Lego Case

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  • Topic: Lego, Lego Group, Billund, Denmark
  • Pages : 25 (6037 words )
  • Download(s) : 166
  • Published : December 16, 2011
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TABLE OF CONTENTS

Introduction1
Strategic Analysis2
A.Internal Core Competences2
B.Company mission and vision3
C.Future goals4
D.Organizational Structure5
E.7-S model analysis76
Improvements9
Open Innovation………………………………………………………………….10 A. Organization of innovation.…………………………………………………………………11 B. Matrix Innovation…………………………………………………………………………..…..12 Reference14
Appendices………………………….……………………………………………...15 A. Memos…….………………………………………………………………………………………..…15 B. Project A Log for mm215……………………………………………………………….…..17

Executive Summary

LEGO Group began in the workshop of Ole Kirk Christiansen, and has a long history which started with making wooden toys, plastic toys and then getting to the famous brick.

Because of the foreign competition, many companies, including LEGO, had to reevaluate their strategies to regain competitive advantage. As a consequence, the current corporate vision in Lego energizes all employees. Furthermore, the bond between them and top management can make every decision become a successful strategy.

LEGO Goals focus on increasing, developing and expanding “direct to consumer” activities. The company has three main divisions in order to secure a successful implementation: “Market and Product” division, “Community, Education and Direct” and Operation division.

This report discusses the 7 S model analyses: strategy, structure, systems, shared values, style, staff and skills. Excelling in this areas, LEGO became the fourth biggest toy manufacturer in the world and the brick was called the “Toy of the Century “.

LEGO Games provide the opportunity for a unique combination of building with Lego bricks and social play with family and friends. LEGO core values are: fun, creativity and quality.

The company structure consists of the Chief Executive Officer, the Chief Financial Officer and four Executive Vice Presidents each responsible for their own business area. The company has always been a family business and now it’s the first time when an outsider becomes part of it, but with his visionary leadership style pulled LEGO out of the crisis.

The biggest innovation of LEGO is the way they work with users and other external agents for development and product improvement. For the manufacturing of new products LEGO implemented a mechanism known as LEGO Development Process (LDP).

The company has split its innovation efforts into 8 distinct areas, from product development to business model innovation.

This report reviews and synthesizes the information presented on the project, and shows case of the Group’s strategies and vision. The issues of diversity and innovation occupy a central role in showing the company’s values. Nevertheless, the Group must advance and focus on its fundamental mission, adapting to the external realities that affect the market.

Introduction

The LEGO Group, a privately held company based in Billund, began in the workshop of Ole Kirk Christiansen (1891 – 1958), a carpenter, who began making wooden toys in 1932.

In 1947, it started to produce plastic toys, and in 1949, LEGO began producing the now famous bricks, calling them “Automatic Binding Bricks”. Bricks are colourful and they are accompanying array of gears, mini-figures and various other parts.

LEGO Company takes its name from the two Danish words ‘Leg Godt’ meaning “play well.” The LEGO Group's motto is ‘det bedste er ikke for godt’ which means roughly 'only the best is good enough’. This motto was created by Ole Kirk to encourage his employees never to skimp on quality, a value he believed in strongly. The motto is still used within the company today.

Today, LEGO Group ranks among the four biggest construction toy company around the world. Globally, there are approximately 10,000 employees in the LEGO Group, which is presented in more than 130 countries.

The concept of “Play Well” serves their philosophy for all LEGO products today, a philosophy encouraging children to be...
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