significant declines in demand for its products worldwide‚ plunging revenues‚ and escalating debt. In 2004 a new CEO‚ Jorgen Vig Knudstorp‚ was appointed to lead the company and since then LEGO has significantly transformed into a successful multinational company renowned for its innovative and successful products. Write a well-researched report that analyses and describes how‚ under Jorgen Vig Knudstorp’s leadership‚ LEGO effectively manages innovation measurable in the popularity and success of its products
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systems and the organization design changes implemented by knudstorp align with the changes in business strategy? Advances in the field of information technology and introduction of new hi-tech form of entertainment such as tablets and gaming consoles had left Lego trailing in the entertainment field. Jorgen Vig Knudstorp was appointed as the CEO to revamp the company’s business process‚ organization structure and information systems. Knudstorp was quick to act and first made changes in the company’s
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toy world. In 1998‚ the firm posted a small loss. By the early 2000’s‚ the firm was burning cash losing almost $1 million a day. Jørgen Vig Knudstorp‚ a former McKinsey consultant who came to the family-owned Lego Group as an outsider in 2001 was named CEO in 2004. How did Knudstorp make a huge turnaround and rescued Lego? Knudstorp’s Business strategy Knudstorp understood the company was struggling mainly because of poor performance‚ missed deadlines‚ long development times‚ and poor deliver
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Project definition: LEGO is one of the largest companies in Denmark and a company with a very strong brand. But even so‚ their economy fell apart in 2003-2004 and we are interested in what they did wrong and what they did to turn their significant loss around to a profit in 2005. So our problem is: What caused LEGO’s financial problems in and what did they do to turn it around? This is very relevant‚ because it shows how even one of the biggest brands in a market can’t afford to relax in any aspect
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when that quickly changed Lego was not expecting it and furthermore not prepared. The company began to lose money‚ “by 2004‚ the company found itself close to extinction‚ losing $1 million a day.” (Saunders & Pearlson ‚ 2013) A new CEO‚ Jorgen Vig Knudstorp‚ was hired in an effort to bring the company back to its feet and the Lego toys back into children’s hands. The new CEO began to strategize and make changes to the company internally‚ its relationships and the Lego toys. Theses changes were
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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
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Christiansen(1891-1958) Main Country - Denmark Lego bricks Ole Kirk ‘s House The motto of the Lego Group “Det bedste er ikke for godt” (In Danish) “The best is the best” (In English) Godtfred Christiansen (1845-1928) Current CEO – Jorgen Vig Knudstorp (1968-present) Logos has changed many times… 1935 1940 1948 1957 1961 1973 1999-present 3 EUR BILLION(2012) Revenue 1 EUR BILLION (2012) Operating Income 706 EUR MILLION (2012) Net Income One of the BIGGEST Company In the World
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was lower compared to other products. LEGO‚ the plastic bricks had dominated the construction toy market for decades‚ but the company struggled to increase sales revenue. After the LEGO Group experienced several years of losses‚ they hired Jorgen Vig Knudstorp to save the company. The LEGO Group was on the brink of bankruptcy because of the changes in the toy industry‚ failure to control their increasing costs‚ did not streamline their operations‚ and
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the toy world. When new CEO Jorgen Vig Knudstorp‚ a father and former McKinsey consultant‚ took over‚ the company struggled with poor performance‚ missed deadlines‚ long development times‚ and poor deliver record. The most popular toys would run out and Lego was unable to ship enough products or manage production of its more complicated sets. Retail stores were frustrated‚ and that translated into reduced shelf space and ultimately to business losses. Knudstorp changed all of that. He reached
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best opportunity for improve-ments. The family who founded and ran the LEGO Group was sure that they had to change the company’s operations radically to get back on the right track. In March 2004 the former director of strategic development‚ Jorgen Vig Knudstorp‚ became part of the management team together with the board and CEO Kristiansen. After analysing the main problems they passed a seven-year-strategy plan . This case study gives you a deeper insight into the former and current situation
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