Lego Case Analysis
Summary of the case
The LEGO Group’s vision was to “inspire children to explore and challenge their own creative potential”. Its motto, “Only the Best is Good Enough,” had stuck with company since 1932 when Ole Kirk Christiansen, a Danish carpenter, established the company in the small town of Billund in Jutland, Denmark, to manufacture his wooden toy designs. As the company itself stipulated it: “It is LEGO philosophy that “good play” enriches a child’s life — and its subsequent adulthood. With this in mind, the LEGO Group has developed and marketed a wide range of products, all founded on the same basic philosophy of learning and developing — through play.”3 With this simple idea, the company had through its history grown into becoming a major multinational corporation, and was by 2009 the world’s fifth largest manufacturer of toys in terms of sale.
The LEGO group began in 1932 by Ole Kirk Christiansen, a carpenter from Billund. LEGO is from the Danish phrase leg good, which means play well. Since thousand 1960, the LEGO has release thousand of set variety of themes. An Adventure journey through five years from 2004 to 2009 has taught LEGO Group the fifth largest toys company who has signed contract with Flextronics. In 2004, radical changes took place within LEGO, organization as consequence of its internal crisis that drew the company near bankruptcy. One of the causes for dropping the revenue is about loosing of confidence of its core product, LEGO bricks. Furthermore, the diversification had resulted in vast complexity and inefficiency which confuse the customer and employee. The LEGO group had at the time roughly 11,000 supplier, a number that almost twice compare with Boeing used for its plane, that number has also the contributor of the dropping of LEGO revenue. In October 2004, Jorgen Vig Knudstorp was appointed as Kristiansen’s successor. The Jorgen was only the second person outside the founding family who held the position of CEO.
He defined
The LEGO Group’s vision was to “inspire children to explore and challenge their own creative potential”. Its motto, “Only the Best is Good Enough,” had stuck with company since 1932 when Ole Kirk Christiansen, a Danish carpenter, established the company in the small town of Billund in Jutland, Denmark, to manufacture his wooden toy designs. As the company itself stipulated it: “It is LEGO philosophy that “good play” enriches a child’s life — and its subsequent adulthood. With this in mind, the LEGO Group has developed and marketed a wide range of products, all founded on the same basic philosophy of learning and developing — through play.”3 With this simple idea, the company had through its history grown into becoming a major multinational corporation, and was by 2009 the world’s fifth largest manufacturer of toys in terms of sale.
The LEGO group began in 1932 by Ole Kirk Christiansen, a carpenter from Billund. LEGO is from the Danish phrase leg good, which means play well. Since thousand 1960, the LEGO has release thousand of set variety of themes. An Adventure journey through five years from 2004 to 2009 has taught LEGO Group the fifth largest toys company who has signed contract with Flextronics. In 2004, radical changes took place within LEGO, organization as consequence of its internal crisis that drew the company near bankruptcy. One of the causes for dropping the revenue is about loosing of confidence of its core product, LEGO bricks. Furthermore, the diversification had resulted in vast complexity and inefficiency which confuse the customer and employee. The LEGO group had at the time roughly 11,000 supplier, a number that almost twice compare with Boeing used for its plane, that number has also the contributor of the dropping of LEGO revenue. In October 2004, Jorgen Vig Knudstorp was appointed as Kristiansen’s successor. The Jorgen was only the second person outside the founding family who held the position of CEO.
He defined