Lego Case Study

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1- HISTORY OF LEGO

I will be responsible for starting the presentation. In my part, I will begin by introducing the group’s members and saying what everyone is going to talk about. Secondly, I will begin by introducing our partners in LEGO to have a global information of the company, short but clear.

I will talk about the history of the company, beginning, growth, expansion and current affairs.

Later I’ll do a little description of their products, kind of them, why kids likes them, what they offer in their product, if they are safety or not…

And finally I will also focus on the organization of the company like its organizational chart, managers and where they operate.

Laura Ramírez Quirós

2- STRATEGIC PLANNING DECISIONS BY LEGO

Lego Toys in the company that presented and implemented some unique strategic decision that made it stronger, especially in during the world economic crisis in late 2000’s. During last 10 years Lego managed to introduce very innovative programs and decisions that shaped organization from inside but also managed to create a brand on how increase efficiency and effectiveness in higher levels of management. Lego went through 3 recognized strategic concepts that were the cornerstone of the operation in recent history, and these are: -Lego Serious Play

-Focus turned to core consumers and not sales
-Lego toy lines like Star Wars

1. Serious Play

The Lego Serious Play was created to help visualize and built better understanding among the employees of Lego.

The main idea about the aim of this Lego project is that “instead of having a conventional brainstorming meeting or workshop, using traditional methods and techniques that yield inconsistent results, the objective of Serious Play is to allow team members to build physical metaphors for their personal understanding of their company’s organizational entities using Lego toys.”

In other words, team member play a real game with Lego bricks by building, consulting, trying to find out each other’s strength and weaknesses, inventing and creating a better working environment and finally developing a detailed “world” of their company, its people and their responsibilities.

After being used initially by Lego, later was development as a brand and started to be sold as a consultancy product to other global firms like Nokia, Crysler etc.

2. Core Consumers vs Sales

Under the helm of the latest Lego CEO, Mr. Knudstorp, company managed to reorganize its operations and goals. The CEO was the one that initiated Lego Serious Play program, later he also managed to change the philosophy of operations while putting more emphasis to the core customers rather than concentrating solely on sales. Time magazine was reporting on the strategic endeavor by Mr. Knudstorp when he “stopped chasing sales and refocused the product line toward core consumers: the serious builders”. CEO was also cited saying that "Instead of growing, we actually insisted we didn't want to grow". Lego during this time concentrated its business in developed countries, mainly Europe and US, while putting a lot of emphasis on Christmas sales.

3. Lego toy lines

The toy market was largely affected by the surge in the computer/console gaming industry like SonyPlaystation, PC games, Wii etc. Lego shifted its policy of making independent pieces of toys to producing the Story line of toys such as Star Wars and Legos native line called Atlanticus. Lately it also launched a web based virtual game in response to high demand on e-products. These news lines enabled Lego maintain strong and register revenues in last quarter’s against a drop in toy markets.

Dren Selimi

3-PESTLE analysis
Political
Lego made sure that they were aware of the political situation of the...
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