Lego Case Study

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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.Knudstorp set up the following business strategies to ensure Lego’s profitability and growth:

* Turning the supply chain into an efficient one by contacting top retailers, filling the blank spaces in the supply chain and reducing cost * Reusing the components in making new products which decreased the number of different Lego component by half in production process, thus successfully cutting expense in production process * Targeting new customer segment by incorporating new ideas with the traditional Lego products. Lego entered into video games and started making their products based on popular themes based on Hollywood movies. They also introduced a new line of Lego product for girls. Working with numerous websites and online communities that feature Lego as a way to create art, Lego also became popular among adults.

3. What organizational design changes (strategies) were made to support the business strategies? What information systems changes (strategies) were implemented by Knudstorp to align with the changes in business strategy?

Ans.Lego made some very important organizational changes to support their business strategies. These organizational strategies are given below, * The new organizational culture of Lego made it clear that the company should not sacrifice the profit for doing innovation; which was a practice often done in past. * Lego changed its employee pay structure and offering incentives which encouraged employees to strive...
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