an increased custom production, which will have a direct impact on the companys selling price. In addition, changes in law, for instance increased registration taxes, could lead to the loss of potential buyers. 4.2 SWOT analysis conclusion Lauge Jensen A/S has all the necessary tools to become a respected international unique brand. The best way they can take advantage of these is to develop a solid marketing campaign not only focused on higher classed customers, but also middle class ones by creating a base bike model. This way they will not sacrifice their uniqueness for the sake of sales. 4.3 Market size In order to determine the Danish market size and the targeted customers we decided to analyze the survey that we have been provided with in the Lauge Jensen statistics case. After analyzing the market we came up with the following estimated results: Around 8.9% of the population in Denmark is interested in custom bikes. Men are a lot more interested since the percentage of women is only 0.5% while men are 8.4%. During the survey, none of the women that have an annual income of less than 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 give weight to potential women customers in the market, this group of income generates around 94.8% out of the whole 0.5%. The rest of the 6% goes to the women that have an income of 750.000-1.000.000 DKK per year and no potential woman customers have been found in the group that has more than 1.000.000 DKK per year.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius 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 the interest in the bikes, they represent 83.4% out of the whole 8.4%. The group with the income of 500.000-750.000 DKK per year represents 6.5%. The income group of 750.000-1.000.000 DKK per year represents 1.4% and the ones that have an income of more than 1.000.000 DKK per year represent 1.6%. (Based on the relationship between Apendix 2, (Statistikbanken, 2009) and (Wikipedia, 2011)) Our conclusion based on this survey is that most potential customers are men with an income of less than 500.000 DKK per year. As Lauge Jensen sells their bikes at prices starting at 250.000 DKK without taxes it would be wise that they aim at the group which has more than 750.000 DKK income per year, this means 3% out of the total 8.4% which is a population of around 14.000 people. 4.4 Competitor analysis The companys main competitor is Harley Davidson. They produce technically similar products and have now introduced on their website the HD-1 which competes against Lauge Jensens primary activity. The HD-1 lets the customer to design his own bike in 1200 ways (2WheelTuesday, 2011). This could become a big challenge for Lauge Jensen because a lot of potential customers could be taken away 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 of marketing assets, more capital and more channels that access to international distribution. However, this does not mean that Lauge Jensen cannot compete against them, even with the Harley Davidsons frontal attack in the custom bike market they still strongly hold their position.

5. Communication strategies
5.1 Introduction Communication is a big part of this company. We decided to do an internal and external analysis of their communication methods and come up with improvements where needed, based on our findings.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius 5.2 Internal communication Based on their organic organizational structure and our private talks with Uffe Jensen himself, we can deduct that the company uses a transactional communication style. The transactional style can best be defined by constant exchange of messages between individuals in the company. Looking back at our findings we can see that the transactional style fits Lauge Jensen due to their relative small size and need of constant inter-department information flow. In order to optimize this, we decided that once the company uses the matrix organizational structure, they should also adopt an interactive communication model for both inner team and company level communications. But how can the interactive model best be described? The key concept associated with this elaboration is that destinations provide feedback on the messages they receive such 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 the information flow remains two sided and interactive. 5.3 External communication Now, looking forward to their external methods and over all strategies we can see that both are rather limited. Most of their publicity comes from word of mouth and from themed fairs the company attends. The company does have its own website which indicates its intent to expand brand recognition. Lauge Jensens target audience is, as their mission states, the choosey international buyer with a passion for motorcycles. Its worth mentioning that the international buyer must also have a large bank account as the price of one motorcycle without taxes starts from 250.000 DKK. One of Lauge Jensens problems is that the cruiser motorcycle lifestyle is not as developed in Europe as it is in the United States. Although they cater to females and males of all ages, a great portion of Europes richest are past the age riding a bike into the sunset. The bad boy/girl image might be enough to influence a buy for some as masculinity and individualism are seen as good traits, but it will not be enough for the rest where uncertainty and collective points of view regarding motorbikes and the perceived rebel status they give the owner comes into play. A new 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 be created with luxury lifestyle publications and showrooms in order to propagate that image via more familiar and established non electronic written channels and face to face presentations. However, not all rich Europeans are old or old-fashioned. How could Lauge Jensen capitalize on the middle age, upper middle class and upper class? As with the older 9 December 1

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius class traditional written press can be used to catch ones attention, but this may not apply for some of the younger generations. In order to keep communication at a semi-professional level, Lauge Jensen can use a 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 monthly podcast covering both Lauge Jensens work and news from the motorbike world and you get a user friendly, public oriented news service. However, the ultimate goal of the above is to increase brand recognition and induce sales, so credible writing is the key. A strong, direct first sentence or question will capture the readers or listeners attention and will make him place more interest on the matter. Objectivism and rationalism are recommended, where emotionalism or flattery are seen as cheap ploys and should be avoided at all times. We also advise Lauge Jensen to avoid e-mail or voice mail campaigns altogether, since these can be considered intrusive by some not to mention unprofessional for their business type. 5.4 Communication barriers Before we draw a final conclusion regarding Lauge Jensens communication situation, we will see what possible barriers they might encounter, that would prevent proper communication, both internal and external. There are two factors that might influence internal communication: there is the political factor in which a message does not reach its destination due to inner company differences towards the sender. Then there is the technological factor which consists of an entire series of possible technical failures such as internet server malfunction or telephone service being down. Looking for external barriers we again mention the technological one, where the same concept applies, technical failure and the political one, where the views of person managing the communication channel of choice might prevent the proper propagation of the message, if not at all. Closely tied to the political factor is the economical one, which just as now might prevent Lauge Jensen from distributing their 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 take into consideration cultural diversity in order to avoid misinterpretation. After all, we hear what we want to hear. To conclude, we believe that in order to cope with the increased information flow once Lauge Jensen switches to a more organized organizational structure, the company must adopt an interactive communication model for their internal communication. For their external communication, they must make use of already existing written channels such as lifestyle press and develop new electronic communication channels such as a company blog and podcast, in order to stay in touch with both their customers and potential ones. The most important is that they 9 December 2

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius must take into consideration what barriers they might face and tailor their message in 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 regarding Labour Market and Employment Law. They consist of 10 employees, such as labourers and salaried employees, thus the company has to follow the rules of The Salaried Employees Act, those employees who deal with work management are said to have superior position compared to their working environment, the ones who deal with paperwork, processing orders or office oriented work. The act of letters of employment entails that certain work conditions have to be mentioned in the agreement, such as working hours and employees authorities. If someone from the company acts outside their authority, meaning that makes decisions 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, since 1st 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 with certain limits [section 10,2]. Lauge Jensen gave her an actual authority to work as an office assistant at Lauge Jensen A/S. We can predict that her job includes obligations such as executing orders, managing documents and expenses, but not to decide herself what to order or manage. However, Lise Jensen had an ostensible authority which created expectations in Colors and Stripes A/S that meant she could decide what goods to order. As a several year partner of Lauge Jensen A/S, Color and Stripes A/S sale representative person noticed that during his unannounced visit on 13th May 2011 there was no member of management of the company so he showed to Lise samples 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. Color and Stripes A/S took a risk of trusting Lise and her authority to order goods. Thats why Lauge Jensen A/S is not bound to accept the order and pay for it to Color and Stripes A/S. Lise Jensens actions could be stated as a gross-nonperformance thats 9 December 2

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius why Uffe Lauge Jensen as an employer has the right to terminate her contract without noticing her. Uffe Lauge Jensen can also demand compensation which was caused by Lisas actions. 6.2 Employment contracts The contracts that were signed by Uffe Lauge Jensen and his employees had to be made in oral or written forms, but in a way if an employee considered the job part of his or her education, as Ninna Wicki Stryhn (Stryhn, 2011), who was a former employee had a study on consumer behavior in a time period of 8 months, then the agreement has to be definitely in written form with its validity . There is a rule regarding non-competition clauses that can protect the employer, so Uffe Lauge Jensen can prevent his employees from being employed in similar types of companies or from establishing a new company in the same market. Furthermore, the companys target group is formed of people with higher incomes, it could happen 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 Lauge Jensen can have an agreement with their clients in written form. If its valid more than 12 months, the employee can ask for compensation.

6.3 Marketing Law As Lauge Jensens aim is to get known, their future plan is also to organize marketing campaigns, attending on fairs or publish advertisements. In a way if the company wants to promote their high class motorcycles they have to follow the rules of The Danish Marketing Practices Act, meaning that the advertisements cannot contain misleading information regarding the motorcycles and merchandises they sell, the information they share about used raw materials or fuel emissions has to be verifiable. Lauge Jensen should also pay attention to the prices that are published in advertisements that these must correspond precisely with the price of products. In addition, the company should make short video commercials in order to show the quality and the pleasure that their product can give to customers, but in the same time they have to avoid the discrimination, violence and also the naked people picture from the adverts, although motorcycling is said to be an aggressive and wild sport. The 8th section of Rules and codes about good marketing practices protects the children and young people and also their parents, meaning that in the adverts Lauge Jensen A/S should not use facts that their products require a minimum age, is not recommended to say if the motorcycles give a physical or even social benefits compared to their competitors or others product. Another important point is related to the gender of the people that should not be mentioned in the 9 December 2

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius advertisement, as both males and females are potential customers for Lauge Jensen A/S.

7. Conclusion
Overall, we can conclude that Lauge Jensen A/S is a company that is in its development stage. Their internal organizational structure is not fit for the European market demands and in order to solve the problem we suggest switching to a matrix structure. To improve their external communication with their potential customers they must develop new electronic communication channels as well as using the already existing ones. To have a positive image they must adder to the Danish marketing practices act such avoiding misleading information, discrimination, nudity and violence. To keep a stable internal situation from the legal point of view they must adder to the Danish employment standards.

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Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius From the marketing point of view, Lauge Jensen must take advantage of their internal strengths such as being the only certified custom bike manufacturer, being well known in Denmark and having highly skilled workers, in order to boost their market position. After analyzing the market size, we can conclude that their potential customers are upper class men which they should target. Their economic situation has to suffer because of the tied up capital in stock. In order to solve this problem we recommend Lauge Jensen A/S to create long-term partnership contracts with their suppliers this could lead to more flexibility. All in all by following our recommendations we believe that Lauge Jensen A/S will improve their European status which will guarantee their survival and further expansion.

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

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].

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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List of appendixes
Appendix 1: Financial situation of Lauge Jensen A/S

Povilas Andriukaitis, Sofalvi Elod, Dragos Cojocaru, Ion Paul Angelescu, Edvinas Blazevicius Appendix 2: Custom motorbike survey Download from the link: http://www.mediafire.com/?841wd3vsd1y1dql

Appendix 3: Business law exercise

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