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Lego Movie Sociology
The Lego Movie is a film that focuses on the impression of life in a Lego world but misses key
concepts incorporated with Lego. At a first impression, the Lego Movie is viewed as a movie
directed towards children to stir their imagination but this would be ironic to what is being portrayed
in the film. By analyzing the ideas behind the movie in a sociological process, distinct themes can
be connected and reflected within reality. The Lego Movie can be viewed in a functionalist
perspective that is influenced by the conflict theory within the divided Lego society. To connect the
sociological views to their society, one must understand how they interact and why they interact the
way they do. From the beginning scenes of the movie, the viewer analyzing the content can
undeniably see the conformity of the citizens of Bricksburg. One strong example would be how
Emmet, ... Show more content on Helpwriting.net ...
To define, symbolic interaction theory looks at individual and group meaning–making, and focusing
on human action instead of large–scale social structures. In the case of the Lego movie, the
characters that are aware of the believed prophecy share their understandings to others and create
meanings to objects and people. For example, the followers of the prophecy made up by Vitruvius
were in a common judgement about the Piece of Resistance, The Special one, and the critical
Kragle. They used these objects and beliefs to come together in a resistance and create the ideology
that they must overthrow President Business in order to practice creativity. As a result of this, a
counterculture is established. A counterculture is a way of life and set of attitudes opposed to or at
variance with the prevailing social norm. The counterculture formed by the Master builders are
opposed to Lord Business' intent to eliminate creativity from being practiced and using his power to
control
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Lego Group : An Outsourcing Journey
Strategic Case Analysis
LEGO Group: An Outsourcing Journey
Valdosta State University
Business Policy 4900
Erie (Eric Scott and Jonathan Landrum)
Dr. Marko Horn
October 21, 2015
Table of Contents
Introduction: Page 3
Synopsis of the Situation: Page 3
Key Issues: Page 4
Solution: Page 5
The Company Now and Going Forward: Page 5
S.W.A.T. Analysis: Page 6
Porter's Five Forces: Page 7
Work Cited: Page 8
LEGO Group: An Outsourcing Journey
Introduction
LEGO Group was formed by a carpenter Ole Kirk Christiansen in 1932 in Billund, Denmark. The
Word, LEGO was meant to attract kids of various age groups, it is derived from Danish phrase, "leg
godt" meaning: "Play well". Initially LEGO was produced as a wooden brick, with their motto,
"Only the best is the best." The LEGO Brick was produced in 1958 composed of interlocking tubes
that offered unlimited building opportunities. The purpose of The LEGO Brick was to inspire
creative and controlled problem solving, while adhering to common curiosity using your everyday
imagination (Sandgaard Jensen). It was awarded "Toy of the century" by Fortune Magazine, as well
as British Association of Toy Retailers. LEGOs was sold in more than 130 countries. A couple major
products include: Pre–school products LEGO DUPLO, Play Themes LEGO city line, BIONICLE,
and many more Licensed Products built up around movies or books also including a LEGO
Education Board game. Market sizes category US, Australia, United Kingdom, New
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Lego Group Essay
Q1 Evaluate the external environment in which the LEGO Group operates in.
Conducting the external environment analysis will allow us to examine the opportunities and threats
that the LEGO Group faced. We will go through the environment level using PESTEL framework
followed by industry level using Porter's Five Forces Framework.
1. PESTEL Analysis
PESTEL Analysis
Positive
Negative
Political
Economic
Highly seasonal
Presents uncertainty over sales
Geographical scope and market presence
Going into new market for higher growth
Stagnant and mature market
Social
Change in playing habits
Stop playing with traditional toys
Large female market
Diversify and take up more market share
Technological
Growth in electronic toys
Might impact ... Show more content on Helpwriting.net ...
The differentiation in invocation and quality products will also render new entrants difficult to enter
the market. Although the access to distribution channel is low and the expected retaliation in terms
of price wars will low due to the being established companies, the threat of new entrants is assess to
be moderately.
b. Power of buyer
Buyer can have other alternatives buying from LEGO such as switching to Mega Bloks and the
switching cost for them is low. Therefore the bargaining power of buyer is considered high.
c. Power of suppliers
We would consider the bargaining power of supplier to be low as the switching cost is low and
materials used for making plastics and generally available and not scarce.
d. Intensity of Rivalry
LEGO group is ranked number three in the market and the fixed cost of the toy industry is high. The
exit barrier for toy industry is also high as there might be no buyer since most things are going
digital nowadays. Therefore, intensity of rivalry is high.
e. Threat of Substitute Products
The threat of substitute products is high as we can see that there are many other toys available from
electronic toys to playing in digital world.
From using the Porter's Five Forces framework, we can say that the industry faces threat from
buyers, competitors and substitute products. Attention should be place on competitors and substitute
products as they posed significant threat to the LEGO Group. We can see that competitors have been
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Lego Group : The World 's Third Biggest Toy Maker Owned By...
LEGO Group was started in 1932 by Ole Kirk Christiansen, who was a craftsman in Western
Denmark. After losing his employment, Christiansen began making wooden toys rather than
furniture. After a fire in his factory, he was compelled to reconstruct and chose to begin making
smaller than usual adaptations of houses and furniture he had worked on as a craftsman. He changed
to plastic in 1947 and by 1949 had assembled more than 200 plastic toys. Christiansen devised the
term "LEGO" for a company name; LEGO is derived from the Danish words "leg godt" signifying
"play well". The world's third biggest toy maker owned by family investment firm Kirkbi A/S is
well known for their notable multi–colored, plastic building blocks.
Chose LEGO because ... Show more content on Helpwriting.net ...
LEGO has a well–structured CSR plan and clearly explains its priority areas" (Burchell, 2008).
First I will review the Play Promise. LEGO provides play materials to children, and the best interest
of the child is at the core of their values. Children's rights are extremely important to LEGO which
means never compromising the quality and safety of our products and safeguarding the children they
engage directly with. Also, LEGO recognizes their unique position to support some child rights
proactively – and the main focus is Children's development and the importance play has in this
connection. The second part is the Partner Promise. It is required that the suppliers and close
partners treat their employees respectfully and promote responsible sourcing. Suppliers and close
partners sign a Supplier Code of Conduct and engage in dialogue and based on risk evaluations they
conduct third party audits to monitor its implementation. The third part is the Planet promise. LEGO
strives to minimize the negative effect and provide a positive impact on global society and the local
communities impacted by their operations and presence. A respectful stakeholder dialogue underpins
their work, and ensures that they engage constructively and openly with the stakeholders affected.
The six stakeholder groups that LEGO is geared towards are as follows: consumers, customers,
employee, business
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2 the Lego Group
The Lego Group: Building Strategy Problem Statement:
The Lego Group has been making toys successfully for 80 years and has grown to having close to
3.16 B USD in sales for the 2010 year. They specialize in toy building sets, a sector of the market
that has seen 13% growth in 2010 and is forecasted to grow further. However, the Lego Group is at a
cross–road in their business plan and requires a strategic plan going forward.
Currently, the company needs to look at its existing partnerships with Disney after Disney's
significant mergers and acquisitions in the past year. Lego is regarding Disney's purchase of Hasbro
and Mattel as a threat to their market share of the toy building block sets due to potentially losing
kids who ... Show more content on Helpwriting.net ...
Lego's CEO, Knudstorp, and his team of senior executive managers can address the dividend issue
with the board/owners and argue that the money is needed to grow the company. Cutting the
dividend of a private company does not have any effect on their perceived public image and brand
equity. Implementation should be immediate.
Video games are very complex and have developed immensely in the last thirty years. Lego Group
is not a specialized company for video games and should therefore remove its interest in developing
their online Lego Universe. It is imperative that the www.LEGO.com site be interactive and
engaging as well as serve to promote their customer project designing feature which has proven
successful. However, having a paid membership high end video game does not fit with the core
image of Lego being a building toy manufacturer with a vision to develop children. Lego Universe
should be scrapped as soon as possible and efforts should be directed to promoting successful lines
of building toys.
Disney has recently purchased two of Lego's main competitors, Mattel and Hasbro, who are the first
and second leading toy sellers respectively. Hasbro's deal with Marvel comics is now effectively
Disney's deal with Marvel comics. Lego has an existing partnership with Disney and should be
capitalizing on Tom Stagg's goal to
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P1 Explain Different Types And Purposes Of Organization
LO1 Explain the different types, size, and scope of organizations. LO2 Demonstrate the
interrelationship of the various functions within an organization and how they link to organizational
structure. Task 1: P1 Explain different types and purposes of organizations; public, private and
voluntary sectors and legal structures. [AC 1] Different authors has defined the Organization in
different ways, according to Keith Davis, "Organization may be defined as a group of individuals,
large of small, that is cooperating under the direction of executive leadership in the accomplishment
of the certain common object." (Publish your articles, 2015) The organization is a social or business
unit of people working together to achieve the common goals and the organization managed through
the ... Show more content on Helpwriting.net ...
[AC 2] Organizational structure is a system that consists of explicit and implicit institutional rules
and policies designed to outline how various work roles and responsibilities are delegated,
controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as
task distribution, coordination, and supervision to reach and achieve organizational objectives. The
organization can be structured in various ways, depending on its objectives. (IHH)– Insani Yardim
Vakfi– (Human relief foundation) As NGO the organizational structure is different than other types
of organization it has authorized committees as illustrated in Figure1, it consists of 4 main board and
each board has specific functions. 1. Board of trustees: The volunteers of this board are the directors
of IHH which hold the authority and responsibilities to ensure the execution of the objectives and
the maintaining of the values. They have specific duties collectively:  Appointed executive board
and supervisory board and change them when deemed
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Lego: Building for the Future
LEGO: Building for the future A Comprehensive Case Abrar Ahmad Shakeel Anjum Ali Qurashi
Group Members Khuram Shahzad Fahad Insha Figure Outline Introduction Situation Analysis
Problem Identification (Main & Sub) We will be approaching this case by first analyzing situation
broadly and then narrowing down our focus right to the problem and conclusion stage Alternative
Development Evaluation Selection Implementa tion Recomm endation Time Of Case Year 1999
Industry Of Operation Toy manufacturing Time Of Establishment 1932 By Ole the founder with few
employees Geographic Area Becloud, Denmark Meanings Danish word "Log Godt" meaning
"play well" Key People Ole Kirk Christianson ... Show more content on Helpwriting.net ...
RCX to program microcomputer which acts as a robot's brain ZNAP Recently launched construction
system Features vehicles which once built can be
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The Lego Group : A Company
The LEGO Group is a privately held company that is family owned. It's headquartered in Billund,
Denmark and has main offices located in China, London, Shanghai, Singapore, the United
Kingdom, and the United States. It was founded in 1932 by Ole Kirk Christiansen in a carpenter
shop that eventually lead to the LEGO we all know today. Most of their products are based off the
trademarked LEGO brick. The name of the company is a combination of two danish words, "leg
godt", which translates into play well. The company was passed from father to son and continues to
remain family owned by Kjeld Kirk Kristiansen, grandchild of the original founder.
A couple of interesting things occurred to Lego in its development during the1940s. Denmark was
occupied by the Germans and forced Godtfred Kirk Christiansen, who was planning to study in
Germany, to instead become a manager at LEGO. In 1955 Godtfred demonstrated the new product
at a toy fair in Nuremberg Germany, receiving negative reactions. Before developing a market
analysis department in 1959,the stud–and–tube coupling system that we see in every brick to this
day becomes patented in 1958, the same year Ole passed away, granting Godtfred as the new owner
of the company.
There is no doubt that LEGO holds a bond with people between childhood to adulthood. With their
mission, 'to inspire and develop the builders of tomorrow', they have become one of the most iconic
brands known to this day. As one of the leading toy companies in
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Save The Whales? Crisis Management At Lego
Save the Whales? Crisis Management at Lego
Introduction
Lego President and CEO Jørgen Vig Knudstorp was surprised when Greenpeace activists, in an
attempt to stop Arctic drilling, mounted a campaign criticizing his popular toy company for its
cobranding relationship with Shell Oil. At first, Knudstorp and his executive team at Lego
headquarters in Billund Denmark didn't quite understand Greenpeace's criticism. Was the criticism
justified? Why didn't Greenpeace tackle Shell directly? Would Greenpeace's campaign be taken
seriously or would it simply fade away? As Greenpeace beefed up its efforts through social media,
Lego's top management was left wondering how to respond to Greenpeace or whether they should
respond at all. And more importantly, executives didn't know whether Lego should continue its
business relationship with Shell.
Lego
Lego, from the Danish words "leg godt" or play well, was founded by Danish carpenter Ole Kirk
Christiansen in 1932 (Herman, 2012). Known for producing iconic studded plastic bricks that were
enjoyed by both children and adults, Lego produced more than 30 Lego–based video games and,
through licensing agreements, popular Star Wars and Harry Potter Lego sets (Baichtal & Meno,
2011). Lego also sold a series of Arctic sets including an Arctic Base Camp, Arctic Outpost, Arctic
Helicrane, Lego Ice Crawler, and Arctic Snowmobile. Those sets sold for $89.99, $49.99, $39.99,
$14.99, and $6.99 respectively. Lego's 2014 film, The Lego Movie, grossed more
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Lego Of The Lego Group
Background
The Lego group was established in 1932 by Ole Kirk Christiansen in Billund, Denmark. Lego today
is one of the most recognizable brands in the world. However, that does not mean that they haven't
had to make some changes along the way to reach and stay at that position. Lego needed to change
because of increased expansion of their product line which lead Lego to the brink of going bankrupt.
In the year 2000, the Lego group had a huge sales growth. By 2004, they were projected to lose
somewhere around two billion dollars. This lead to talks about bankruptcy, breakup of the company,
or even the sale of the company. Regardless of the talks, it was quite obviously that something had
to be done before any of that talk became a reality ... Show more content on Helpwriting.net ...
Kids were starting to lose interest in toys earlier than normal and became more interested in
electronic multimedia. The second change was that retailers who sold Lego products were changing
to become super stores like most are today. This lead to manufacturers needing to now also compete
for shelf space as well as customers. The third change in the toy industry was that manufacturing
was being outsourced to Asia. The cheaper labor costs in Asia lead to companies pricing their
products lower. This and the US dollars' worth going down hurt the Lego group because there were
more cheaply available products in the market. The last change in toy industry was basically an
exact copy of the Lego bricks that were being sold cheaper than Lego's. These new competitors
were able to produce a cheaper product and bring new products to the market faster that Lego could.
This became more trouble when the court failed to give them trademark protection on the bricks.
Overall, these were the major occurring to the toy industry that lead to a needed change by the Lego
group.
Change Initiatives
As discussed in the background, the Lego company needed to make some changes to avoid
bankruptcy and the breakup of the company. To make these changes the Lego group hired Jorgen
Vig Knudstorp as their new CEO in 2004. These changes were broken down into three phases that
would eventually bring the company out of potential bankruptcy. The three
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A Lego Case Study How Did The Company Adapt In An Ever...
(Working Title) A LEGO Case Study: How did the Company Adapt in an Ever Changing World?
By Steven Eyles
Today the brand of LEGO seems to be as ever expanding as the product itself, but with a life span of
just over 82 years the company must have had to adapt and change in this ever expanding world.
Even just over the past 20 years things have moved on so rapidly especially in terms of technology.
20 years ago the first full–length animated film was a year away from the cinema (Toy Story: USA
release – November 22nd 1995), Sony released the first PlayStation in Japan (December 3rd 1994)
and the top selling toy at Christmas was the 'Mighty Morphin Power Ranger' Toys.
In this present year (2014) the first–ever full–length theatrical LEGO movie is the top grossing film
in the United Kingdom (checked 19th November 2014), is the 'ninth biggest video game franchise in
the world' according to Warner Bros and in the biggest toy maker in the world after just taking over
Mattel's throne in 2014.
This report will firstly go back to the early years of LEGO, focusing on the founder and the initial
years that proved to be difficult for the family run company, also focusing on the early
experimentations of the famous LEGO brick. In the next chapter this report will focus even further
on the bricks design and the break though from all the tinkering to perfect the brick.
Chapter three will glance over nearly 40 years of the company's history. From the Duplo Brick's
creation in 1967 to
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Social Corporate Responsibility In The Lego Company
Social corporate responsibility is defined as a company's efforts to go above and beyond what is
required by regulators and environmental protection groups. These companies are highly aware of
the effects their business has on the environment and society. The LEGO Group is a company that
embraces social corporate responsibility on every level. Bonnie Byerly, A second grade teacher at
Reeds Elementary, has been able to see firsthand what LEGO Group is doing for the community,
schools in particular. LEGO Group has evolved over the years, taking into account gender equality,
making pledges to use earth friendly packaging and banning major brands that were not being
environmentally safe from being seen on their product.
Lego Corp was established in 1932 by founder Ole Kirk Kristiansen. With just 10 employees, they
start crafting wooden construction toys. The most famous of these were the wooden duck. As the
popularity of plastic toys rose in the mid–1950s, the company did away with wooden toys and
started focusing on manufacturing plastic automatic binding blocks. As early as the beginning of the
company, their motto was "Only the best is good enough." High quality and safe products have been
the focal point of LEGO Group for decades. Over the years LEGO Group has kept its word on that
motto and has supplied millions of families with creative toys that last.
LEGO Group is very clear about their goal when it comes to early education. They are dedicated to
their product and
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Lego Strategic Analysis
Lego strategic analysis
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Lego strategic analysis
Introduction:
This essay will consider firstly the position of Lego in relation to both the constraints of the internal
and external environment in the lead up to 2004. The essay will then go on to consider the position
of the Lego group from ... Show more content on Helpwriting.net ...
Strengths
Lego's key strengths may be seen as coming from both its brand recognition and its ability to use
innovative technology without moving away from the company's core values. Whilst there are many
other competitors in the toy or children's entertainment market Lego remains the brand of choice in
the field of construction toys despite the fall of other long term historical brand such as Meccano
(V&A 2010) and the rise of alternative substitute products such as video games (BBC News 2004).
As the case study indicates despite the traditional nature of the Lego offering the company has a
strong association with contemporary IT, design and manufacturing systems which help to make the
product both more durable as well as helping to reduce manufacturing costs thus making the field of
technology as key strength for the business.
Weaknesses
Lego's key weakness in the run up to 2004 may be seen as two fold. Firstly the company has failed
in a key area of the understanding of marketing in regard to understanding the needs of their
customers which may be seen as the focal point of the marketing concept (Brassington and Pettitt
2007). This can be clearly seen in the role out of the
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An Discussion Of The Toy Industry And Primarily On Lego...
Executive summary: –
In this report the discussion and analysis about the toy industry and mainly focuses on Lego and its
competitors. This report shows where Lego stands against its competitors in the market. And what
are the difficulties that it faces. It also has recommendations on how Lego should operate in regards
to get its business where it was and be successful.
Introduction: –
The Lego group is a toy making company best known for its manufacturing of the Lego brand toys.
Lego has a heritage that reaches back to the 1916. Lego came into existence in the rural village of
Billund in Denmark by a carpenter Ole Kirk Kristiansen who bought a wooden workshop and used
to build houses and furniture for the farmers there. In 1932, he started making wooden toys and
named them LEGO. This is how the Lego toys were brought into their creation. Lego has since
expanded globally with varied products and innovations to be the market leader in its category.
Their foray into setting up adventure theme parks known as Legoland is an example of its expansive
strategies.
Analysis of the Industry: – The toys industry is very massive. And with time is getting very
competitive. Toys in general are important when it comes to growing up and learning things. With
toys kids start to learn new things and develop interests from a very young age. There are so many
types of toys available in the market like dolls, electronic toys, non–electronic toys and board
games. Globally there has been a
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Do Toys Help Shape Us Into How We Function As Adults?
Think back to when you were a child. Did you have a favorite toy? Was it your Power Rangers,
Barbie's, Lincoln Logs, or LEGO's? We all had toys that we considered favorites and, probably, still
covet in some way today. We also probably still have some vivid memories associated with that toy.
While we remember our fondness for such toys, we probably haven't put much thought to the many
ways these toys helped shape us into who we are today.
Toys can be remarkably important aspects of a child's growth. They truly do help shape us into how
we function as adults. "Research has shown that children's learning mainly happens through play –
and what else is a toy for but to play? When children play with toys, they learn and develop various
skills ... Show more content on Helpwriting.net ...
"The name 'LEGO ' is an abbreviation of the two Danish words "leg godt", meaning "play well""
(LEGO History Timeline, 2012). That being said, have we ever really thought about what it means
to "play well" or what LEGO's can do for a child's development? Surprisingly, LEGO's really can
improve a child's physical, emotional, social and cognitive development at multiple stages
throughout their trek to adulthood.
For this assignment, I will focus primarily on how LEGO's can expand the development of children
two to three years of age. By the age of two, a child is in the core of transitioning from "baby" to
"child." That means he or she will experience significant milestones in their development. It may
also be quite the adjustment for the parent or guardian, too! There are many changes that happen at
this age, but perhaps the most important are those that happen with their motor, social, cognitive and
emotional evolution. This is a time when a child begins to discover that they can do things on their
own, form ideas and understanding of the world around them and interact with others both
physically and vocally. They are hyper–aware of their surroundings and become comfortable with
expressing such emotions that awareness evokes.
So, how could LEGO's improve a child's physical development? In thinking of kids' ages two to
three years old, use of LEGO's
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Lego Essay
LEGO was founded in 1932 by Ole Kirk Kristiansen in Billund, Denmark. Currently, the company
is owned by Ole Kirk's grandson Kjeld. The word LEGO comes from a Danish phrase, "leg godt,"
which means "play well." In Latin, the word "LEGO" translates to "I put together," a perfect
definition for the products LEGO would soon create.
Introduction. LEGO started as a small carpenter's workshop and has grown to become a global
enterprise. It is now one of the world's largest manufacturers of toys. LEGO has been awarded "Toy
of the Century" twice. Many people associate LEGO with their building bricks, but they offer a
variety of toys and buildable models. The brick was first made in 1958, 26 years after LEGO was
founded. LEGO's first products were step ladders, stools, and ironing boards. LEGO's first toy
product, a wooden duck, was first released in 1935. The wooden duck was created by Ole Kirk's son
Godtfred. LEGO soon established the motto "Only the best is good enough".
History. By the mid 1940's, LEGO had begun building plastic toy balls as well as an educational
traffic board game, "Monypoli." By 1950, LEGO had about 200 different products, the most popular
product being the building bricks. LEGO also began introducing buildable model toys in the 1950's.
In the 1960's, LEGO began selling toys in over 40 countries and opened its first LEGOLAND in
Billund. In the 1970's, LEGO introduced "DUPLO" to its product line. The first LEGO building
championship occurred in the 1980's.
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Company Profile : The Lego Group
PART 1: COMPANY PROFILE – THE LEGO GROUP
1. What Company did you select and why?
The company I selected is the Lego Group. The company is well known for its popular construction
toy brand, Lego. The company is still privately owned by the original family who established it in
1932 which is the Kirk Kristiansen family. Its headquarter is based in Billude, Denmark. The core
product of the company, the Lego brick, is available in more than 130 countries around the world
(Klausen, 2012). In 2014, the Lego group becomes the world 's top toy manufacturer by
outperforming Mattle, an American toy brand with its famous Babie dolls (Billing, 2014).
The reason why I selected the Lego Group company is that I want to study their business strategies
that help them survive tough competition in the toy industry, their success in this business for over
80 years, and also how they recently beat girls ' favorite Babie doll company, Mattel.
2. What business does the company operate in?
Products
When people hear the name "Lego", the first thing that comes to their mind usually is the Lego
brick. There are actually several kinds of products that the company offers in the market such as
video games, amusement parks which cooperate with Merlin Entertainment (Merlin Entertainment,
n.d.), magazines which are published by Dorling Kindersley (Dorling Kindersley, n.d.), and other
licensed products.In this case, the paper will mainly focus on their core product which is Lego
classical products.
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Lego 's Partnership With Oil Interests And The Destruction...
On July 8th, 2014, Greenpeace released a video criticizing LEGO's partnership with oil giant Shell.
The video, which has become a rallying point for environmental groups, sought to force LEGO to
end its partnership with Shell due to Shell's plans to implement offshore drilling in the Arctic.
Fearing that the drilling would lead to a massive oil spill which could destroy the Arctic ecosystem,
Greenpeace used the video to garner worldwide attention to the issue. Painting the relationship
between LEGO and Shell as promoting oil interests and the destruction of the Artic gave
Greenpeace an environmental issue that the rest of the world could identify with. Keeping the Arctic
and its ecosystem intact is in the interests of people globally, which made the video advertisement
even more potent.
Factual Assertions
Evaluating Greenpeace's ad for factual claims proves to be a tricky affair. Since the medium used is
LEGOs, their ability to portray real–life situations is a little distorted. While this does not take away
from the effectiveness of the ad, it makes it harder to determine what is actually factual.
The most obvious factual claim in the ad would be the partnership that has existed between Shell
and LEGO. This relationship has been in place through a series of co–branding deals since the
1960s. LEGO and Shell agreed to create a set of toys that carries the Shell logo and would be sold at
gasoline stations worldwide. The intended effect was to put LEGOs in the hands of more
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The Case Of Lego : Change Of Strategy
3. THE CASE OF LEGO
CHANGE OF STRATEGY
The company LEGO (Appendix 1), was far from the reality when in the year 2000 the famous
Bricks were named as 'the toy of the century' by Fortune Magazine. the numbers were reflecting a
different reality when in 2003 and 2004 the losses were of more than $400m on annual sales of over
$1b (Lego case of study 2014).
Once they analysed what were the main issues that led the company into that situation, two were the
main problems. First of all, the product portfolio was unprofitable, more than the 94% (Breen 2013).
They adopted many directions by diversifying in excess and lost their focus and went too far from
being the initial toy manufacturer that they wanted to be, they diversified in new areas such as Video
Games, Television, Retail Stores and the famous Theme Parks.
Moreover, the products were developed based on what the company believed the consumers wanted
(O'Neill 2010). The group completely forgot one of the keys of success of every company, the
customers and their needs.
The products that had given the company success, were forgotten. For that reason, the new strategy
was based to revive those 'core products' and bring with them back the values that their founders set
at the beginning (Breen 2013). (See Appendix 2)
2.2 MARKETING MIX
–PRODUCT
Lego has many diversified products, but the base of all of them are the plastic Bricks, which actually
makes the company successful as the result of the possibility of rebuilt the
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Essay about Lego Case
1. What were LEGO's main expectations and learnings from the relationship with Flextronics?
Prior to the Flextronics offshore outsourcing project, LEGO had a very tight control of all the
elements of the value chain. Their production plants were expansive and specialized which, in
theory, would create a higher degree of standardization. Their Swiss factories only produced
DUPLO toys and Technic products, their Danish factory solely produced LEGO System products,
and the U.S. facility focused on American demands, while only 5 to 10 percent of the LEGO
Group's total production was outsourced to Chinese manufacturers. The main goal in creating the
partnership with Flextronics was to hopefully reduce costs across the board. LEGO Group's ... Show
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Possible oversights include; change in lead times; exchange rate fluctuations, and increased
documentation. LEGO supply chain manager Michael Vaag summarized the documentation process
by stating, "Production in another country–even within the same company–requires ten times more
documentation in the company that it is moved from" (Larson 16). One plus from the Flextronics
experiment was the effect the move had on global expansion. Flextronics was able to provide much
needed operating bases in Hungary and Mexico which "provided the Danish company with the
necessary impetus for altering its global production network" (Larson 16). 2. What are the key
challenges in maintaining a relationship like the one between LEGO Flextronics?
Ideally, the only thing that should change when outsourcing a process is the cost at which the
products are produced. Everything else should be in sync. Lead times must be coordinated, proper
documentation should be completed, and most importantly, quality should remain the same. While
LEGO did not have problems with the quality of the products, they struggled with coordinating very
fixed manufacturing cycles with constantly changing demand cycles. Flextronics' business model
had traditionally been characterized by a "more stable and predictable operations" while the LEGO
Group needed "flexible and market responsive business solutions" (Larson 14). LEGO was
accustomed to "plus/minus 30% in demand fluctuation
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The Lego Group
The LEGO Group is recently experiencing a problematic phase, which has situated the organization
with a deficit of 1.8 billion DKK. The problems experienced by The LEGO Group can be attributed
to not being able to manage as well as stabilize a strategic supply chain. Successful SCM is crucial
for a manufacturing firm in order to harmonize the production process and internal information with
demand for the product. When considering the importance of supply chain management,
organizations need to study its effect on other major business processes as well as how it will
influence the organization as a whole. Supply chain management may directly or indirectly
influence major process such as inventory, capital investments, distribution ... Show more content on
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LEGO purchased a plastic injection molding machine in 1947 to create the plastic version of LEGO
bricks (they were originally wooden), and then expanded to pursue the idea of a toy system where
various toys would be included in a line of related products. Items such as doll furniture were also
developed as LEGO Group looked to enter different markets. During the 1970's the foundation of
the company's manufacturing facilities and research and development department were established
to keep the manufacturing methods up to date. A LEGO production plant was opened in Enfield,
Connecticut in the United States. This growth enabled The LEGO Group to continue expanding
their product offering over the decades to eventually land at 6 product segments by 2007: pre–school
products, creative building, play themes, licensed products, mindstorm NXT, LEGO Education, and
LEGO games. The consolidated portfolio was meant to reflect the need for more challenging
stimulation as children grow and develop.
Key Problems
This expansion was not well managed and a host of factors developed leading to the decline in 2004.
First was a loss of confidence in the core product, the LEGO brick, as the company continued to
diversify its product portfolio. Significant forecast errors driven primarily by unpredictable seasonal
demand fluctuations led to inventory issues where LEGO lacked one component or held too many
of another in stock. The global toy
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Stereotypes And Exploitation Of Gender Profiling
Abstract."Successful investigations of the process of gender embodiment must use these three basic
principles. First nature/nurture is indivisible. Second organisms–humans and otherwise– are active
processes, moving targets, from fertilization until death. Third, no single academic or clinical
discipline provides us with the true or best way to understand human sexuality" (Fausto–Sterling,
2000) Throughout this study I compared to of the largest toy brands in the world LEGO and Barbie,
they are both iconic pop culture symbols and were perfect for this paper. Researching thoroughly the
effects that negative stereotypes and exploitation of gender profiling can have. Through this
investigation I believe it was found that attitudes towards genders shift over time and as time goes
by the attitudes towards women for example in the work place have become more liberal. However
there will always be negative connotations around these matters as everyone's ideologies are
different. It is an interesting and important topic that everyone from all backgrounds, social statues
and ethnicities are part of yet it is a very multi–layered and complicated topic as there are so many
factors that come into play.
Intro.
"Gender is complex" (Lippa, A R 1994) there are unlimited influences that affect each and every one
of us as we develop as human beings; we are all unique models, shaped not only by our DNA but
also by the physical and emotional environment in which we find ourselves. It is
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The Lego Group : A Company
The Lego Group is a privately family–owned company based in Billund Denmark and was founded
in 1932 by Ole Kirk Christiansen. Legos are plastic construction toys; the history spans nearly 100
years; manufacturing of these interlocking toy bricks began in 1949 with the creation of small
wooden Lego bricks (developed into six pieces of 2 by 4 bricks that can be combined in
915,103,765 ways, creating systematic creativity) but has since then grown into an iconic brand with
factories around the world, supporting movies, games, competitions and six legoland amusement
parks. As of July 2015 the amount of 600 billion toy parts had been produced.
In order to encourage his employees to strive for quality Ole Kirk created the motto "det bedste er
ikke for godt'' which when roughly translated means "only the best is the best", which has helped the
company because in February 2015 Lego gained more global awareness by replacing Brand
Finance's "word most powerful brand".
FIGURE 2
FINANCIAL ANALYSIS
Market Summary (in German currency) for the year ending 2014
(mDKK) 2014 2013 2012 2011 2010
Consolidated Income Statement:
Revenue– 28,578 25,294 23,095 18,731 16,014
Expenses– 18,881 16,958 15,489 13,065 10,899
Operating P– 9,697 8,336 7,606 5,666 4,973
Financial income and expenses: 206 97 84 124 84
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Lego Project
Contents
1. Introduction – 3 – 1.1 Problem statement – 3 – 1.2 Delimitation – 3 – 1.3 Report structure – 4 –
1.4Methodology section – 4 –
2. Organizational structure and design of LEGO – 4 – 2.1 Organizational design of Lego – 5 –
3. Influence of organizational type to internal relationship in company – 7 – 3.1 Relationship with
customers – 8 –
4. SWOT – 8 – 4.1 Making weaknesses into strengths – 10 –
5. Suggestions of motivation improvements – 10 –
6. Conclusion – 11 –
7. Bibliography – 12 –
8. Appendicies – 13 –
9. Social contract – 13 – 10.2 Log book – 14 – 10.3 – 15 – 10.4 KarolisKaupas Memo – 16 – 10.6
Amr Youssef's Memo – 17 – 10.9 Executive summary – 18 –
1.
Introduction
The LEGO group ... Show more content on Helpwriting.net ...
But bigger problems are referred upwards to be solved by senior managers.
In this type of organization can be observed few characteristics of Weber's theory such as a clear–cut
division of labor, high level of specialization and the hierarchical authority applies to offices and
positions of the organization.
To coordinate and control activities in this type of organization, it is configured by two features:
horizontal and vertical differentiation. In horizontal differentiation Lego has been grouped by
functions (Finance, Sales, Human Resources, Purchase departments etc.). But in lower levels it has
been grouped by product (PMT1, PMT2, OTC) and customer type (Toys for customers) and
geographical location of departments.
Vertical differentiation shows that this company has good span of control, latter leads to inference
that Lego's organizational structure is flat– leading the structure of this organization is centralized,
so this company is functionally flexible. It means that Lego is ready to deal with different kind of
problems in any situation.
This organization has a lot of hierarchical levels, to control all their actions in this firm is used the
scalar chain principle of classical management theory: "the line of authority from superior to
subordinate, which runs from top to bottom of the organization; this chain, which results from the
unity–of–command principle, should be used as a channel for communication and decision
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Strategic Management and Leadership
Case Study Discussion Module: | Strategic Management and Leadership | Session: | Introduction to
Strategy and Strategic Management | Submitted by: | Lord Mills, | Exploring Strategy: 9th edition,
2010: Johnson, Scholes and Whittington: Prentice Hall Publishing LEGO Group: Working with
Strategy – pages 542 – 546 1. Explain how the development of strategy at the LEGO Group reflects
the key characteristics of strategic management. As a reminder, strategic management has three key
characteristics: strategic position, strategic choices and strategy into action (Johnson, Scholes and
Whittington, 2010. Exploring Strategy, 9th edition. Virginia Woolf and The Judicial Imagination.
London : Prentice Hall Publishing.) Let's use the ... Show more content on Helpwriting.net ...
Furthermore and as explained in point 1 above, children – as ultimate consumers of LEGO products
– were maturing earlier leaving no choice to LEGO but to improve/upgrade its products and services
offerings * The power of suppliers: although most toys were produced in China, LEGO had its
production in high cost countries leading to high procurement costs. * Competitive rivalry: LEGO
was facing strong competition from much bigger companies present in the local market such as
Mattel and Hasbro 3. What were the alternative strategies facing the LEGO Group in 2004? Why do
you think the LEGO Group followed the course that they did? Despite the new strategy (1995 – 98),
LEGO experienced its first ever deficit in 1998. The decline was mainly due to major fluctuations
including the rapidly changing environment. In 2004, LEGO faced the following alternative
strategies: * Moving into the digital gaming: with the strong competition from 'digital' companies,
LEGO could have envisaged moving into the digital era in order to compete with these new
companies. * Increase
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Lego Structure Of The Lego Company
Lego is one of the most recognizable companies across the world. The Lego Group was founded in
1932 by Ole Kirk Kristiansen and has since been passed down from generation to generation,
currently owned by Kjeld Kirk Kristiansen. The Lego Group has headquarters in Billund, Denmark
and main offices in USA, UK, China, and Singapore. The Lego name originated from the
abbreviation of two Danish words "leg godt" meaning "play well". The present–day Lego brick was
launched in 1958 with the interlocking principle which allowed for an infinite amount of building
possibilities. Because of the Lego Groups mass size there also comes a very precise corporate
structure. The Lego company is operated in a five–member Management Board. The Management
Board consists of the Chief Executive Officer(CEO), Chief Marketing Officer(CMO), Chief
Financial Officer(CFO), Chief Commercial Officer(CCO), and the Chief Operations
Officer(COO)/Chief HR Officer(CHRO). From there it is further broken down into a 21–member
Corporate Management and a board of directors. This corporate structure allows for individual
departments to work successfully within the larger corporation. With the Lego Groups mission to
"inspire and develop the builders of tomorrow" they have become one of the world's largest
manufactures of toys, valuing imagination, creativity, fun, learning, caring, and quality. The Lego
Group puts much emphasis on their desire to help children learn and develop essential skills purely
through
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The Lego Group
Student Name : Marimuthu, V.K. : Hariram, E. : Singh, R. Student Number : 19852274 20101233
20054057 Assignment Title : The LEGO Group: working with strategy. Date : 03 March 2012
Programme : BTECH–MANAGEMENT IV Question 1 Explain how the development of strategy at
the LEGO Group reflect the key characteristics of strategic management outlined in section 1.2 and
in the model in Figure 1.4? "Strategy is the long–term direction of an organization" (Johnson,
Whittington and Scholes, 2011, p.3). The LEGO Group started with the manufacture of stepladders,
ironing boards, stools and wooden toys and has grown into one of the top five toy makers in the
world (Johnson, Whittington and Scholes, 2011). ... Show more content on Helpwriting.net ...
Due to heavy financial losses and a weak capital structure affecting investment opportunities, the
Lego Group had to look within to find a path forward (Johnson, Whittington and Scholes, 2011).
The company had remained a family run firm for most of it`s history and by Kjeld reinforcing his
responsibility as CEO, it sent a clear signal that the family was behind the company. By divesting in
LEGOLAND parks, writing–off other assets and simplifying the corporate structure, this allowed
the LEGO Group to focus on it`s core business. Attention was directed towards resolving
distribution problems and getting closer to retailers in order to understand their sales to end
customers. Focus was placed on cutting costs and the entire procurement process was revised,
resulting in fewer suppliers and significant cost reductions. Supply chain management philosophy
changed from outsourced management, to in–house management. This strategy allowed for
flexibility and the ability to react to short–term changes in customer demand as a priority over cost
(Johnson, Whittington and Scholes, 2011). "Research shows that play and the use of toys like LEGO
can aid a child`s development immensely. It helps with basic spatial awareness and colour
recognition, but also stimulates a child`s creative and imaginative thinking" (Block Toys, 2011).
However, a rapidly evolving society, leaning more towards electronic games,
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Lego Group
Progress Report
The LEGO Group
09 www.LEGO.com Read about the Annual Report and the magazine The Brick on the back cover
The Progress Report – what to expect
The Progress Report is part of the overall reporting concept for the LEGO Group. The overall
reporting setup consists of three independent publications that interconnect and together form the
total 2009 reporting from the LEGO Group. Read more about the concept on the back cover of this
report. The Progress Report, which you are reading now, is targeted to those who are interested in
the detailed follow–up on progress of the LEGO Group regarding Environmental, Social and
Governance (ESG) activities linked to the LEGO Group's ability to deliver on the four promises
given ... Show more content on Helpwriting.net ...
nti–corruption Philanthropy
B = The LEGO Group's magazine The Brick
Printed matter
LEGO A/S Aastvej 1 DK–7190 Billund, Denmark Tel: CVR–no: Residence: Reporting Year:
Internet: E–mail: +45 79 50 60 70 54 56 25 19 Billund 1 January – 31 December www.LEGO.com
sustainability@LEGO.com
The LEGO Group – Progress Report 2009
3
KEY FIGURES FOR 2009
Key figures for 2009
2009
2008
2007
2006
Financial performance Revenue, DKK million Profit before special items, DKK million Tax on
profit for the year, DKK million Net profit for the year, DKK million Operating margin (ROS)
Return on equity (ROE) Return on invested capital (ROIC) 11,661 3,002 –683 2,204 24.9% 82.3%
139.5% 9,526 2,004 –500 1,352 22.0% 72.2% 101.8% 8,027 1,471 –386 1,028 18.1% 71.6% 69.7%
7,798 1,405 9 1,290 17.0% 147.1% 63.6%
Play Promise Number of product recalls Consumer Complaint Call Rate Net Promoter Score Index
1 0.093% 126 0 0.123% 120 0 0.124% 115 1 0.118% 111
People Promise Number of employees (headcount end of year) Sick leave Injury rate per million
working hours 8,616 2.9% 4.8 7,337 3.0% 4.4 4,723 3.2% 8.0 4,958 8.6
Partner Promise Number of quality audited suppliers Number of Code of Conduct audited suppliers
Overall satisfaction by customers (Customer Pulse) 2 48 119 23 18 119 8 22 111 107 23
Planet Promise Water consumption (1,000 m³) Total energy consumption in production (GWh)
Waste (tons) 116 155 7,970 68 108 3,057 92 119 2,422 71 124 4,252
For Planet
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How Did The Information Systems And The Organization...
1. How did the information systems and the organization design changes implemented by Knudstorp
align with the changes in business strategy?
By 2004 LEGO was racking up with misfortunes of around 1 million per/day. Knudstrop as the new
CEO with his administration ability and insight in business methodology put LEGO in most
commended position. The entire business had been a massive disappointment with the huge
misfortunes that affected Knudstrop to reconsider the pay structure by focusing on the cream layer
of the association.
Knudstrop comprehended the necessity for the Information framework and enhanced hierarchical
structure. His front line procedure of reusing the modules to fabricate new items went about as
rescue, where the module utilization was diminished to 7000 from 13000. Every module cost around
50000 euro, which coordinated in decreased expense for developing. In further new alterations are
developed in building up the module with decreased cost, managed quality and enhanced item
subjects with current business sector pattern helped LEGO to enhance its money related position in
the business sector.
Knudstrop focused on lessening time limitation and upgraded store network SCM (supply chain
management) by allocating the work to various areas. Which enhanced the business process. This
rearranged the building procedure of the association and aided in balancing out the cost.
Knudstrop trusted that the data framework was expected to decrease the disarray in
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Sustainable Efforts for Innovation-Lego
1. Introduction
LEGO is a combination of the Danish words "leg" and "godt", meaning "play well".
As their name and ideal, Lego has been beloved by the children as well as the parents for decades.
Not only as plastic toy bricks, but also effective educational tools, the LEGO Company enjoyed
continuous growth and broaden the global brand value. The LEGO brand moved to third place in
2002/2003 with only Coca–cola and Kellogg having greater respect among families with children.
Even though as the overall toy market faces challenges, LEGO's revenue and profits are increasing
rapidly, especially since 2005. This profitability didn't change even in the current recession in the
global market. The LEGO Group achieved record–breaking profits in ... Show more content on
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In addition to this restructuring, innovative management under new leadership began creating
positive synergies in 2005.
1) Collaborating with Customer Communities
In spring 2012, MIT Sloan Management Review had an article about the lessons from the LEGO
Group, regarding collaborating with customer communities. The authors explained how the LEGO
user communities emerged and how management's involvement with user groups has evolved and
the core principles that LEGO has formulated for successful interaction with its user groups. This
article let us explore the answer for an ongoing question to many organizations; how can companies
collaborate effectively with their customers? By February 2012, there were more than 150 known
user groups, with over 100,000 active adult fans worldwide. In 2005, LEGO created the Ambassador
Program to provide a fast and direct way for the company and its pans to get into contract with each
other. Representatives, drawn from across the community of LEO user groups, provide a fast and
direct way for LEGO managers to get in contact with adult fans. The program has provided
considerable value to both sides. Not only do fans inject energy and ideas, but in some cases they
help refocus products. For example, after the innovative communication with one of the users who
participated on the development team and was in the business
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Lego Group
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 of the value chain. Even though LEGO is a big brand, their profitability is not to be taken
for granted.
To answer the problem we used a history of LEGO, made a Value Chain, a SW–model and
organization structure.
There has been some significant ... Show more content on Helpwriting.net ...
Knudstorp then realized that the problem did not lie with the product, but with the company's
attempts in the 1990's to become a lifestyle brand with its own line of clothes and watches and they
built more theme parks as well. By doing this, they started neglecting their core business: the LEGO
brick.
Value–Chain of LEGO:
In March 2004, Knudstorp launched his dramatic turnaround plan: a mix of cost cutting,
philosophical renewal and back–to–basics simplicity. This Action Plan was emphasizing three main
themes: Set clear direction for the LEGO Group and fundamentally change the way they do
business. Restore competitiveness by focusing on costumers, in particular their profitability.
Reducing the level of risk by right sizing their activities, cost base and assets to a lower revenue
base.
Inbound logistics
Lego has reduced significantly its number of plastic resin suppliers, and has signed longer term
contracts which reduced and stabilized pricing, lowering costs and enabling better planning.
Operations
LEGO has rationalized production lines, reducing the number of products that could be made on
each machine, adding simplicity and reducing changeover costs. It established more fixed
production cycles, and better tied manufacturing to the rest of the supply chain. For example, it was
no longer acceptable to make manual changes in a molding machine without
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Strategy Development At The Lego Group
REGENTS UNIVERISTY LONDON
GLOBAL STRATEGY
CW1
Case Study (LEGO)
Hissam Malik
S00805291
LEGO GROUP
Q1) Using appropriate concepts, models and frameworks, identify, assess and analyze the features of
the external environment that have influenced strategy development at the LEGO Group.
ANS:
In 1932 Ole Kirk Christiansen founded LEGO in a village called Billund. Throughout the years a
single family has run it. They initially became famous for making wooden toys and then went on to
making the bricks and they further expanded their product line by making Lego video games and
selling Lego merchandise. The name LEGO means 'play well' in Danish. LEGO is mostly known for
the Lego brick, which has been their most important product , it was launched in 1958 and it has
been named as the toy of the century. (Lego) They initially started with 10 employees and now they
have more than 10,000 employees worldwide Lego has been a really successful company
worldwide, and in this case study it has been shown that how they went through their growth stages
and what strategies they implemented.
LEGO group has been affected and influenced externally throughout due to a large number of
factors. There are a few models and frameworks that can help us analyze the external environment
and what exactly did Lego do according to the case. The first model is the Porters 5 forces model
(Harper, 2013)
Porters 5 forces includes:
Threat of substitutes
Bargaining
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The Lego Group : An Organization Essay
Our Organization: The LEGO Group was founded in 1932 and has come a long way in almost 80
years. With such global success in their brand, it was easy to choose an organization to interview
that would provide us with the history and tools for analyzation of compensation plans. Below is the
mission statement that can be found on the LEGO website: "The ambition of this Event Manager
role is to upgrade event quality, establish comprehensive event concept, and support to establish
event toolbox as key priority with strategic approach for the success of LEGO US". Currently,
LEGO is one of the world's leading manufactures of play materials. The company is guided by the
motto, "Only the best is good enough," committing to the development of children and aiming to
inspire and develop the builders of tomorrow through creative play and learning. Valuing
imagination, creativity, fun, caring, quality, and learning is what drives LEGO Group. By sticking to
these values, LEGO holds themselves to the expectations that the people have towards the company
and its products. In addition to their commitment to the builders of tomorrow, LEGO Group makes 4
promises. The first promise they make is to their partners. Building partnerships with their
customers, suppliers, and intellectual property partners based on mutual value creation is
fundamental. The second promise they make to their people, to enable execution of the business
strategy and build the long–term health of the company. The
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Cross-Cultural Management
1. What are LEGO's values and corporate identity? How did these develop over time (prior to
LEGO Media Int'l)?
* The name LEGO in itself means "play well", the beginnings of the corporate identity were
designed into the brand name * GKC was responsible for the stud and tube system, which is
recognizable within the logo, as well as meant that all Lego blocks could fit together * In the 1970's,
GCK designed the "ten lego characteristics" which today represents the guidelines for development
and policy, and has become the foundation for current company values * The brand which was built
is considered to be the most valuable assets which Lego possesses * The LEGO brand book
establishes ways in which the values and ... Show more content on Helpwriting.net ...
* It was difficult for the LEGO executives and the software base employees to find common ground
in the beginning
3. Did Corporate HQ's cultural homogeneity influence LEGO' ability for cross–cultural
management? If so, how?
* The importance of the worldwide LEGO culture was stressed by management in 2005 and there
was agreement that there was shared commitment and recognition of challenges in turning LEGO
into a global brand organization * LEGO Land parks were developments which entailed setting up
presence in countries outside Denmark; the company applied its philosophy of transferring its values
but was careful to apply hands–off localization in a way that would not jeopardize the guidance of
the company headquarters * Because of the homogeneity of Headquarters, LEGO realized that it
would need to become proficient in cross–cultural management in order to continue to provide the
guidance which insured the transfer of philosophy; LEGO regards the high concentration of Danish
at HQ as a deterrent to creativity, essentially learning from their own weaknesses * LEGO placed a
strong emphasis on fun to facilitate cross–cultural learning which was not an element of Danish
culture, and thus, the majority of LEGO HQ; LEGO realized the U.K was responsible for integrating
the element of fun into the products and the culture, something which the Danish would not have
done otherwise * Ultimately, credit
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Disruption Case Study : Lego
Disruption Case Study
LEGO: Back to Bricks
LEGO, as we know, is everywhere today. Not only in their classic, cuboid shapes, but also in video
games, on the movie screen, on clothes, and in the formation of theme parks populating the globe.
Within a world that is increasingly being surrounded by colorful, snappable bricks, it is hard to
describe LEGO as anything other than a major success story. However, the brick road has not
always been yellow for the Danish firm. Up against the volatile toy industry, LEGO has had their
share of ups and downs, nearing bankruptcy in the early 2000s. One may say that LEGO has always
been unique, but it was not until this pivotal low they they became disruptive in the way they
operated as a brand. This ... Show more content on Helpwriting.net ...
The company began to make rash initiatives in an attempt to transition their brand from that of a
product, to one that embodied a lifestyle. Launching offshoot product lines, television series, and
theme parks, LEGO began heavily investing in business model extensions that would quickly crash
and burn. (Robertson & Hjulen) As a company, they lacked the expertise and validation to make
these ideas work.
Enter Jørgen Vig Knudstorp. In 2001, Knudstorp, a design thinker, joined the LEGO company as a
consultant and was promoted to CEO after just three years. He understood the complexity of the
market and how LEGO was inefficiently addressing those challenges. After meeting with several
company stakeholders, Jørgen was able to understand that the LEGO brand and core product were
the bread and butter of the company. Creating a messy ecosystem of disparate offerings and
products forced LEGO to divide its attention to such a scale that they began to ignore their main
customers, a common incumbent faux pas. (Billund) Knudstorp knew what to do. It was time to
strip the company down to its core–a ubiquitous brick. (Ringen) Under his lead, the company would
execute a multi–phase strategy to create a robust operational foundation that would serve as a
platform for resilient innovation.
As a response to demand–side disruption, LEGO began to pivot its organization to focusing on the
creation of customer value. The company
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Case Study Of The LEGO Group
Company Chosen: The LEGO group
Corporate Social Responsibility (CSR) is defined as "a business approach that contributes to
sustainable development by delivering economic, social and environmental benefits for all
stakeholders" ("Corporate Social Responsibility (Csr) Definition from Financial Times Lexicon",
2018). The LEGO group chooses to demonstrate their CSR to its stakeholders (children
everywhere), by primarily focusing on how to make the world a better place for its junior citizens.
Customers want to share with the world via social media or other methods the accomplishments of
their children so having a CSR policy is an excellent strategy.
Background
A stalwart believer of its motto "Only the best is good enough", the LEGO group is a a privately
held, family–owned company with headquarters in Billund, ... Show more content on
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Reasons vary from the benefits of CSR, the goodwill and marketing of the company and even as a
method for increasing the company's profit margin (Thorpe, 2013). In some areas, there are
significant cost savings affiliated with CSR. The
LEGO group believes that all children have the right to enjoy safe toys while having fun and
learning and while they admit that they do like making a profit, the company claims that innovating
children is its best reward (Sandgaard Jensen, 2015).
Allowing children from ages 3+ to build houses, bridges, vehicles and anything their little minds can
think of, encourages them to expand their minds and envision future realities and technologies.
Using environmental initiatives, LEGO is looking at ways to reduce the carbon emissions from the
building of their toys and factories. While LEGO toys are said to last for generations, the company
admits that its oil based materials is not sustainable and is looking at new ways to create long lasting
toys from lower costing materials.
Key Drivers of Corporate Social
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Sex Hormones And Its Effect On Gender
Introduction. "Gender is complex" (Lippa, A R 1994) there are unlimited influences that affect each
and every one of us as we develop as human beings; we are all unique models, shaped not only by
our DNA but also by the physical and emotional environment in which we find ourselves including
our biological genes, sex hormones and ongoing genetic and hormonal changes can be defined as
'nature' and influence physical development and sexual identity while family background, class and
belief systems, described as 'nurture' affect gender through the encouragement of social norms and
familiar gender roles. (Fausto–Sterling, A 2008) Away from the biological, peer group influences,
such as school friends and their families also reinforce gender stereotypes while in the wider world
mass media, from children 's TV to advertising campaigns, government guidelines on education and
community structure and various external influences such as culture and religious beliefs, and
according to Fausto–Sterling (2008) "all form the mannerisms of the individual and define 'gender'"
In this paper I aim to use the examples of two well–known products to examine the way in which
toy manufactures have impacted on this complex structure and to explore whether or not they
exploit traditional stereotypes for better or worse. I will also be looking at reports from
psychologists and sociologists to back up the views surrounding gender exploitations and the effects
they may have on children. This is an
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Case Analysis Lego A The Crisis
1. From early 1990s to 2004, the Lego Group, a long successful toymaker with a world–renowned
brand, fell into the edge of bankruptcy. Compared with the highest revenue in 1999, the revenue in
2014 decreased by 35.6% while the net profit was negative, seven times less than that in 1999, the
lowest in the past ten years. Its net profit margin and ROE were also the lowest. The gross margin
and inventory turnover were all lower than its competitors. The strategic moves in the two main
periods "growth period that wasn't" (1993–1998) and the "fix that wasn't" (1999–2004) lead to its
poor performance.
External Analysis
Substitutes: High. Fad toys, electronic products, videogames, online activities could easily be
substitutes of Lego products. ... Show more content on Helpwriting.net ...
The management shifted its strategy from steady organic growth and profitability into focusing on
growth in 1993 and then tried to restore profitability and growth through "fitness program" and
series of changes during the period of 1999 to 2004. The strategic actions deviated from some of the
ten principles.
The Lego Group tried to catch up the market trends during the period, but they ignored that the
industry total profit pool decreased by 50% Between 1999 and 2003. It's naturally for players to
reduce mass production and focus on core competency. However, the Lego Group invested
significantly in expansion not only in brick–based product lines, but also beyond the brick. The
expansion was not focusing on its core competency.
Instability of the management, laying more stress on general leadership experience, and "fitness
program" led to inefficiency and low moral/accountability among staff.
Non–outsourcing and in–house expansion without cooperating with partners boosted expenses. Two
retailing channels were too limited compared with competitors' diverse retail channels.
More complex design conflicted with automated production line. It largely increased molding cost /
production cost and caused an extremely low inventory turnover, much lower than its competitors.
Major customers were frustrated by stock–out and slow–moving inventory.
Currency fluctuations was also one of the main reasons for its unsatisfying performance.
Therefore, the strategic
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Lego Movie Sociology

  • 1. Lego Movie Sociology The Lego Movie is a film that focuses on the impression of life in a Lego world but misses key concepts incorporated with Lego. At a first impression, the Lego Movie is viewed as a movie directed towards children to stir their imagination but this would be ironic to what is being portrayed in the film. By analyzing the ideas behind the movie in a sociological process, distinct themes can be connected and reflected within reality. The Lego Movie can be viewed in a functionalist perspective that is influenced by the conflict theory within the divided Lego society. To connect the sociological views to their society, one must understand how they interact and why they interact the way they do. From the beginning scenes of the movie, the viewer analyzing the content can undeniably see the conformity of the citizens of Bricksburg. One strong example would be how Emmet, ... Show more content on Helpwriting.net ... To define, symbolic interaction theory looks at individual and group meaning–making, and focusing on human action instead of large–scale social structures. In the case of the Lego movie, the characters that are aware of the believed prophecy share their understandings to others and create meanings to objects and people. For example, the followers of the prophecy made up by Vitruvius were in a common judgement about the Piece of Resistance, The Special one, and the critical Kragle. They used these objects and beliefs to come together in a resistance and create the ideology that they must overthrow President Business in order to practice creativity. As a result of this, a counterculture is established. A counterculture is a way of life and set of attitudes opposed to or at variance with the prevailing social norm. The counterculture formed by the Master builders are opposed to Lord Business' intent to eliminate creativity from being practiced and using his power to control ... Get more on HelpWriting.net ...
  • 2.
  • 3. Lego Group : An Outsourcing Journey Strategic Case Analysis LEGO Group: An Outsourcing Journey Valdosta State University Business Policy 4900 Erie (Eric Scott and Jonathan Landrum) Dr. Marko Horn October 21, 2015 Table of Contents Introduction: Page 3 Synopsis of the Situation: Page 3 Key Issues: Page 4 Solution: Page 5 The Company Now and Going Forward: Page 5 S.W.A.T. Analysis: Page 6 Porter's Five Forces: Page 7 Work Cited: Page 8 LEGO Group: An Outsourcing Journey Introduction LEGO Group was formed by a carpenter Ole Kirk Christiansen in 1932 in Billund, Denmark. The Word, LEGO was meant to attract kids of various age groups, it is derived from Danish phrase, "leg godt" meaning: "Play well". Initially LEGO was produced as a wooden brick, with their motto, "Only the best is the best." The LEGO Brick was produced in 1958 composed of interlocking tubes that offered unlimited building opportunities. The purpose of The LEGO Brick was to inspire creative and controlled problem solving, while adhering to common curiosity using your everyday imagination (Sandgaard Jensen). It was awarded "Toy of the century" by Fortune Magazine, as well as British Association of Toy Retailers. LEGOs was sold in more than 130 countries. A couple major products include: Pre–school products LEGO DUPLO, Play Themes LEGO city line, BIONICLE, and many more Licensed Products built up around movies or books also including a LEGO Education Board game. Market sizes category US, Australia, United Kingdom, New ... Get more on HelpWriting.net ...
  • 4.
  • 5. Lego Group Essay Q1 Evaluate the external environment in which the LEGO Group operates in. Conducting the external environment analysis will allow us to examine the opportunities and threats that the LEGO Group faced. We will go through the environment level using PESTEL framework followed by industry level using Porter's Five Forces Framework. 1. PESTEL Analysis PESTEL Analysis Positive Negative Political Economic Highly seasonal Presents uncertainty over sales Geographical scope and market presence Going into new market for higher growth Stagnant and mature market Social Change in playing habits Stop playing with traditional toys Large female market Diversify and take up more market share Technological Growth in electronic toys Might impact ... Show more content on Helpwriting.net ... The differentiation in invocation and quality products will also render new entrants difficult to enter the market. Although the access to distribution channel is low and the expected retaliation in terms of price wars will low due to the being established companies, the threat of new entrants is assess to be moderately.
  • 6. b. Power of buyer Buyer can have other alternatives buying from LEGO such as switching to Mega Bloks and the switching cost for them is low. Therefore the bargaining power of buyer is considered high. c. Power of suppliers We would consider the bargaining power of supplier to be low as the switching cost is low and materials used for making plastics and generally available and not scarce. d. Intensity of Rivalry LEGO group is ranked number three in the market and the fixed cost of the toy industry is high. The exit barrier for toy industry is also high as there might be no buyer since most things are going digital nowadays. Therefore, intensity of rivalry is high. e. Threat of Substitute Products The threat of substitute products is high as we can see that there are many other toys available from electronic toys to playing in digital world. From using the Porter's Five Forces framework, we can say that the industry faces threat from buyers, competitors and substitute products. Attention should be place on competitors and substitute products as they posed significant threat to the LEGO Group. We can see that competitors have been ... Get more on HelpWriting.net ...
  • 7.
  • 8. Lego Group : The World 's Third Biggest Toy Maker Owned By... LEGO Group was started in 1932 by Ole Kirk Christiansen, who was a craftsman in Western Denmark. After losing his employment, Christiansen began making wooden toys rather than furniture. After a fire in his factory, he was compelled to reconstruct and chose to begin making smaller than usual adaptations of houses and furniture he had worked on as a craftsman. He changed to plastic in 1947 and by 1949 had assembled more than 200 plastic toys. Christiansen devised the term "LEGO" for a company name; LEGO is derived from the Danish words "leg godt" signifying "play well". The world's third biggest toy maker owned by family investment firm Kirkbi A/S is well known for their notable multi–colored, plastic building blocks. Chose LEGO because ... Show more content on Helpwriting.net ... LEGO has a well–structured CSR plan and clearly explains its priority areas" (Burchell, 2008). First I will review the Play Promise. LEGO provides play materials to children, and the best interest of the child is at the core of their values. Children's rights are extremely important to LEGO which means never compromising the quality and safety of our products and safeguarding the children they engage directly with. Also, LEGO recognizes their unique position to support some child rights proactively – and the main focus is Children's development and the importance play has in this connection. The second part is the Partner Promise. It is required that the suppliers and close partners treat their employees respectfully and promote responsible sourcing. Suppliers and close partners sign a Supplier Code of Conduct and engage in dialogue and based on risk evaluations they conduct third party audits to monitor its implementation. The third part is the Planet promise. LEGO strives to minimize the negative effect and provide a positive impact on global society and the local communities impacted by their operations and presence. A respectful stakeholder dialogue underpins their work, and ensures that they engage constructively and openly with the stakeholders affected. The six stakeholder groups that LEGO is geared towards are as follows: consumers, customers, employee, business ... Get more on HelpWriting.net ...
  • 9.
  • 10. 2 the Lego Group The Lego Group: Building Strategy Problem Statement: The Lego Group has been making toys successfully for 80 years and has grown to having close to 3.16 B USD in sales for the 2010 year. They specialize in toy building sets, a sector of the market that has seen 13% growth in 2010 and is forecasted to grow further. However, the Lego Group is at a cross–road in their business plan and requires a strategic plan going forward. Currently, the company needs to look at its existing partnerships with Disney after Disney's significant mergers and acquisitions in the past year. Lego is regarding Disney's purchase of Hasbro and Mattel as a threat to their market share of the toy building block sets due to potentially losing kids who ... Show more content on Helpwriting.net ... Lego's CEO, Knudstorp, and his team of senior executive managers can address the dividend issue with the board/owners and argue that the money is needed to grow the company. Cutting the dividend of a private company does not have any effect on their perceived public image and brand equity. Implementation should be immediate. Video games are very complex and have developed immensely in the last thirty years. Lego Group is not a specialized company for video games and should therefore remove its interest in developing their online Lego Universe. It is imperative that the www.LEGO.com site be interactive and engaging as well as serve to promote their customer project designing feature which has proven successful. However, having a paid membership high end video game does not fit with the core image of Lego being a building toy manufacturer with a vision to develop children. Lego Universe should be scrapped as soon as possible and efforts should be directed to promoting successful lines of building toys. Disney has recently purchased two of Lego's main competitors, Mattel and Hasbro, who are the first and second leading toy sellers respectively. Hasbro's deal with Marvel comics is now effectively Disney's deal with Marvel comics. Lego has an existing partnership with Disney and should be capitalizing on Tom Stagg's goal to ... Get more on HelpWriting.net ...
  • 11.
  • 12. P1 Explain Different Types And Purposes Of Organization LO1 Explain the different types, size, and scope of organizations. LO2 Demonstrate the interrelationship of the various functions within an organization and how they link to organizational structure. Task 1: P1 Explain different types and purposes of organizations; public, private and voluntary sectors and legal structures. [AC 1] Different authors has defined the Organization in different ways, according to Keith Davis, "Organization may be defined as a group of individuals, large of small, that is cooperating under the direction of executive leadership in the accomplishment of the certain common object." (Publish your articles, 2015) The organization is a social or business unit of people working together to achieve the common goals and the organization managed through the ... Show more content on Helpwriting.net ... [AC 2] Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated, controlled and coordinated. (Investopedia, 2017) , It determines the guidelines of activities such as task distribution, coordination, and supervision to reach and achieve organizational objectives. The organization can be structured in various ways, depending on its objectives. (IHH)– Insani Yardim Vakfi– (Human relief foundation) As NGO the organizational structure is different than other types of organization it has authorized committees as illustrated in Figure1, it consists of 4 main board and each board has specific functions. 1. Board of trustees: The volunteers of this board are the directors of IHH which hold the authority and responsibilities to ensure the execution of the objectives and the maintaining of the values. They have specific duties collectively:  Appointed executive board and supervisory board and change them when deemed ... Get more on HelpWriting.net ...
  • 13.
  • 14. Lego: Building for the Future LEGO: Building for the future A Comprehensive Case Abrar Ahmad Shakeel Anjum Ali Qurashi Group Members Khuram Shahzad Fahad Insha Figure Outline Introduction Situation Analysis Problem Identification (Main & Sub) We will be approaching this case by first analyzing situation broadly and then narrowing down our focus right to the problem and conclusion stage Alternative Development Evaluation Selection Implementa tion Recomm endation Time Of Case Year 1999 Industry Of Operation Toy manufacturing Time Of Establishment 1932 By Ole the founder with few employees Geographic Area Becloud, Denmark Meanings Danish word "Log Godt" meaning "play well" Key People Ole Kirk Christianson ... Show more content on Helpwriting.net ... RCX to program microcomputer which acts as a robot's brain ZNAP Recently launched construction system Features vehicles which once built can be ... Get more on HelpWriting.net ...
  • 15.
  • 16. The Lego Group : A Company The LEGO Group is a privately held company that is family owned. It's headquartered in Billund, Denmark and has main offices located in China, London, Shanghai, Singapore, the United Kingdom, and the United States. It was founded in 1932 by Ole Kirk Christiansen in a carpenter shop that eventually lead to the LEGO we all know today. Most of their products are based off the trademarked LEGO brick. The name of the company is a combination of two danish words, "leg godt", which translates into play well. The company was passed from father to son and continues to remain family owned by Kjeld Kirk Kristiansen, grandchild of the original founder. A couple of interesting things occurred to Lego in its development during the1940s. Denmark was occupied by the Germans and forced Godtfred Kirk Christiansen, who was planning to study in Germany, to instead become a manager at LEGO. In 1955 Godtfred demonstrated the new product at a toy fair in Nuremberg Germany, receiving negative reactions. Before developing a market analysis department in 1959,the stud–and–tube coupling system that we see in every brick to this day becomes patented in 1958, the same year Ole passed away, granting Godtfred as the new owner of the company. There is no doubt that LEGO holds a bond with people between childhood to adulthood. With their mission, 'to inspire and develop the builders of tomorrow', they have become one of the most iconic brands known to this day. As one of the leading toy companies in ... Get more on HelpWriting.net ...
  • 17.
  • 18. Save The Whales? Crisis Management At Lego Save the Whales? Crisis Management at Lego Introduction Lego President and CEO Jørgen Vig Knudstorp was surprised when Greenpeace activists, in an attempt to stop Arctic drilling, mounted a campaign criticizing his popular toy company for its cobranding relationship with Shell Oil. At first, Knudstorp and his executive team at Lego headquarters in Billund Denmark didn't quite understand Greenpeace's criticism. Was the criticism justified? Why didn't Greenpeace tackle Shell directly? Would Greenpeace's campaign be taken seriously or would it simply fade away? As Greenpeace beefed up its efforts through social media, Lego's top management was left wondering how to respond to Greenpeace or whether they should respond at all. And more importantly, executives didn't know whether Lego should continue its business relationship with Shell. Lego Lego, from the Danish words "leg godt" or play well, was founded by Danish carpenter Ole Kirk Christiansen in 1932 (Herman, 2012). Known for producing iconic studded plastic bricks that were enjoyed by both children and adults, Lego produced more than 30 Lego–based video games and, through licensing agreements, popular Star Wars and Harry Potter Lego sets (Baichtal & Meno, 2011). Lego also sold a series of Arctic sets including an Arctic Base Camp, Arctic Outpost, Arctic Helicrane, Lego Ice Crawler, and Arctic Snowmobile. Those sets sold for $89.99, $49.99, $39.99, $14.99, and $6.99 respectively. Lego's 2014 film, The Lego Movie, grossed more ... Get more on HelpWriting.net ...
  • 19.
  • 20. Lego Of The Lego Group Background The Lego group was established in 1932 by Ole Kirk Christiansen in Billund, Denmark. Lego today is one of the most recognizable brands in the world. However, that does not mean that they haven't had to make some changes along the way to reach and stay at that position. Lego needed to change because of increased expansion of their product line which lead Lego to the brink of going bankrupt. In the year 2000, the Lego group had a huge sales growth. By 2004, they were projected to lose somewhere around two billion dollars. This lead to talks about bankruptcy, breakup of the company, or even the sale of the company. Regardless of the talks, it was quite obviously that something had to be done before any of that talk became a reality ... Show more content on Helpwriting.net ... Kids were starting to lose interest in toys earlier than normal and became more interested in electronic multimedia. The second change was that retailers who sold Lego products were changing to become super stores like most are today. This lead to manufacturers needing to now also compete for shelf space as well as customers. The third change in the toy industry was that manufacturing was being outsourced to Asia. The cheaper labor costs in Asia lead to companies pricing their products lower. This and the US dollars' worth going down hurt the Lego group because there were more cheaply available products in the market. The last change in toy industry was basically an exact copy of the Lego bricks that were being sold cheaper than Lego's. These new competitors were able to produce a cheaper product and bring new products to the market faster that Lego could. This became more trouble when the court failed to give them trademark protection on the bricks. Overall, these were the major occurring to the toy industry that lead to a needed change by the Lego group. Change Initiatives As discussed in the background, the Lego company needed to make some changes to avoid bankruptcy and the breakup of the company. To make these changes the Lego group hired Jorgen Vig Knudstorp as their new CEO in 2004. These changes were broken down into three phases that would eventually bring the company out of potential bankruptcy. The three ... Get more on HelpWriting.net ...
  • 21.
  • 22. A Lego Case Study How Did The Company Adapt In An Ever... (Working Title) A LEGO Case Study: How did the Company Adapt in an Ever Changing World? By Steven Eyles Today the brand of LEGO seems to be as ever expanding as the product itself, but with a life span of just over 82 years the company must have had to adapt and change in this ever expanding world. Even just over the past 20 years things have moved on so rapidly especially in terms of technology. 20 years ago the first full–length animated film was a year away from the cinema (Toy Story: USA release – November 22nd 1995), Sony released the first PlayStation in Japan (December 3rd 1994) and the top selling toy at Christmas was the 'Mighty Morphin Power Ranger' Toys. In this present year (2014) the first–ever full–length theatrical LEGO movie is the top grossing film in the United Kingdom (checked 19th November 2014), is the 'ninth biggest video game franchise in the world' according to Warner Bros and in the biggest toy maker in the world after just taking over Mattel's throne in 2014. This report will firstly go back to the early years of LEGO, focusing on the founder and the initial years that proved to be difficult for the family run company, also focusing on the early experimentations of the famous LEGO brick. In the next chapter this report will focus even further on the bricks design and the break though from all the tinkering to perfect the brick. Chapter three will glance over nearly 40 years of the company's history. From the Duplo Brick's creation in 1967 to ... Get more on HelpWriting.net ...
  • 23.
  • 24. Social Corporate Responsibility In The Lego Company Social corporate responsibility is defined as a company's efforts to go above and beyond what is required by regulators and environmental protection groups. These companies are highly aware of the effects their business has on the environment and society. The LEGO Group is a company that embraces social corporate responsibility on every level. Bonnie Byerly, A second grade teacher at Reeds Elementary, has been able to see firsthand what LEGO Group is doing for the community, schools in particular. LEGO Group has evolved over the years, taking into account gender equality, making pledges to use earth friendly packaging and banning major brands that were not being environmentally safe from being seen on their product. Lego Corp was established in 1932 by founder Ole Kirk Kristiansen. With just 10 employees, they start crafting wooden construction toys. The most famous of these were the wooden duck. As the popularity of plastic toys rose in the mid–1950s, the company did away with wooden toys and started focusing on manufacturing plastic automatic binding blocks. As early as the beginning of the company, their motto was "Only the best is good enough." High quality and safe products have been the focal point of LEGO Group for decades. Over the years LEGO Group has kept its word on that motto and has supplied millions of families with creative toys that last. LEGO Group is very clear about their goal when it comes to early education. They are dedicated to their product and ... Get more on HelpWriting.net ...
  • 25.
  • 26. Lego Strategic Analysis Lego strategic analysis 1 of 5 http://www.oxbridgewriters.com/essays/estate–management/lego–strategic... Cookie Information » Search all our free essays... The free essays that we publish on Oxbridge Writers have been written by students. They are not the work of our Oxbridge qualified writers. But if you're looking for a custom written essay then we can help.... Get a quote for your own custom essay » Search » Share & Download Like 17 Tweet 0 3 Print Download Email Lego strategic analysis Introduction: This essay will consider firstly the position of Lego in relation to both the constraints of the internal and external environment in the lead up to 2004. The essay will then go on to consider the position of the Lego group from ... Show more content on Helpwriting.net ... Strengths
  • 27. Lego's key strengths may be seen as coming from both its brand recognition and its ability to use innovative technology without moving away from the company's core values. Whilst there are many other competitors in the toy or children's entertainment market Lego remains the brand of choice in the field of construction toys despite the fall of other long term historical brand such as Meccano (V&A 2010) and the rise of alternative substitute products such as video games (BBC News 2004). As the case study indicates despite the traditional nature of the Lego offering the company has a strong association with contemporary IT, design and manufacturing systems which help to make the product both more durable as well as helping to reduce manufacturing costs thus making the field of technology as key strength for the business. Weaknesses Lego's key weakness in the run up to 2004 may be seen as two fold. Firstly the company has failed in a key area of the understanding of marketing in regard to understanding the needs of their customers which may be seen as the focal point of the marketing concept (Brassington and Pettitt 2007). This can be clearly seen in the role out of the ... Get more on HelpWriting.net ...
  • 28.
  • 29. An Discussion Of The Toy Industry And Primarily On Lego... Executive summary: – In this report the discussion and analysis about the toy industry and mainly focuses on Lego and its competitors. This report shows where Lego stands against its competitors in the market. And what are the difficulties that it faces. It also has recommendations on how Lego should operate in regards to get its business where it was and be successful. Introduction: – The Lego group is a toy making company best known for its manufacturing of the Lego brand toys. Lego has a heritage that reaches back to the 1916. Lego came into existence in the rural village of Billund in Denmark by a carpenter Ole Kirk Kristiansen who bought a wooden workshop and used to build houses and furniture for the farmers there. In 1932, he started making wooden toys and named them LEGO. This is how the Lego toys were brought into their creation. Lego has since expanded globally with varied products and innovations to be the market leader in its category. Their foray into setting up adventure theme parks known as Legoland is an example of its expansive strategies. Analysis of the Industry: – The toys industry is very massive. And with time is getting very competitive. Toys in general are important when it comes to growing up and learning things. With toys kids start to learn new things and develop interests from a very young age. There are so many types of toys available in the market like dolls, electronic toys, non–electronic toys and board games. Globally there has been a ... Get more on HelpWriting.net ...
  • 30.
  • 31. Do Toys Help Shape Us Into How We Function As Adults? Think back to when you were a child. Did you have a favorite toy? Was it your Power Rangers, Barbie's, Lincoln Logs, or LEGO's? We all had toys that we considered favorites and, probably, still covet in some way today. We also probably still have some vivid memories associated with that toy. While we remember our fondness for such toys, we probably haven't put much thought to the many ways these toys helped shape us into who we are today. Toys can be remarkably important aspects of a child's growth. They truly do help shape us into how we function as adults. "Research has shown that children's learning mainly happens through play – and what else is a toy for but to play? When children play with toys, they learn and develop various skills ... Show more content on Helpwriting.net ... "The name 'LEGO ' is an abbreviation of the two Danish words "leg godt", meaning "play well"" (LEGO History Timeline, 2012). That being said, have we ever really thought about what it means to "play well" or what LEGO's can do for a child's development? Surprisingly, LEGO's really can improve a child's physical, emotional, social and cognitive development at multiple stages throughout their trek to adulthood. For this assignment, I will focus primarily on how LEGO's can expand the development of children two to three years of age. By the age of two, a child is in the core of transitioning from "baby" to "child." That means he or she will experience significant milestones in their development. It may also be quite the adjustment for the parent or guardian, too! There are many changes that happen at this age, but perhaps the most important are those that happen with their motor, social, cognitive and emotional evolution. This is a time when a child begins to discover that they can do things on their own, form ideas and understanding of the world around them and interact with others both physically and vocally. They are hyper–aware of their surroundings and become comfortable with expressing such emotions that awareness evokes. So, how could LEGO's improve a child's physical development? In thinking of kids' ages two to three years old, use of LEGO's ... Get more on HelpWriting.net ...
  • 32.
  • 33. Lego Essay LEGO was founded in 1932 by Ole Kirk Kristiansen in Billund, Denmark. Currently, the company is owned by Ole Kirk's grandson Kjeld. The word LEGO comes from a Danish phrase, "leg godt," which means "play well." In Latin, the word "LEGO" translates to "I put together," a perfect definition for the products LEGO would soon create. Introduction. LEGO started as a small carpenter's workshop and has grown to become a global enterprise. It is now one of the world's largest manufacturers of toys. LEGO has been awarded "Toy of the Century" twice. Many people associate LEGO with their building bricks, but they offer a variety of toys and buildable models. The brick was first made in 1958, 26 years after LEGO was founded. LEGO's first products were step ladders, stools, and ironing boards. LEGO's first toy product, a wooden duck, was first released in 1935. The wooden duck was created by Ole Kirk's son Godtfred. LEGO soon established the motto "Only the best is good enough". History. By the mid 1940's, LEGO had begun building plastic toy balls as well as an educational traffic board game, "Monypoli." By 1950, LEGO had about 200 different products, the most popular product being the building bricks. LEGO also began introducing buildable model toys in the 1950's. In the 1960's, LEGO began selling toys in over 40 countries and opened its first LEGOLAND in Billund. In the 1970's, LEGO introduced "DUPLO" to its product line. The first LEGO building championship occurred in the 1980's. ... Get more on HelpWriting.net ...
  • 34.
  • 35. Company Profile : The Lego Group PART 1: COMPANY PROFILE – THE LEGO GROUP 1. What Company did you select and why? The company I selected is the Lego Group. The company is well known for its popular construction toy brand, Lego. The company is still privately owned by the original family who established it in 1932 which is the Kirk Kristiansen family. Its headquarter is based in Billude, Denmark. The core product of the company, the Lego brick, is available in more than 130 countries around the world (Klausen, 2012). In 2014, the Lego group becomes the world 's top toy manufacturer by outperforming Mattle, an American toy brand with its famous Babie dolls (Billing, 2014). The reason why I selected the Lego Group company is that I want to study their business strategies that help them survive tough competition in the toy industry, their success in this business for over 80 years, and also how they recently beat girls ' favorite Babie doll company, Mattel. 2. What business does the company operate in? Products When people hear the name "Lego", the first thing that comes to their mind usually is the Lego brick. There are actually several kinds of products that the company offers in the market such as video games, amusement parks which cooperate with Merlin Entertainment (Merlin Entertainment, n.d.), magazines which are published by Dorling Kindersley (Dorling Kindersley, n.d.), and other licensed products.In this case, the paper will mainly focus on their core product which is Lego classical products. ... Get more on HelpWriting.net ...
  • 36.
  • 37. Lego 's Partnership With Oil Interests And The Destruction... On July 8th, 2014, Greenpeace released a video criticizing LEGO's partnership with oil giant Shell. The video, which has become a rallying point for environmental groups, sought to force LEGO to end its partnership with Shell due to Shell's plans to implement offshore drilling in the Arctic. Fearing that the drilling would lead to a massive oil spill which could destroy the Arctic ecosystem, Greenpeace used the video to garner worldwide attention to the issue. Painting the relationship between LEGO and Shell as promoting oil interests and the destruction of the Artic gave Greenpeace an environmental issue that the rest of the world could identify with. Keeping the Arctic and its ecosystem intact is in the interests of people globally, which made the video advertisement even more potent. Factual Assertions Evaluating Greenpeace's ad for factual claims proves to be a tricky affair. Since the medium used is LEGOs, their ability to portray real–life situations is a little distorted. While this does not take away from the effectiveness of the ad, it makes it harder to determine what is actually factual. The most obvious factual claim in the ad would be the partnership that has existed between Shell and LEGO. This relationship has been in place through a series of co–branding deals since the 1960s. LEGO and Shell agreed to create a set of toys that carries the Shell logo and would be sold at gasoline stations worldwide. The intended effect was to put LEGOs in the hands of more ... Get more on HelpWriting.net ...
  • 38.
  • 39. The Case Of Lego : Change Of Strategy 3. THE CASE OF LEGO CHANGE OF STRATEGY The company LEGO (Appendix 1), was far from the reality when in the year 2000 the famous Bricks were named as 'the toy of the century' by Fortune Magazine. the numbers were reflecting a different reality when in 2003 and 2004 the losses were of more than $400m on annual sales of over $1b (Lego case of study 2014). Once they analysed what were the main issues that led the company into that situation, two were the main problems. First of all, the product portfolio was unprofitable, more than the 94% (Breen 2013). They adopted many directions by diversifying in excess and lost their focus and went too far from being the initial toy manufacturer that they wanted to be, they diversified in new areas such as Video Games, Television, Retail Stores and the famous Theme Parks. Moreover, the products were developed based on what the company believed the consumers wanted (O'Neill 2010). The group completely forgot one of the keys of success of every company, the customers and their needs. The products that had given the company success, were forgotten. For that reason, the new strategy was based to revive those 'core products' and bring with them back the values that their founders set at the beginning (Breen 2013). (See Appendix 2) 2.2 MARKETING MIX –PRODUCT Lego has many diversified products, but the base of all of them are the plastic Bricks, which actually makes the company successful as the result of the possibility of rebuilt the ... Get more on HelpWriting.net ...
  • 40.
  • 41. Essay about Lego Case 1. What were LEGO's main expectations and learnings from the relationship with Flextronics? Prior to the Flextronics offshore outsourcing project, LEGO had a very tight control of all the elements of the value chain. Their production plants were expansive and specialized which, in theory, would create a higher degree of standardization. Their Swiss factories only produced DUPLO toys and Technic products, their Danish factory solely produced LEGO System products, and the U.S. facility focused on American demands, while only 5 to 10 percent of the LEGO Group's total production was outsourced to Chinese manufacturers. The main goal in creating the partnership with Flextronics was to hopefully reduce costs across the board. LEGO Group's ... Show more content on Helpwriting.net ... Possible oversights include; change in lead times; exchange rate fluctuations, and increased documentation. LEGO supply chain manager Michael Vaag summarized the documentation process by stating, "Production in another country–even within the same company–requires ten times more documentation in the company that it is moved from" (Larson 16). One plus from the Flextronics experiment was the effect the move had on global expansion. Flextronics was able to provide much needed operating bases in Hungary and Mexico which "provided the Danish company with the necessary impetus for altering its global production network" (Larson 16). 2. What are the key challenges in maintaining a relationship like the one between LEGO Flextronics? Ideally, the only thing that should change when outsourcing a process is the cost at which the products are produced. Everything else should be in sync. Lead times must be coordinated, proper documentation should be completed, and most importantly, quality should remain the same. While LEGO did not have problems with the quality of the products, they struggled with coordinating very fixed manufacturing cycles with constantly changing demand cycles. Flextronics' business model had traditionally been characterized by a "more stable and predictable operations" while the LEGO Group needed "flexible and market responsive business solutions" (Larson 14). LEGO was accustomed to "plus/minus 30% in demand fluctuation ... Get more on HelpWriting.net ...
  • 42.
  • 43. The Lego Group The LEGO Group is recently experiencing a problematic phase, which has situated the organization with a deficit of 1.8 billion DKK. The problems experienced by The LEGO Group can be attributed to not being able to manage as well as stabilize a strategic supply chain. Successful SCM is crucial for a manufacturing firm in order to harmonize the production process and internal information with demand for the product. When considering the importance of supply chain management, organizations need to study its effect on other major business processes as well as how it will influence the organization as a whole. Supply chain management may directly or indirectly influence major process such as inventory, capital investments, distribution ... Show more content on Helpwriting.net ... LEGO purchased a plastic injection molding machine in 1947 to create the plastic version of LEGO bricks (they were originally wooden), and then expanded to pursue the idea of a toy system where various toys would be included in a line of related products. Items such as doll furniture were also developed as LEGO Group looked to enter different markets. During the 1970's the foundation of the company's manufacturing facilities and research and development department were established to keep the manufacturing methods up to date. A LEGO production plant was opened in Enfield, Connecticut in the United States. This growth enabled The LEGO Group to continue expanding their product offering over the decades to eventually land at 6 product segments by 2007: pre–school products, creative building, play themes, licensed products, mindstorm NXT, LEGO Education, and LEGO games. The consolidated portfolio was meant to reflect the need for more challenging stimulation as children grow and develop. Key Problems This expansion was not well managed and a host of factors developed leading to the decline in 2004. First was a loss of confidence in the core product, the LEGO brick, as the company continued to diversify its product portfolio. Significant forecast errors driven primarily by unpredictable seasonal demand fluctuations led to inventory issues where LEGO lacked one component or held too many of another in stock. The global toy ... Get more on HelpWriting.net ...
  • 44.
  • 45. Stereotypes And Exploitation Of Gender Profiling Abstract."Successful investigations of the process of gender embodiment must use these three basic principles. First nature/nurture is indivisible. Second organisms–humans and otherwise– are active processes, moving targets, from fertilization until death. Third, no single academic or clinical discipline provides us with the true or best way to understand human sexuality" (Fausto–Sterling, 2000) Throughout this study I compared to of the largest toy brands in the world LEGO and Barbie, they are both iconic pop culture symbols and were perfect for this paper. Researching thoroughly the effects that negative stereotypes and exploitation of gender profiling can have. Through this investigation I believe it was found that attitudes towards genders shift over time and as time goes by the attitudes towards women for example in the work place have become more liberal. However there will always be negative connotations around these matters as everyone's ideologies are different. It is an interesting and important topic that everyone from all backgrounds, social statues and ethnicities are part of yet it is a very multi–layered and complicated topic as there are so many factors that come into play. Intro. "Gender is complex" (Lippa, A R 1994) there are unlimited influences that affect each and every one of us as we develop as human beings; we are all unique models, shaped not only by our DNA but also by the physical and emotional environment in which we find ourselves. It is ... Get more on HelpWriting.net ...
  • 46.
  • 47. The Lego Group : A Company The Lego Group is a privately family–owned company based in Billund Denmark and was founded in 1932 by Ole Kirk Christiansen. Legos are plastic construction toys; the history spans nearly 100 years; manufacturing of these interlocking toy bricks began in 1949 with the creation of small wooden Lego bricks (developed into six pieces of 2 by 4 bricks that can be combined in 915,103,765 ways, creating systematic creativity) but has since then grown into an iconic brand with factories around the world, supporting movies, games, competitions and six legoland amusement parks. As of July 2015 the amount of 600 billion toy parts had been produced. In order to encourage his employees to strive for quality Ole Kirk created the motto "det bedste er ikke for godt'' which when roughly translated means "only the best is the best", which has helped the company because in February 2015 Lego gained more global awareness by replacing Brand Finance's "word most powerful brand". FIGURE 2 FINANCIAL ANALYSIS Market Summary (in German currency) for the year ending 2014 (mDKK) 2014 2013 2012 2011 2010 Consolidated Income Statement: Revenue– 28,578 25,294 23,095 18,731 16,014 Expenses– 18,881 16,958 15,489 13,065 10,899 Operating P– 9,697 8,336 7,606 5,666 4,973 Financial income and expenses: 206 97 84 124 84 ... Get more on HelpWriting.net ...
  • 48.
  • 49. Lego Project Contents 1. Introduction – 3 – 1.1 Problem statement – 3 – 1.2 Delimitation – 3 – 1.3 Report structure – 4 – 1.4Methodology section – 4 – 2. Organizational structure and design of LEGO – 4 – 2.1 Organizational design of Lego – 5 – 3. Influence of organizational type to internal relationship in company – 7 – 3.1 Relationship with customers – 8 – 4. SWOT – 8 – 4.1 Making weaknesses into strengths – 10 – 5. Suggestions of motivation improvements – 10 – 6. Conclusion – 11 – 7. Bibliography – 12 – 8. Appendicies – 13 – 9. Social contract – 13 – 10.2 Log book – 14 – 10.3 – 15 – 10.4 KarolisKaupas Memo – 16 – 10.6 Amr Youssef's Memo – 17 – 10.9 Executive summary – 18 – 1. Introduction The LEGO group ... Show more content on Helpwriting.net ... But bigger problems are referred upwards to be solved by senior managers. In this type of organization can be observed few characteristics of Weber's theory such as a clear–cut division of labor, high level of specialization and the hierarchical authority applies to offices and positions of the organization. To coordinate and control activities in this type of organization, it is configured by two features: horizontal and vertical differentiation. In horizontal differentiation Lego has been grouped by functions (Finance, Sales, Human Resources, Purchase departments etc.). But in lower levels it has been grouped by product (PMT1, PMT2, OTC) and customer type (Toys for customers) and geographical location of departments. Vertical differentiation shows that this company has good span of control, latter leads to inference that Lego's organizational structure is flat– leading the structure of this organization is centralized, so this company is functionally flexible. It means that Lego is ready to deal with different kind of problems in any situation. This organization has a lot of hierarchical levels, to control all their actions in this firm is used the scalar chain principle of classical management theory: "the line of authority from superior to subordinate, which runs from top to bottom of the organization; this chain, which results from the unity–of–command principle, should be used as a channel for communication and decision
  • 50. ... Get more on HelpWriting.net ...
  • 51.
  • 52. Strategic Management and Leadership Case Study Discussion Module: | Strategic Management and Leadership | Session: | Introduction to Strategy and Strategic Management | Submitted by: | Lord Mills, | Exploring Strategy: 9th edition, 2010: Johnson, Scholes and Whittington: Prentice Hall Publishing LEGO Group: Working with Strategy – pages 542 – 546 1. Explain how the development of strategy at the LEGO Group reflects the key characteristics of strategic management. As a reminder, strategic management has three key characteristics: strategic position, strategic choices and strategy into action (Johnson, Scholes and Whittington, 2010. Exploring Strategy, 9th edition. Virginia Woolf and The Judicial Imagination. London : Prentice Hall Publishing.) Let's use the ... Show more content on Helpwriting.net ... Furthermore and as explained in point 1 above, children – as ultimate consumers of LEGO products – were maturing earlier leaving no choice to LEGO but to improve/upgrade its products and services offerings * The power of suppliers: although most toys were produced in China, LEGO had its production in high cost countries leading to high procurement costs. * Competitive rivalry: LEGO was facing strong competition from much bigger companies present in the local market such as Mattel and Hasbro 3. What were the alternative strategies facing the LEGO Group in 2004? Why do you think the LEGO Group followed the course that they did? Despite the new strategy (1995 – 98), LEGO experienced its first ever deficit in 1998. The decline was mainly due to major fluctuations including the rapidly changing environment. In 2004, LEGO faced the following alternative strategies: * Moving into the digital gaming: with the strong competition from 'digital' companies, LEGO could have envisaged moving into the digital era in order to compete with these new companies. * Increase ... Get more on HelpWriting.net ...
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  • 54. Lego Structure Of The Lego Company Lego is one of the most recognizable companies across the world. The Lego Group was founded in 1932 by Ole Kirk Kristiansen and has since been passed down from generation to generation, currently owned by Kjeld Kirk Kristiansen. The Lego Group has headquarters in Billund, Denmark and main offices in USA, UK, China, and Singapore. The Lego name originated from the abbreviation of two Danish words "leg godt" meaning "play well". The present–day Lego brick was launched in 1958 with the interlocking principle which allowed for an infinite amount of building possibilities. Because of the Lego Groups mass size there also comes a very precise corporate structure. The Lego company is operated in a five–member Management Board. The Management Board consists of the Chief Executive Officer(CEO), Chief Marketing Officer(CMO), Chief Financial Officer(CFO), Chief Commercial Officer(CCO), and the Chief Operations Officer(COO)/Chief HR Officer(CHRO). From there it is further broken down into a 21–member Corporate Management and a board of directors. This corporate structure allows for individual departments to work successfully within the larger corporation. With the Lego Groups mission to "inspire and develop the builders of tomorrow" they have become one of the world's largest manufactures of toys, valuing imagination, creativity, fun, learning, caring, and quality. The Lego Group puts much emphasis on their desire to help children learn and develop essential skills purely through ... Get more on HelpWriting.net ...
  • 55.
  • 56. The Lego Group Student Name : Marimuthu, V.K. : Hariram, E. : Singh, R. Student Number : 19852274 20101233 20054057 Assignment Title : The LEGO Group: working with strategy. Date : 03 March 2012 Programme : BTECH–MANAGEMENT IV Question 1 Explain how the development of strategy at the LEGO Group reflect the key characteristics of strategic management outlined in section 1.2 and in the model in Figure 1.4? "Strategy is the long–term direction of an organization" (Johnson, Whittington and Scholes, 2011, p.3). The LEGO Group started with the manufacture of stepladders, ironing boards, stools and wooden toys and has grown into one of the top five toy makers in the world (Johnson, Whittington and Scholes, 2011). ... Show more content on Helpwriting.net ... Due to heavy financial losses and a weak capital structure affecting investment opportunities, the Lego Group had to look within to find a path forward (Johnson, Whittington and Scholes, 2011). The company had remained a family run firm for most of it`s history and by Kjeld reinforcing his responsibility as CEO, it sent a clear signal that the family was behind the company. By divesting in LEGOLAND parks, writing–off other assets and simplifying the corporate structure, this allowed the LEGO Group to focus on it`s core business. Attention was directed towards resolving distribution problems and getting closer to retailers in order to understand their sales to end customers. Focus was placed on cutting costs and the entire procurement process was revised, resulting in fewer suppliers and significant cost reductions. Supply chain management philosophy changed from outsourced management, to in–house management. This strategy allowed for flexibility and the ability to react to short–term changes in customer demand as a priority over cost (Johnson, Whittington and Scholes, 2011). "Research shows that play and the use of toys like LEGO can aid a child`s development immensely. It helps with basic spatial awareness and colour recognition, but also stimulates a child`s creative and imaginative thinking" (Block Toys, 2011). However, a rapidly evolving society, leaning more towards electronic games, ... Get more on HelpWriting.net ...
  • 57.
  • 58. Lego Group Progress Report The LEGO Group 09 www.LEGO.com Read about the Annual Report and the magazine The Brick on the back cover The Progress Report – what to expect The Progress Report is part of the overall reporting concept for the LEGO Group. The overall reporting setup consists of three independent publications that interconnect and together form the total 2009 reporting from the LEGO Group. Read more about the concept on the back cover of this report. The Progress Report, which you are reading now, is targeted to those who are interested in the detailed follow–up on progress of the LEGO Group regarding Environmental, Social and Governance (ESG) activities linked to the LEGO Group's ability to deliver on the four promises given ... Show more content on Helpwriting.net ... nti–corruption Philanthropy B = The LEGO Group's magazine The Brick Printed matter LEGO A/S Aastvej 1 DK–7190 Billund, Denmark Tel: CVR–no: Residence: Reporting Year: Internet: E–mail: +45 79 50 60 70 54 56 25 19 Billund 1 January – 31 December www.LEGO.com sustainability@LEGO.com The LEGO Group – Progress Report 2009 3 KEY FIGURES FOR 2009 Key figures for 2009 2009 2008
  • 59. 2007 2006 Financial performance Revenue, DKK million Profit before special items, DKK million Tax on profit for the year, DKK million Net profit for the year, DKK million Operating margin (ROS) Return on equity (ROE) Return on invested capital (ROIC) 11,661 3,002 –683 2,204 24.9% 82.3% 139.5% 9,526 2,004 –500 1,352 22.0% 72.2% 101.8% 8,027 1,471 –386 1,028 18.1% 71.6% 69.7% 7,798 1,405 9 1,290 17.0% 147.1% 63.6% Play Promise Number of product recalls Consumer Complaint Call Rate Net Promoter Score Index 1 0.093% 126 0 0.123% 120 0 0.124% 115 1 0.118% 111 People Promise Number of employees (headcount end of year) Sick leave Injury rate per million working hours 8,616 2.9% 4.8 7,337 3.0% 4.4 4,723 3.2% 8.0 4,958 8.6 Partner Promise Number of quality audited suppliers Number of Code of Conduct audited suppliers Overall satisfaction by customers (Customer Pulse) 2 48 119 23 18 119 8 22 111 107 23 Planet Promise Water consumption (1,000 m³) Total energy consumption in production (GWh) Waste (tons) 116 155 7,970 68 108 3,057 92 119 2,422 71 124 4,252 For Planet ... Get more on HelpWriting.net ...
  • 60.
  • 61. How Did The Information Systems And The Organization... 1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? By 2004 LEGO was racking up with misfortunes of around 1 million per/day. Knudstrop as the new CEO with his administration ability and insight in business methodology put LEGO in most commended position. The entire business had been a massive disappointment with the huge misfortunes that affected Knudstrop to reconsider the pay structure by focusing on the cream layer of the association. Knudstrop comprehended the necessity for the Information framework and enhanced hierarchical structure. His front line procedure of reusing the modules to fabricate new items went about as rescue, where the module utilization was diminished to 7000 from 13000. Every module cost around 50000 euro, which coordinated in decreased expense for developing. In further new alterations are developed in building up the module with decreased cost, managed quality and enhanced item subjects with current business sector pattern helped LEGO to enhance its money related position in the business sector. Knudstrop focused on lessening time limitation and upgraded store network SCM (supply chain management) by allocating the work to various areas. Which enhanced the business process. This rearranged the building procedure of the association and aided in balancing out the cost. Knudstrop trusted that the data framework was expected to decrease the disarray in ... Get more on HelpWriting.net ...
  • 62.
  • 63. Sustainable Efforts for Innovation-Lego 1. Introduction LEGO is a combination of the Danish words "leg" and "godt", meaning "play well". As their name and ideal, Lego has been beloved by the children as well as the parents for decades. Not only as plastic toy bricks, but also effective educational tools, the LEGO Company enjoyed continuous growth and broaden the global brand value. The LEGO brand moved to third place in 2002/2003 with only Coca–cola and Kellogg having greater respect among families with children. Even though as the overall toy market faces challenges, LEGO's revenue and profits are increasing rapidly, especially since 2005. This profitability didn't change even in the current recession in the global market. The LEGO Group achieved record–breaking profits in ... Show more content on Helpwriting.net ... In addition to this restructuring, innovative management under new leadership began creating positive synergies in 2005. 1) Collaborating with Customer Communities In spring 2012, MIT Sloan Management Review had an article about the lessons from the LEGO Group, regarding collaborating with customer communities. The authors explained how the LEGO user communities emerged and how management's involvement with user groups has evolved and the core principles that LEGO has formulated for successful interaction with its user groups. This article let us explore the answer for an ongoing question to many organizations; how can companies collaborate effectively with their customers? By February 2012, there were more than 150 known user groups, with over 100,000 active adult fans worldwide. In 2005, LEGO created the Ambassador Program to provide a fast and direct way for the company and its pans to get into contract with each other. Representatives, drawn from across the community of LEO user groups, provide a fast and direct way for LEGO managers to get in contact with adult fans. The program has provided considerable value to both sides. Not only do fans inject energy and ideas, but in some cases they help refocus products. For example, after the innovative communication with one of the users who participated on the development team and was in the business ... Get more on HelpWriting.net ...
  • 64.
  • 65. Lego Group 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 of the value chain. Even though LEGO is a big brand, their profitability is not to be taken for granted. To answer the problem we used a history of LEGO, made a Value Chain, a SW–model and organization structure. There has been some significant ... Show more content on Helpwriting.net ... Knudstorp then realized that the problem did not lie with the product, but with the company's attempts in the 1990's to become a lifestyle brand with its own line of clothes and watches and they built more theme parks as well. By doing this, they started neglecting their core business: the LEGO brick. Value–Chain of LEGO: In March 2004, Knudstorp launched his dramatic turnaround plan: a mix of cost cutting, philosophical renewal and back–to–basics simplicity. This Action Plan was emphasizing three main themes: Set clear direction for the LEGO Group and fundamentally change the way they do business. Restore competitiveness by focusing on costumers, in particular their profitability. Reducing the level of risk by right sizing their activities, cost base and assets to a lower revenue base. Inbound logistics Lego has reduced significantly its number of plastic resin suppliers, and has signed longer term contracts which reduced and stabilized pricing, lowering costs and enabling better planning. Operations LEGO has rationalized production lines, reducing the number of products that could be made on each machine, adding simplicity and reducing changeover costs. It established more fixed production cycles, and better tied manufacturing to the rest of the supply chain. For example, it was no longer acceptable to make manual changes in a molding machine without ... Get more on HelpWriting.net ...
  • 66.
  • 67. Strategy Development At The Lego Group REGENTS UNIVERISTY LONDON GLOBAL STRATEGY CW1 Case Study (LEGO) Hissam Malik S00805291 LEGO GROUP Q1) Using appropriate concepts, models and frameworks, identify, assess and analyze the features of the external environment that have influenced strategy development at the LEGO Group. ANS: In 1932 Ole Kirk Christiansen founded LEGO in a village called Billund. Throughout the years a single family has run it. They initially became famous for making wooden toys and then went on to making the bricks and they further expanded their product line by making Lego video games and selling Lego merchandise. The name LEGO means 'play well' in Danish. LEGO is mostly known for the Lego brick, which has been their most important product , it was launched in 1958 and it has been named as the toy of the century. (Lego) They initially started with 10 employees and now they have more than 10,000 employees worldwide Lego has been a really successful company worldwide, and in this case study it has been shown that how they went through their growth stages and what strategies they implemented. LEGO group has been affected and influenced externally throughout due to a large number of factors. There are a few models and frameworks that can help us analyze the external environment and what exactly did Lego do according to the case. The first model is the Porters 5 forces model (Harper, 2013) Porters 5 forces includes: Threat of substitutes Bargaining
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  • 69.
  • 70. The Lego Group : An Organization Essay Our Organization: The LEGO Group was founded in 1932 and has come a long way in almost 80 years. With such global success in their brand, it was easy to choose an organization to interview that would provide us with the history and tools for analyzation of compensation plans. Below is the mission statement that can be found on the LEGO website: "The ambition of this Event Manager role is to upgrade event quality, establish comprehensive event concept, and support to establish event toolbox as key priority with strategic approach for the success of LEGO US". Currently, LEGO is one of the world's leading manufactures of play materials. The company is guided by the motto, "Only the best is good enough," committing to the development of children and aiming to inspire and develop the builders of tomorrow through creative play and learning. Valuing imagination, creativity, fun, caring, quality, and learning is what drives LEGO Group. By sticking to these values, LEGO holds themselves to the expectations that the people have towards the company and its products. In addition to their commitment to the builders of tomorrow, LEGO Group makes 4 promises. The first promise they make is to their partners. Building partnerships with their customers, suppliers, and intellectual property partners based on mutual value creation is fundamental. The second promise they make to their people, to enable execution of the business strategy and build the long–term health of the company. The ... Get more on HelpWriting.net ...
  • 71.
  • 72. Cross-Cultural Management 1. What are LEGO's values and corporate identity? How did these develop over time (prior to LEGO Media Int'l)? * The name LEGO in itself means "play well", the beginnings of the corporate identity were designed into the brand name * GKC was responsible for the stud and tube system, which is recognizable within the logo, as well as meant that all Lego blocks could fit together * In the 1970's, GCK designed the "ten lego characteristics" which today represents the guidelines for development and policy, and has become the foundation for current company values * The brand which was built is considered to be the most valuable assets which Lego possesses * The LEGO brand book establishes ways in which the values and ... Show more content on Helpwriting.net ... * It was difficult for the LEGO executives and the software base employees to find common ground in the beginning 3. Did Corporate HQ's cultural homogeneity influence LEGO' ability for cross–cultural management? If so, how? * The importance of the worldwide LEGO culture was stressed by management in 2005 and there was agreement that there was shared commitment and recognition of challenges in turning LEGO into a global brand organization * LEGO Land parks were developments which entailed setting up presence in countries outside Denmark; the company applied its philosophy of transferring its values but was careful to apply hands–off localization in a way that would not jeopardize the guidance of the company headquarters * Because of the homogeneity of Headquarters, LEGO realized that it would need to become proficient in cross–cultural management in order to continue to provide the guidance which insured the transfer of philosophy; LEGO regards the high concentration of Danish at HQ as a deterrent to creativity, essentially learning from their own weaknesses * LEGO placed a strong emphasis on fun to facilitate cross–cultural learning which was not an element of Danish culture, and thus, the majority of LEGO HQ; LEGO realized the U.K was responsible for integrating the element of fun into the products and the culture, something which the Danish would not have done otherwise * Ultimately, credit ... Get more on HelpWriting.net ...
  • 73.
  • 74. Disruption Case Study : Lego Disruption Case Study LEGO: Back to Bricks LEGO, as we know, is everywhere today. Not only in their classic, cuboid shapes, but also in video games, on the movie screen, on clothes, and in the formation of theme parks populating the globe. Within a world that is increasingly being surrounded by colorful, snappable bricks, it is hard to describe LEGO as anything other than a major success story. However, the brick road has not always been yellow for the Danish firm. Up against the volatile toy industry, LEGO has had their share of ups and downs, nearing bankruptcy in the early 2000s. One may say that LEGO has always been unique, but it was not until this pivotal low they they became disruptive in the way they operated as a brand. This ... Show more content on Helpwriting.net ... The company began to make rash initiatives in an attempt to transition their brand from that of a product, to one that embodied a lifestyle. Launching offshoot product lines, television series, and theme parks, LEGO began heavily investing in business model extensions that would quickly crash and burn. (Robertson & Hjulen) As a company, they lacked the expertise and validation to make these ideas work. Enter Jørgen Vig Knudstorp. In 2001, Knudstorp, a design thinker, joined the LEGO company as a consultant and was promoted to CEO after just three years. He understood the complexity of the market and how LEGO was inefficiently addressing those challenges. After meeting with several company stakeholders, Jørgen was able to understand that the LEGO brand and core product were the bread and butter of the company. Creating a messy ecosystem of disparate offerings and products forced LEGO to divide its attention to such a scale that they began to ignore their main customers, a common incumbent faux pas. (Billund) Knudstorp knew what to do. It was time to strip the company down to its core–a ubiquitous brick. (Ringen) Under his lead, the company would execute a multi–phase strategy to create a robust operational foundation that would serve as a platform for resilient innovation. As a response to demand–side disruption, LEGO began to pivot its organization to focusing on the creation of customer value. The company ... Get more on HelpWriting.net ...
  • 75.
  • 76. Case Study Of The LEGO Group Company Chosen: The LEGO group Corporate Social Responsibility (CSR) is defined as "a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders" ("Corporate Social Responsibility (Csr) Definition from Financial Times Lexicon", 2018). The LEGO group chooses to demonstrate their CSR to its stakeholders (children everywhere), by primarily focusing on how to make the world a better place for its junior citizens. Customers want to share with the world via social media or other methods the accomplishments of their children so having a CSR policy is an excellent strategy. Background A stalwart believer of its motto "Only the best is good enough", the LEGO group is a a privately held, family–owned company with headquarters in Billund, ... Show more content on Helpwriting.net ... Reasons vary from the benefits of CSR, the goodwill and marketing of the company and even as a method for increasing the company's profit margin (Thorpe, 2013). In some areas, there are significant cost savings affiliated with CSR. The LEGO group believes that all children have the right to enjoy safe toys while having fun and learning and while they admit that they do like making a profit, the company claims that innovating children is its best reward (Sandgaard Jensen, 2015). Allowing children from ages 3+ to build houses, bridges, vehicles and anything their little minds can think of, encourages them to expand their minds and envision future realities and technologies. Using environmental initiatives, LEGO is looking at ways to reduce the carbon emissions from the building of their toys and factories. While LEGO toys are said to last for generations, the company admits that its oil based materials is not sustainable and is looking at new ways to create long lasting toys from lower costing materials. Key Drivers of Corporate Social ... Get more on HelpWriting.net ...
  • 77.
  • 78. Sex Hormones And Its Effect On Gender Introduction. "Gender is complex" (Lippa, A R 1994) there are unlimited influences that affect each and every one of us as we develop as human beings; we are all unique models, shaped not only by our DNA but also by the physical and emotional environment in which we find ourselves including our biological genes, sex hormones and ongoing genetic and hormonal changes can be defined as 'nature' and influence physical development and sexual identity while family background, class and belief systems, described as 'nurture' affect gender through the encouragement of social norms and familiar gender roles. (Fausto–Sterling, A 2008) Away from the biological, peer group influences, such as school friends and their families also reinforce gender stereotypes while in the wider world mass media, from children 's TV to advertising campaigns, government guidelines on education and community structure and various external influences such as culture and religious beliefs, and according to Fausto–Sterling (2008) "all form the mannerisms of the individual and define 'gender'" In this paper I aim to use the examples of two well–known products to examine the way in which toy manufactures have impacted on this complex structure and to explore whether or not they exploit traditional stereotypes for better or worse. I will also be looking at reports from psychologists and sociologists to back up the views surrounding gender exploitations and the effects they may have on children. This is an ... Get more on HelpWriting.net ...
  • 79.
  • 80. Case Analysis Lego A The Crisis 1. From early 1990s to 2004, the Lego Group, a long successful toymaker with a world–renowned brand, fell into the edge of bankruptcy. Compared with the highest revenue in 1999, the revenue in 2014 decreased by 35.6% while the net profit was negative, seven times less than that in 1999, the lowest in the past ten years. Its net profit margin and ROE were also the lowest. The gross margin and inventory turnover were all lower than its competitors. The strategic moves in the two main periods "growth period that wasn't" (1993–1998) and the "fix that wasn't" (1999–2004) lead to its poor performance. External Analysis Substitutes: High. Fad toys, electronic products, videogames, online activities could easily be substitutes of Lego products. ... Show more content on Helpwriting.net ... The management shifted its strategy from steady organic growth and profitability into focusing on growth in 1993 and then tried to restore profitability and growth through "fitness program" and series of changes during the period of 1999 to 2004. The strategic actions deviated from some of the ten principles. The Lego Group tried to catch up the market trends during the period, but they ignored that the industry total profit pool decreased by 50% Between 1999 and 2003. It's naturally for players to reduce mass production and focus on core competency. However, the Lego Group invested significantly in expansion not only in brick–based product lines, but also beyond the brick. The expansion was not focusing on its core competency. Instability of the management, laying more stress on general leadership experience, and "fitness program" led to inefficiency and low moral/accountability among staff. Non–outsourcing and in–house expansion without cooperating with partners boosted expenses. Two retailing channels were too limited compared with competitors' diverse retail channels. More complex design conflicted with automated production line. It largely increased molding cost / production cost and caused an extremely low inventory turnover, much lower than its competitors. Major customers were frustrated by stock–out and slow–moving inventory. Currency fluctuations was also one of the main reasons for its unsatisfying performance. Therefore, the strategic ... Get more on HelpWriting.net ...