Lego Case Study Essay

Words: 1002
Pages: 5
Open Document
Lego case study

1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?

Ever since LEGO started experiencing double digit annual sales growth, (by launching new toy games, branded theme parks, entering the video game sector, introducing mobile applications, introducing toys for girls, etc.) they realized they needed a model that was standardized, modular and scalable. Hence, allowing them to expand to new markets in a less amount of time. They already had a decently established market in USA and UK; they were looking for an expansion in other countries as well. This model had to tackle major issues like scalability challenges, employee …show more content…
Corporate strategy: By knowing exactly what the market demanded, LEGO started producing toys for the consumers it wasn’t producing toys (exclusively for) previously. In a corporate strategy, the organization does a study of the market demands and produces products accordingly. They also noticed the growing rage among youngsters for gaming consoles; hence, they entered the gaming market by releasing their own virtual games.

Ref: http://smallbusiness.chron.com/different-types-business-strategies-4634.html

http://www.smartdraw.com/Blog/archive/2009/11/30/three-kinds-of-business-strategy.aspx

3. Are the changes implemented by Knurdstop an indication of hyper competition? Defend your position.

I don’t think hyper competition was the sole reason was LEGO going under a severe loss. The only companies that were also doing well in the toy market were Mattel and Mega Blocks. I don’t consider Mattel is a competition to Lego as the toys that both of them manufactured are drastically different from each other. One produces building blocks and the other playing toys. However, Mega Blocks was posing a threat to LEGO by selling building blocks at a lower price. This was possible because the materials used to make building blocks by the competitor were not of as good a quality as LEGO. LEGO being a famous brand could not dare compromise with the quality of their toys. Thus,
Show More

Related Documents: Lego Case Study Essay

Essay on Lego Case Study

Lego Case Study 1. What business goals were set by Knudstorp? Ans. Jorgen Vig Knudstorp, the CEO of Lego set the following goals for the company which was performing very poorly, * To remain profitable while maintaining growth, continuous innovation and quality of the products * To reach to broader customer segment * To cut expenses in production and supply chain and making these processes more efficient 2. What business strategies were set by Knudstorp? Ans.…

Words 962 - Pages 4

Essay on Lego Case Study Questions

Lego case study questions: 1 How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? The company was under terrible crisis with its sales dropping by 40% when Knudstorp became CEO in 2004. The main aim of knudstorp was to stabilize the sales and cut the costs so as to deal with the new reality of selling 40 percent less than what Lego had done two years earlier. Knudstorp encouraged designers to use the unused components…

Words 317 - Pages 2

Essay LEGO

Q1 Evaluate the external environment in which the LEGO Group operates in. Conducting the external environment analysis will allow us to examine the opportunities and threats that the LEGO Group faced. We will go through the environment level using PESTEL framework followed by industry level using Porter’s Five Forces Framework. 1. PESTEL Analysis PESTEL Analysis Positive Negative Political Economic Highly seasonal Presents uncertainty over sales Geographical scope and market presence Going…

Words 3166 - Pages 13

Essay about Introduction to Organizational Behavior

September 10, 2012 Professor Sanford DeVoe Introduction  About me     New Yorker PhD from Stanford GSB Live in downtown Toronto Currently Assistant Professor at Rotman   Since 2007 – teach in MBA, PhD, and BComm Study the psychology of incentives, motivation, and culture 2 Class Norms  Class will always start 10 minutes after the hour.  Arrive on time – if you’re late, please be discreet. 3 Agenda  What is Organizational Behaviour?  Organizational…

Words 2336 - Pages 10

Case Analysis Summaries Essay

Case solutions Case 2: Intel: Strategic decisions in locating a new assembly and test plant. Dalian in China is the most attractive site for Intel to locate Assembly and Test plant in terms of its low-costed workforce and high labor productivity with skilled workers, reliable and qualified power infrastructure, as well as a relatively open environment and the increasingly mature law and regulation. |Criteria |…

Words 1688 - Pages 7

Essay about LEGO Marketing Actions And Strategies

October 2014 EXECUTIVE SUMMARY The Lego Group was founded in 1932 by Ole Kirk Kristiansen (Mortensen 2012). Kristiansen, a master carpenter and joiner, initially manufactured stepladders, ironing boards, stools and wooden toys from his workshop in Billund, Denmark. Kristiansen worked under a motto of "Only the best is good enough" which is the same spirit that Lego still strives to work to today. As the Lego business grew from the 1930s until today, Lego has been required to re-evaluate and…

Words 4772 - Pages 20

LOGO case study Essay

Mgmt3347 individual case study TABLE OF CONTENTS Introduction The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not only the familiar logo, but also the expectation. LEGO acts as a guarantee of quality and originality. LEGO’s core values are imagination, creativity, fun, learning, caring and quality. The essay will show strategic analysis by identifying the industry, analyzing general…

Words 2458 - Pages 10

Product Development Essay

share and why it’s important Portion of market controlled by particular product or company Companies must grow to stay even There are forces that put pressure on profits, which is about gaining and maintaining market share 3. Summarize LEGO case study 1998-2004, LEGO lost money 4/7 years Due to innovation and supply chain problems Worked to eliminate inefficiency and align innovation capacity with the market The number of suppliers had gradually crept up to 11,000 — nearly twice as many as Boeing…

Words 1485 - Pages 6

Essay On Domestic Transformer

his 344 square foot apartment in Hong Kong to be able to change into 24 different designs, all by just sliding panels and walls. He calls this the “Domestic Transformer. Typical room layout: a small space partitioned into several tiny rooms, in this case, three bedrooms, a kitchen and a hallway. after 30 years transformation, the fixed spatial function of each room is replaced by a flexible application. Fixtures were replaced by the sliding wall, folded tables and chairs. C A S E 1976 S Aesthetics…

Words 2937 - Pages 12

Planning Collaborative Esl Lessons for Multiple Intelligences. Essay

Module 3 Assignment. PGCEi participant Name: Assignment title: Planning collaborative ESL lessons for Multiple Intelligences. Module 3 Approaches to teaching Module title: Tutor: XXXXXXXXXXX Module 3 Assignment. PGCEi participant Planning collaborative ESL lessons for Multiple Intelligences. A proposed lesson sequence I am primarily a secondary maths teacher, however, I also teach two periods of ESL (English as a Secondary Language) each week to year 6 non-native English…

Words 2987 - Pages 12