This website uses cookies to ensure you have the best experience. Learn more

Lego Case Study

6708 words - 27 pages

!

!
!
!
!
!
!
!
!
!
!
!

The LEGO

Case Study

2014
!
!
!
!
!
!
!
!
!
!

The A

CONTENTS !

!
!
1!
!
2!
!

!
3!
!
4!
!
5!
!
6!
!
7!
!

Introduction!
!

!

!

Difficult start to the decade 2001.!
Signs of Recovery 2002.!
Hopes dashed - 2003.!
LEGOLAND parks.!
LEGO Brand Stores.!
The Knudstorp Review.!

8!
!

Financial Focus - the !
Oveson addition. !

9!
!

Back to basics and the limit
to adjacencies. !

!
!

10 ! Developing the strategy !
why do we exist? !

!

11 ! First the action plan - first
!
things first. !

!
12 ! Summary and Conclusions!
!
13 !Appendices !
!
13.1 Knudstorp on!
!
...view middle of the document...

Not bad for a toy company based in Denmark. !

!

The future had not always looked so promising. In presenting his report to management in
June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no
punches, “We are on a burning platform, losing money with negative cash flow and a real
risk of debt default which could lead to a break up of the company”. Quite a turn around!!

!

How had the remarkable transition been achieved? In this case study we analyse the
performance of the company using our corporate strategy framework of analysis. We apply
the same techniques to Apple [2012] and Amazon [2014]. The results are fascinating,
offering comparison and contrast in the approaches used within each company.!
!
Check out also the Excel and Keynote Slides available as a FREE download from the site.!
The Lego Case Study.com from John Ashcroft and Company, experience worth sharing. Page 3

2 Difficult start to the decade - 2001!
For LEGO® it hadn’t been such a great start to the decade. In
2000 the company had a loss of DKK 831m, which the Chairman
described as “unsatisfactory”. There had been little or no growth
in the year. Global net turnover was DKK 9.5 billion, compared to
DKK 9.8 billion in 1999. In US dollars the company has lost $100
million on revenues of around $1.2 billion.!

!

2000 had been a very difficult year for the entire toy industry. But
despite many strengths and high points, the LEGO Company was
impacted because it was believed by many, including key
customers and management, to have lost focus.!

!

The LEGO Company planned to reduce or abandon certain
initiatives outside of the core business, including wristwatches,
publishing and other lifestyle products. At the same time, LEGO
intended to reduce losses in software and the LEGOLAND parks.!

!

The strategy was to refocus on the LEGO brand – stimulating
imagination, creativity and learning – “it is what children and
parents expect from us. We will continue to expand within this
area, applying a growth strategy with a huge potential and lower
risk”. !

!

!

More emphasis was to be placed on using leading-edge
technologies in ways that support LEGO brand values – such as
extending the “intelligent brick” concept of LEGO MINDSTORMS
to open up whole new ways of playing and learning, as well as
initiatives such as LEGO Studios, putting the power of
moviemaking in the hands of children.!

New products included the “power product” programme, as well development of the
TECHNIC and BASIC brands. It was believed that Bionicle, a new product with great
potential, first launched in Europe in February 2001, would combine physical and online
play with LEGO story building.!

!

Products such as Harry Potter, Bob the Builder and Life on Mars – many of which would
be launched or expanded in the next year and beyond – were new concepts to provide
children with imaginative “story starters”. The product...

Other assignments on Lego Case Study

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout

2033 words - 9 pages . The shoppers were charmed anyway, and acted on those gut feelings by choosing a coupon from the store that had flattered them over a coupon from a similar store. The study indicates that even flagrant flattery can sway customers. Business Psychology This month we’re looking at flattery and ingratiation, pervasive tools of influence in the workplace. Across the next few pages, we’ll show why insincere compliments and sucking up are effective—and

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages | |Recommended |The best way to learn mathematics is to PRACTICE, PRACTICE, and PRACTICE. At least forty minutes of study per day, every day| |Study Time |(including weekends and holidays) is necessary for the success in this class. You may need more (or less) study time | | |depending on your math background and skills. Forty minutes of study

Management

1477 words - 6 pages themselves to the Boeing Values. The Code of Conduct is a certification that occurs on a yearly basis to certify all employees that they will follow the Code of Conduct (The Boeing Company: Ethics, 1999-2012). The Ethics Challenge is where Boeing provides training to help educate employees about certain situations that may arise throughout the day. In this challenge, there are specific case scenarios that can be used (The Boeing Company: Ethics

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages of their focal points of having a successful business is having exceeding customer service, and there is no need to go out and acquire new talent when Tanglewood already has the staff capable of developing their KSAOs. However, Tanglewood will need to acquire new talent if the company decides to open up a new store. Should Tanglewood look for new employees or outsource for staffing? In Tanglewood’s case, I would recommend using an outside

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of

Similar Documents

Sustainable Efforts For Innovation Lego Essay

3172 words - 13 pages of responsibilities for innovation and area expectation enables the LEGO Group to inject the innovative spirits in a practical and effective way. 3) Successful Branding Strategy The cycles of corporate Branding: The case of the LEGO Company, California Management Review fall 2003, shows the details about how the LEGO Group developed brand strategies in cycles. Each cycle represented four distinct managerial challenges: stating, linking

Lego Group Essay

6502 words - 27 pages The LEGO Group A short presentation 2011 2 The LeGO GrOup 2011 Contents It all began in 1932 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The LeGO Group in key figures . . . . . . . . . . . . . . . . . . . . . . 5 Focus on growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

The Lego Group Essay

3407 words - 14 pages weathered through its financial troubles and is well on its way to being a top performing toy manufacturer. However, LEGO must be ready for sudden shifts in the market. The toy industry is very seasonal with most sales occur at the latter half of the year. Roughly sixty percent of LEGO’s production takes place in the second half of the year.[5] This being the case, LEGO must be prepared to meet fluctuating demand. Alternatives After careful

Strategic Leadership Essay

2344 words - 10 pages the culture of organization. Goldman Sachs’ previous executive director Greg Smith has provided us a good case study on this topic. Goldman Sachs, a multinational investment banking firm which has established for over 140 years and was once proud of its culture as “It revolved around teamwork, integrity, a spirit of humility, and always doing right by our clients.” (Goldman Sachs) It is the culture which attracted Greg Smith and made him decided