List with cities with over fourteen thousand inhabitants, number of inhabitants, number and name of shops with lingerie related assortment, and the competitive saturation level.

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Appendix 1. List with cities with over fourteen thousand inhabitants, number of inhabitants, number and name of shops with lingerie related assortment, and the competitive saturation level.

City Populatio

n Competitors Total Comp.Sat.

Aabenraa 16,225 Fleur, H&M, Femilet 3 5,408 Aalborg 121,100 2×Fleur, 3×H&M, Magasin 6 20,183 Ǻrhus 222,559 4×Fleur, 3×H&M, 2×Change, 10 22,256

Magasin

Birkerød 18,998 0 18,998

Esjberg 72,613 Fleur, 2×H&M, Femilet 4 18,153

Fredericia 36,819 Fleur, 1 36,819

Frederikssund 14,463 0 14,463 Frederikshavn 24,309 Fleur, HKM 2 12,155

Grenaa 14,308 0 14,308

Greve 41,506 H&M 1 41,506

Haderslev 20,982 Fleur, Change, 2 10,491 Helsingør 34,906 Fleur, H&M, Femilet 3 11,635 Herning 29,871 Fleur, H&M, 2 14,936 Hillerød 28,143 2×Fleur, H&M 3 9,381 Hjørring 24,724 Fleur, H&M, 2 12,362 Holbæk 24,081 Fleur, H&M 2 12,041 Holstebro 31,805 2×Fleur, H&M, Femilet 4 7,951 Horsens 49,457 Fleur, H&M 2 24,729 Hørsholm 23,735 Fleur, H&M 2 11,868

Ikast 14,517 0 14,517

Ishøj Strand 19,424 H&M 1 19,424

Kalundborg 15,740 0 15,740

Kolding 54,526 2×Fleur, 2×H&M, 7 7,789 Magasin, Change, HKM

Korsør 14,894 0 14,894

Køge 33,487 Fleur, Change, 2 16,744

Lillerød 15,382 0 15,382

Nakskov 14,351 Fleur, 1 14,351

Nyborg 15,797 0 15,797

Nykobing 16,706 Fleur, H&M 2 8,353 Næstved 40,147 2×Fleur, H&M, Femilet 4 10,037 Odense 145,374 4×Fleur, 2×H&M, Magasin,

Change, 11 13,216

Femilet, 2×HKM

Randers 62,252 2×Fleur, H&M, HKM 4 15,563

Ringsted 18,507 Change, 1 18,507

Roskilde 43,753 Fleur, H&M, Change, Femilet 4 10,938

Rønne 14,006 Fleur, 1 14,006

Silkeborg 38,111 2×Fleur, H&M 3 12,704

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Skive 20,723 H&M 1 20,723 Slagelse 31,674 Fleur, H&M 2 15,837

Sølrod 14,530 0 14,530

Sonderborg 26,865 Fleur, H&M, Change, Femilet 4 6,716 Svendborg 27,512 Fleur, H&M, HKM 3 9,171 Vejle 49,782 Fleur, H&M, Femilet, 5 9,956

Change, HKM

Viborg 33,203 Fleur, H&M, HKM 3 11,067

City Population Competition Total Comp. Sat.

Copenhagen City 501,285 4×Fleur, 3×H&M, 10 50,129

2×Change,

Magasin Copenhagen

County

Albertslund 28,839 0 28,839

Ballerup 46,443 Fleur, H&M, 2 23,222

Brøndby 34,676 0 34,676

Frederiksberg 91,435 Fleur, H&M, 2 45,718

Gentofte 68,314 0 68,314

Gladsaxe 62,006 0 62,006

Glostrup 20,586 H&M, 1 20,586

Herlev 27,318 Fleur 1 27,318

Hvidøvre 49,829 H&M, 1 49,829

Høje-Taastrup 45,754 Fleur, H&M,

Magasin 3 15,251

Ishoj 21,023 0 21,251

Lyngby-Taarbæk 51,344 Fleur, H&M,

Magasin 3 17,115

Rodøvre 36,619 H&M, Magasin, 2 18,310

Sollerød 31,494 0 31,494

Tarnby 39,466 0 39,466

Vaerløse 18,483 0 18,483

Appendix 2. The competitive saturation level after the entrance of a Hunkemöller shop.

City Population Competitors

Total shops + 1 HKM

Comp.

Sat.After Aalborg 121,100 2×Fleur, 3×H&M, Magasin, 8 15,138

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HKM

Ǻrhus 222,559 4×Fleur, 3×H&M, 2×Change, 11 20,233

Magasin

Birkerod 18,998 1 18,998

Frederikshavn 24,309 Fleur, HKM 3 8,103 Frederikssund 14,463 1 14,463

Grenaa 14,308 1 14,308

Greve 41,506 H&M 2 20,753

Herning 29,871 Fleur, H&M, 3 9,957 Hjørring 24,724 Fleur, H&M, 3 8,241 Holbæk 24,081 Fleur, H&M 3 8,027 Horsens 49,457 Fleur, H&M 3 16,486 Hørsholm 23,735 Fleur, H&M 3 7,912

Ikast 14,517 1 14,517

Ishøj Strand 19,424 H&M 2 9,712 Kalundborg 15,740 1 15,740

Korsør 14,894 1 14,894

Køge 33,487 Fleur, Change, 3 11,162

Lillerød 15,382 1 15,382

Nakskov 14,351 Fleur, 2 7,176

Nyborg 15,797 1 15,797

Randers 62,252 2×Fleur, H&M, HKM 5 12,450

Ringsted 18,507 Change, 2 9,254

Rønne 14,006 Fleur, 2 7,003

Silkeborg 38,111 2×Fleur, H&M 4 9,528

Skive 20,723 H&M 2 10,362

Slagelse 31,674 Fleur, H&M 3 10,558

Sølrod 14,530 2 14,530

City Population Competition

Total Shops + 1 HKM

Comp.

Sat.

Copenhagen City 501,285 4×Fleur, 3×H&M, 11 45,571 2×Change, Magasin

Copenhagen

County

Brøndby 34,676 1 34,676

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Gentofte 68,314 1 68,314

Gladsaxe 62,006 1 62,006

Glostrup 20,586 H&M, 2 10,923

Herlev 27,318 Fleur 2 13,659

Hvidøvre 49,829 H&M, 2 24,915 Hoje-Taastrup 45,754 Fleur, H&M, Magasin 4 11,439

Ishøj 21,023 1 21,023

Lyngby-Taarbæk 51,344 Fleur, H&M, 4 12,836 Magasin

Rodøvre 36,619 H&M, Magasin, 3 12,206

Sollerød 31,494 1 31,494

Tarnby 39,466 1 39,466

Vaerløse 18,483 1 18,483

Appendix 3. List with locations that meet the minimum required competitive saturation level

after the entrance of a Hunkemöller shop.

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Appendix 4 The Tasks of the Country Manager

Examining the tasks of the country manager, and the time he spends on different tasks each year:

Compulsory presence during meetings 20 days (LMO, PGB’s, Direction meetings)

City Population Competitors Total shops

+ 1 HKM Comp.

Sat.After Aalborg 121,100 2×Fleur, 3×H&M, Magasin,

HKM 8 15,138

Ǻrhus 222,559 4×Fleur, 3×H&M, 2×Change,

Magasin 11 20,233

Birkerod 18,998 18,998

Frederikssund 14,463 1 14,463

Grenaa 14,308 1 14,308

Greve 41,506 H&M 2 20,753

Horsens 49,457 Fleur, H&M 3 16,486

Ikast 14,517 1 14,517

Kalundborg 15,740 1 15,740

Korsør 14,894 1 14,894

Lillerød 15,382 1 15,382

Nyborg 15,797 1 15,797

Sølrod 14,530 1 14,530

City Population Competitors Total Shops

+ 1 HKM Comp.

Sat.After

Copenhagen 501,285 4×Fleur, 3×H&M, 11 45,571

2×Change,

Magasin Copenhagen

County

Brøndby 34,676 1 34,676

Gentofte 68,314 1 68,314

Gladsaxe 62,006 1 62,006

Hvidøvre 49,829 H&M, 2 24,915

Ishøj 21,023 1 21,251

Sollerød 31,494 1 31,494

Tarnby 39,466 1 39,466

Vallensbeak 12,332 1 12,332

Vaerløse 18,48 1 18,483

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Translating the weekly sales information. 21 days (52 * 0.4 day)

Receiving guests 20 days

(Visits from the Dutch headquarters, real estate persons, Unions, insurance companies)

Opening of new shops

(10 days per shop, visiting potential locations several times, discussing with Netherlands, hiring new personnel etc.) Monitoring the existing shops

(With a minimum of 15 visits per store a year)

On average a visit is costing halve a day, including travel time 15 visits × 0,5 day = 7,5 days per shop

Daily operations

(Writing of reports, analysing results, communication with headquarters, selection of personnel, weekly telephone meeting, communication with third parties, replying emails)

The daily operations account for about 35 percent of the total working time.

The total time available for the country manager is, after deducting the vacation and official off-days, about 46 weeks. Assuming that a workweek counts five days, the total amount of working days is 46 weeks × 5 days= 230 working days a year.

As becomes clear, regardless of the size of the organization or the number of shops, the following responsibilities have to be done each year:

Compulsory presence during meetings 20 days

Translating the weekly sales information. 21 days

Receiving guests 20 days

This means that every year, on for hand 61 days are in use, meaning that:

230 – 61 = 169 days are left to perform the other tasks.

Translating the above data into a formula to come to the total workload expressed in days a year we get:

Required Management Days = 61 + (new stores * 10 days) + (current stores * 8,5 days) * 1,35

This formula shows how the days necessary to perform the activities of the

country manager are dependent of the current number of stores and the new

stores that should be opened. On the basis of the formulated expansion

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objectives, a planning can be made for the number of days needed to perform all the management activities.

Situation in Denmark

Now that estimation for the number of management days can be made, the organization structure for the coming years can be designed. I will examine the required management days from 2001 till 2008 when the company reached its long-term expansion objectives.

2001/2002

Objective: Rebuilt the ten existing Darling Cherie stores into Hunkemöller stores, this can be seen as the creation of ten new stores, although at the same time they exist and need to be visited as well. Therefore:

Required management days = 61 + ( 10 * 10 ) + ( 10 * 7,5 ) * 1,35 = 319 days

In 2001/2002, the actual need for management days was 319 days. The

organization in Denmark, however, only has the country manager to perform this.

Meaning that they were short 319 – 230 days = 89 days. During that year, the tasks as described weren’t performed the way they should be. The country

manager compensated for the lack of assistance by delegating important tasks, but also by skipping them.

2003

No clear objectives, just further expansion. At them moment, the situation will be that eighteen shops will be operational at the end of the year:

Required management days = 61 + ( 8 * 10 ) + ( 14 * 8,5 ) * 1,35 = 336 days

(14 stores is taken as average, at the begin of 2003 there were ten stores, at the end eighteen stores) In comparison with the previous year, the situation is even worse.

The country manager is forced to work more than five days in order to keep the stores and the expansion going.

2004

Objective: The opening of four new shops.

Required management days = 61 + ( 4 * 10 ) + ( 20 * 8,5 ) * 1,35 = 366 days

As we can examine, this really seems to be the last year in which the country manager can handle everything him self. A new assistant should really be hired by now.

2005

Objective: The opening of four new shops

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Required management days = 61 + ( 4 * 10 ) + ( 24 * 8,5 ) * 1,35 = 412 days

Assuming that a new region manager has been hired, it can be seen that the situation is close to optimal; as the demand for management days is 412 this year and the supply will be 460 days. This would even imply that a part time region manager would be as much as necessary for this year. However, hiring a region manager will also mean that the country manager will spend more time on publicity, P&O, and control than now.

Taking into account that the new manager isn’t as experienced and perhaps needs more time.

2006

Objective: The opening of two new shops

Required management days = 61 + ( 2 10 ) + ( 27 8,5 ) * 1,35 = 419 days This year the company really needs two full time managers to handle all the operations.

2007

The final objective of twenty-one stores has been achieved; according to the current market conditions this should be the maximum number of shops in Denmark. However, according to the country manager the relocation of shops, expansion of net floor space and discussing new contracts will account for about ten days a year after 2007. Therefore, I will make the assumption that each year, still ten days will be spend regarding the shop development of Hunkemöller Denmark.

Required management days = 61 + ( 10 ) + ( 29 * 8,5 ) * 1,35 = 429 days 2008

Required management days = 61 + ( 10 ) + ( 29 * 8,5 ) * 1,35 = 429 days The long-term need for management days, with a number of 29 shops seems to be about 429 days a year. Taking 230 days as normal working load in a

List with cities with over fourteen thousand inhabitants, number of inhabitants, number and name of shops with lingerie related assortment, and the competitive saturation level.

Appendix 1.