LEGO is a toy manufacturing company established in 1932 in Denmark that is best known for its plastic interlocking bricks. Over the decades it has expanded its product lines, opened LEGOLAND theme parks, and become a global brand. More recently, LEGO has focused on innovative strategies, a focused marketing approach, and improving consumer service to address issues like late and damaged deliveries. It continues working to meet demand through increased production and implementing new ideas to expand into unexplored areas.
Comm. 450 - Advertising & Brand Communication Management
CSUF Spring 2017
Final Project
The purpose of this team project was to apply the knowledge we had acquired and implement it to a real brand. The audit consists of four sections: 1) Background 2) Brand Inventory 3) Brand Exploratory, and 4) Strategic Recommendations.
Comm. 450 - Advertising & Brand Communication Management
CSUF Spring 2017
Final Project
The purpose of this team project was to apply the knowledge we had acquired and implement it to a real brand. The audit consists of four sections: 1) Background 2) Brand Inventory 3) Brand Exploratory, and 4) Strategic Recommendations.
The Lego case study, the great turnaround 2003 - 2013John Ashcroft
In presenting his report to management in June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no punches, “We are on a burning platform, losing money with negative cash flow and a real risk of debt default which could lead to a break up of the company. In 2013, LEGO reported profits of $1.5 bn on sales of $4.5 bn. Quite a turnaround! Here's how.
Case 12 LEGO Group An Outsourcing JourneyMarcus Møller Larsen.docxwendolynhalbert
Case 12: LEGO Group: An Outsourcing Journey
Marcus Møller Larsen
Torben Pedersen
Dmitrij Slepniov
PROLOGUE
1The last five years’ rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world—the LEGO Group—the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in the company’s roughly 70 years of existence, resulting in a deficit of DKK1.8 billion in 2004, the management had, among many initiatives, decided to offshore and outsource a major chunk of LEGO’s production to Flextronics, a large Singaporean electronics manufacturing services (EMS) provider. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production, besides closing down major parts of the production in high-cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. “It has been important for us to find the right partner,” argued Niels Duedahl, a LEGO vice-president, when announcing the outsourcing collaboration, “and Flextronics is a very professional player in the market with industry-leading plastics capabilities, the right capacity and resources in terms of molding, assembly, packaging and distribution. We know this from looking at the work Flextronics does for other global companies.”1
2This decision would eventually prove to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. In July 2008, the executive vice-president for the global supply chain, Iqbal Padda, proclaimed in an official press release, “We have had an intensive and very valuable cooperation with Flextronics on the relocation of major parts of our production. As expected, this transition has been complicated, but throughout the process we have maintained our high quality level. Jointly we have now come to the conclusion that it is more optimal for the LEGO Group to manage the global manufacturing setup ourselves. With this decision the LEGO supply chain will be developed faster through going for the best, leanest and highest quality solution at all times.”2
PhD Fellow Marcus Møller Larsen, Professor Torben Pedersen and Assistant Professor Dmitrij Slepniov wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ive ...
The Lego case study, the great turnaround 2003 - 2013John Ashcroft
In presenting his report to management in June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no punches, “We are on a burning platform, losing money with negative cash flow and a real risk of debt default which could lead to a break up of the company. In 2013, LEGO reported profits of $1.5 bn on sales of $4.5 bn. Quite a turnaround! Here's how.
Case 12 LEGO Group An Outsourcing JourneyMarcus Møller Larsen.docxwendolynhalbert
Case 12: LEGO Group: An Outsourcing Journey
Marcus Møller Larsen
Torben Pedersen
Dmitrij Slepniov
PROLOGUE
1The last five years’ rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world—the LEGO Group—the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in the company’s roughly 70 years of existence, resulting in a deficit of DKK1.8 billion in 2004, the management had, among many initiatives, decided to offshore and outsource a major chunk of LEGO’s production to Flextronics, a large Singaporean electronics manufacturing services (EMS) provider. In this pursuit of rapid cost-cutting sourcing advantages, the LEGO Group planned to license out as much as 80 per cent of its production, besides closing down major parts of the production in high-cost countries. Confident with the prospects of the new partnership, the company signed a long-term contract with Flextronics. “It has been important for us to find the right partner,” argued Niels Duedahl, a LEGO vice-president, when announcing the outsourcing collaboration, “and Flextronics is a very professional player in the market with industry-leading plastics capabilities, the right capacity and resources in terms of molding, assembly, packaging and distribution. We know this from looking at the work Flextronics does for other global companies.”1
2This decision would eventually prove to have been too hasty, however. Merely three years after the contracts were signed, LEGO management announced that it would phase out the entire sourcing collaboration with Flextronics. In July 2008, the executive vice-president for the global supply chain, Iqbal Padda, proclaimed in an official press release, “We have had an intensive and very valuable cooperation with Flextronics on the relocation of major parts of our production. As expected, this transition has been complicated, but throughout the process we have maintained our high quality level. Jointly we have now come to the conclusion that it is more optimal for the LEGO Group to manage the global manufacturing setup ourselves. With this decision the LEGO supply chain will be developed faster through going for the best, leanest and highest quality solution at all times.”2
PhD Fellow Marcus Møller Larsen, Professor Torben Pedersen and Assistant Professor Dmitrij Slepniov wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ive ...
“We are on a burning platform,” Lego’s CEO Jørgen Vig Knudstorp told colleagues. “We’re
running out of cash… [and] likely won’t survive”
But Lego’s CEO Jørgen Vig Knudstorp was able to create a ‘comeback story’ and achieved profits
of £660M, making it the number one toy company in Europe and Asia, and number three in
North America, where sales topped $1BN for the first time. From 2008 to 2010 its profits
quadrupled, outstripping Apple’s. Indeed, it has been called the Apple of toys: a profitgenerating, design-driven miracle built around premium, intuitive, covetable hardware that fans
cannot get enough.
Case 12 LEGO Group An Outsourcing Journey Marcus Møller.docxwendolynhalbert
Case 12: LEGO Group: An Outsourcing Journey
Marcus Møller Larsen
Torben Pedersen
Dmitrij Slepniov
PROLOGUE
1 The last five years’ rather adventurous journey from 2004 to 2009 had taught the fifth-
largest toy-maker in the world—the LEGO Group—the importance of managing the global
supply chain effectively. In order to survive the largest internal financial crisis in the
company’s roughly 70 years of existence, resulting in a deficit of DKK1.8 billion in 2004,
the management had, among many initiatives, decided to offshore and outsource a major
chunk of LEGO’s production to Flextronics, a large Singaporean electronics manufacturing
services (EMS) provider. In this pursuit of rapid cost-cutting sourcing advantages, the
LEGO Group planned to license out as much as 80 per cent of its production, besides
closing down major parts of the production in high-cost countries. Confident with the
prospects of the new partnership, the company signed a long-term contract with
Flextronics. “It has been important for us to find the right partner,” argued Niels Duedahl, a
LEGO vice-president, when announcing the outsourcing collaboration, “and Flextronics is
a very professional player in the market with industry-leading plastics capabilities, the right
capacity and resources in terms of molding, assembly, packaging and distribution. We
know this from looking at the work Flextronics does for other global companies.”1
2 This decision would eventually prove to have been too hasty, however. Merely three
years after the contracts were signed, LEGO management announced that it would phase
out the entire sourcing collaboration with Flextronics. In July 2008, the executive vice-
president for the global supply chain, Iqbal Padda, proclaimed in an official press release,
“We have had an intensive and very valuable cooperation with Flextronics on the
relocation of major parts of our production. As expected, this transition has been
complicated, but throughout the process we have maintained our high quality level. Jointly
we have now come to the conclusion that it is more optimal for the LEGO Group to
manage the global manufacturing setup ourselves. With this decision the LEGO supply
chain will be developed faster through going for the best, leanest and highest quality
solution at all times.”2
PhD Fellow
Marcus Møller Larsen, Professor Torben Pedersen and Assistant Professor Dmitrij
Slepniov wrote this case solely to provide material for class discussion. The authors do not
intend to illustrate either effective or ineffective handling of a managerial situation. The
authors may have disguised certain names and other identifying information to protect
confidentiality.
Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or
transmission without its written permission. Reproduction of this material is not covered
under authorization by any reproduction rights orga ...
Is LEGO Ideas a good role model for crowdsourcing in the toy industry?Ville Kilkku
LEGO Ideas has been a pioneer of crowdsourcing in the toy industry. Is it still at the top? Is it doing things right?
A video of the presentation is available on Youtube at https://youtu.be/HhYIzN8u_bM
The presentation is based on my blog post "Crowdsourcing in the toy industry: LEGO Ideas" http://www.kilkku.com/blog/2015/07/crowdsourcing-in-the-toy-industry-lego-ideas/
Juan Carlos Garcia, Dir., Global eCommerce & Omnichannel, Grupo Elektra; David Marcotte, SVP, Strategic Advisory Services, Kantar Retail, WPP; Marti Urrutia Islas, Head of Retail Innovation, Retail Experiences, The Lego Group
In this talk, we introduce the Disciplined Entrepreneurship framework as well as the DE canvas. We end with a challenge to the founding team: "Why are you in business?"
In presenting his report to management in June 2003, Jørgen Vig Knudstorp, then head of strategic development had pulled no punches, “We are on a burning platform, losing money with negative cash flow and a real risk of debt default which could lead to a break up of the company. In 2013, LEGO reported profits of $1.5 bn on sales of $4.5 bn. Quite a turnaround! Here's how.
Suggests a way for creating and verifying business model which is essential for businessman by workshop using LEGO® SERIOUS PLAY® methodologies to express a variety of nonverbal aspects and Workshop using business model canvas to represent business models in a structured way.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
3. INTRODUCTION
• Toy manufacturing company
• Established in 1932 by ole
Christiansen
• The LEGO Group is owned by
KIRKBI A/S (75 percent) and
the LEGO Foundation (25
percent).
4. 1932
• Ole Kirk Christiansen started
business with few employees
1934 • LEGO name was first used
1949
• Ole’s son used new
material to create four
and eight stud building
bricks
1999
• LEGO
opened
128 acres
theme park
in carsbad
LEGO HISTORY
5. Lego product
LEGO PRIMO
• For birth to 36
month
• 37 different set
of toys
• Baby toys,
mobility toys
LEGO
DUPLIO
• 18 months to
six year age
• Basic LEGO set
includes
Different
products to be
combines with
each other
LEGO SCALA
AND LEGO
BELVILLE
• Especially for the
needs of girls
• LEGO BELVILLE
encourage girls to
enjoy range of
horse riding,
beach and other
themes
LEGO
SYSTEM
• Designed for
specific needs
of boys
• Includes 157
different set.
6. LEGO SWOT ANALYSIS
Famous brand,
strong name.
Education centers in
the world.
Playful learning
Reputation of brand
and customers.
STRENGTH
7. Lack of coordinating
between production
and demand
Low-tech
constriction sets
Distance from top to
bottom
Lack in management
system
WEAKNESS
11. Organization Strategy
• Innovative Strategy :LEGO is synonymous with
innovation in corporate circles.
• But innovation is something that has need to be changed
every few years.
• Famous for its plastic, interlocking toy blocks, the
company was started back in 1932 in Denmark, and has
been known for its spirit of innovation.
• In a recent interview published in Knowledge professor
David Robertson, author of Brick by Brick: How LEGO
Rewrote the Rules of Innovation and Conquered the Global
Toy Industry describes how LEGO shook off a period of
stagnation and became a model for innovation again.
12. Focus Strategy
• Lego has been at the forefront of user engagement
for years but it has not always been plain sailing.
A focused marketing strategic direction enabling
decisions on how to strengthen and grow the
business unit
• Significant internal efficiencies, saving time and
effort on a daily basis
• Better use of analytics and reporting yielding
improved visibility to ROI
• Increase in all business and marketing scores
• More coherent execution in the market.
13. Consumer service Strategy
One of the issues Lego had to address was customers’
dissatisfaction with delivery orders. “The packages
that were ordered through our direct channel were
arriving late or damaged,” said Peggy Conley, Director
of Consumer Insights at Lego Group. “It was only a
small percentage of them but we needed to quantify
what was happening.”
Become A Content Marketer : The Lego Group also has
extended its brand by developing multimedia content,
in collaboration with other well-known brands such
as Star Wars and Cartoon Network
14. • Supplementing its traditional lines with wide
variety of high technology play offerings
• Increase the production of LEGO toys to meet
the demand of it.
• implement new ideas and expand the LEGO
concept into unexplored areas
• There is a few toys of Lego for the girls they
need to produce more toys for girsl
RECOMANDATION
