1. 1
COVENTRY UNIVERSITY
FACULTY OF BUSINESS, ENVRIONMENT AND SOCIETY
MASTER OF BUSINESS ADMINISTRATION
AUSM56 Entrepreneurship and Innovations
Case study: Lego group
STUDENT NAME : PRANAV SHAH
STUDENT ID NUMBER : 4841922
LECTURER : Chin Yong Low
DATE OF SUBMISSION : 17 May 2013

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Declaration of originality
This is to certify that the work is entirely my own and not of any other person, unless
explicitly acknowledged (including citation and referencing of published and unpublished
sources). The work has not previously been submitted in any form to the Coventry University
or to any other institution for assessment for any other purpose.
Signed _________________________________________________
Date ___________________________________________________

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Word Count
Number of Pages: 15
Number of Words: 2993
Word count is exclusive of the followings:
Cover Page
Heading and Sub-Heading
Citation and Referencing
Executive Summary
Conclusion
Appendix
Gantt Chant
Content Page

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Contents
1: Introduction ........................................................................................................................................5
1.1: Entrepreneur....................................................................................................................................5
1.1.1: Techno entrepreneur....................................................................................................................6
2.1: Goal..................................................................................................................................................7
2.2: People or Human: ............................................................................................................................7
2.3: Technical Factors: ............................................................................................................................7
2.4: Managerial Factor:...........................................................................................................................7
2.5: Size:..................................................................................................................................................8
3: The LEGO Group Strategy ...................................................................................................................8
3.1: Growth Strategy...............................................................................................................................8
3.2: Innovation Strategy..........................................................................................................................8
3.3: LEGO Strategic Risk Management ...................................................................................................9
4.1: The Creation and Development of Relationships:...........................................................................9
4.2: Identify...........................................................................................................................................10
4.3: Differentiate...................................................................................................................................10
4.4: Interact with different segment.....................................................................................................11
4.5: Customize.......................................................................................................................................11
4.6: Success and Barriers to Success.....................................................................................................11
4.7: CRM Advice:...................................................................................................................................12
5: Conclusion.........................................................................................................................................13
6: References: .......................................................................................................................................14

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1: Introduction
History ofLEGO Company Ole Kirk Christianses is owner of LEGO company .he was started
company in the years of 1932 with some employees .they stared making wooden toys in his workshop
in Billand from Denmark. Company first time used LEGO name in the year of 1934. LOGO is Danish
world „leg Gogt‟ it means „play well‟. Plastics available at the end of second world wall in
Denmark.at that time Ole Kirk buy a new plastic injection machine in the year of 1947,after a two
years Kristiansen developed new idea to make plastics bricks after that company moves to wooden
to plastics for longer period ,LEGO made new idea a global brand.(LEGO.com,2012)
In the year of 2000 LEGO was change with name “ Toy of the Century” by world best magazine
fortune moreover British toy retail association as per that views LEGO is best toys innovative
company in the world. Now days LEGO small kits can be connect and assemble with various ways, to
construct with different objectives like building different vehicles and working with robots.
(LEGO.com,2012)
1.1: Entrepreneur
Company main objective and philosophy is “GOOD PLAY” in child‟s life. The LEGO Company
within the direction of mind they developed wide range of product in a world market and company
main philosophy of learning and knowledge developed through play. (LEGO.com, 2012)
Company main motto for giving best good and main importance of high quality product throughout
the LEGO history and give consumer retain to company different products services again and again.
And company started Lego systems it means children make many buildings easy to build innumerable
ways. Children is one the most important things to change the world scenario and Lego also doing
same thing with developed new product line base on company research with children and their
parents to like to play habits, and Lego useful for education and increase learning ability for solve
future problems and it was really useful for future child . AndLego always mentions with schools
and institution throughout the world.(LEGO.com, 2012)

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1.1.1: Techno entrepreneur
Lego company introduce fist times Lego wheels in the years of 1961 and 1962, and company also
developed new product like building Cars, truck and different vehicles from use Lego bricks.
Moreover company introduce specifically toys for pre-school student.(Pal Burns , 2008)
Lego introduce Lego system of play it means that is a fist Play and learn concept in the world .it is
really useful to learning through play. And after some time company introduce another revolutionary
in toys.(Pal Burns , 2008)
In the years of 1958 company lance new bricks it mince new interlocking system in plastics
bricks.1978 company introduce Lego space sets ,rockets and astronaut sets these all are successful
series in Lego company. (Pal Burns , 2008)
“Outside in” it means company started to use outside the company brainpower for use innovation of
product and services. And company things another types of ideas its rally use full to understand
competitor‟s technology and developed own ideas and technologies.(Pal Burns , 2008)
Lego introduce “Blue Ocean” that is understand to make a toddlers with electronics toys like music
and stories and company also create Galidor toys for older child, which introduce electronics games
in different Lego toys.(Pal Burns , 2008)
Ans2: Organisation characteristics useful to innovation process
Theory of Contingency believe that cooperative network is part of organisation and that network all
function essentials bound together of common goal. So every aspect if most important to success of
the organisation, and each element must be set up within the organisation.in other word appropriate
balance must be important in organisation. (Donaldson, 2001).
As per the Jackson (2000) point of there are five Strategic contingencies that affect the organisation
structure.
 Goals
 People
 Technical factors
 Managerial factors
 Size

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2.1: Goal
Company goal is most impotent part to survive the organisation both types of goal long term or
short term strategic as well as operational objective. That goal really useful to need the e ambition
of the all stakeholder that creates a decision making structure. Logo Company also doing
samething to set a fist goal and then company created strategies for the basis of innovation of
different techniques. (Jackson2000)
2.2: People or Human:
General publics are really concerned with increasing needs of the employees in the company and all
needs must be satisfy in the organisation after that they motivate and attracted for the company work.
Basically organisation design must take capability and need of the organisation staff. LOGO
company constantly focus on staff needs and fulfil that needs and finally achieve the company
employees satisfaction is may be compulsory in LEGO. (Jackson2000)
2.3: Technical Factors:
Technology is really useful to carrying all types of work in any organisation. Benchmarking is most
important task for specific industries and utilized the structure of successful for any firms. And LEGO
Company use different technology to provide best services of the customers, LEGO use technology in
department like online store, retail store and different education institution marketing offering. Lego
create online playing to keep all customers with many products in Logo business. (Jackson2000)
2.4: Managerial Factor:
Managerial role is important part for activities on any organisation. As per the current information
management is big respond for effective organisation.it can be useful in planning production,
staffing,directing andcontrolling fordifferent department oforganisation.Lego also doing four
different format for to help of different team based structure to achieve innovation in Lego
company . (Jackson2000)

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2.5: Size:
Different organisation different size .organisation size is depend on two aspect fist horizontal aspect
and second vertical aspect both structure are different.as per horizontal point of increasing the size
of employees it means who company started stand idle point and hold with different task
implementation of different employees. And vertical line is increasing size of controlling
management is become too large and performance object. So that‟s why company new level
introduction is important which is make sure the company result (Donaldson,2001).Lego company
use vertical line when the company near for bankruptcy .at that time company divide innovation
effect in different 8 types . After thatLego company using vertical structure company solve the
problems and stable position in market place.(Donaldson,2001)
3: The LEGO Group Strategy
Logo always risktaking so they maintain strategic risk management.so company need to understand of
strategy. So Lego is really useful to reduce risk when they take strategic risk assessment process (see
Mark L. Frigo and Richard J. Anderson, “Strategic Risk Assessment,” Strategic Finance, December
2009). And “Inspire and develop the builders of tomorrow” this mission of Lego company and
“Investing the future of play” that is vision of Lego company. For the help of that Lego use growth
strategy and innovation strategy (Mark, 2009).
3.1: Growth Strategy
Number of growth drivers is important point as per that view company select the growth strategy.
Whenever Lego market share price increasing in USA many people think Lego product increasing in
market but they not buy more than Germans .per example Lego have many opportunity to increase the
growth in US market .and Eastern Europe is also best place to Lego increase the market share and
now a day toys market increasing very fast in all over the Europe and USA. Apart from that Lego
wants to invest in developing market.so toys market in not fist market to invest many in Emerging
market that why Lego ready to invest in appropriate place like Lego started direct consumer activity
itmince Lego move own Lego store for retail selling and start online selling and many activity like
Online Game and online developed own product and design. (Mark, 2009).
3.2: Innovation Strategy
On the product sideways, Lego always doing new creativity and innovation on different product and
Lego try to develop a new concept on that product. Lego company constantly comes up with different
plan with different product in every two to four years.as per company latest example is Lego started
Lego Games systems that is family board games this is a new ways to playing with Lego bricks that
means company change attitude towards the customer point of. Lego also expand the Lego education,
it mince that company work with school and institution. And Lego will develop digital business in
emerging market that is totally change physical world. Because digital world is not clear picture for
small children and it is not appropriate for kids.so let‟s see which are the developing new things in
future.(Mark, 2009).

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3.3: LEGO Strategic Risk Management
Lego is risk Taker Company in toys industries all over the world so company takes four steps.
Step 1: traditional ERM is part of Enterprise risk management that can be explain financial risk and
operational and other risk are complimented with risk taking management.
Step 2:
Monte Carlo Simulationswere added tounderstand the financial performance volatility (whichproved
to be significant) and the drivers behind it to integrate risk management into the budgeting and
reportingprocesses. (Jonathan, 2012)
Financial performance stability understand by Monte Carlo simulation that proved significant driver
behind the assimilate of risk management in process of reporting and budgeting those two process are
generally “damage control” is giving the information about risk awareness in future prospective of
Lego company. (Jonathan, 2012)
Step 3:
Lego have AROP (Active risk and Opportunity Planning) that system help for business project go
with systematic risk opportunity process as per the part of company preparing business case before
final project made. (LEGO.com, 2013)
Step 4:
Lego always prepare future point of because future is uncertainty and Lego management also
developed long terms strategies because that is relevant for the company. (Jonathan, 2012)
Ans: 4
This information gives detail about how LEGO group focus on and cooperate with different customer
and Lego develop future new product and services as per customer needs and preferencesand product
interest. Lego is best example for internet users Lego.com is fist online company for family as well as
children website, to undertake the success of create an online environment for specific group of
people. (LEGO.com, 2013)
4.1: The Creation and Development of Relationships:
Lego create a relationship with complex process because Lego approach is moreabstract and less
straight forward then it has been. Lego manager need to change company intention and environment
ofas well as culturally .mobility is important thing to change the awareness of product, in Lego case
as per children interests through video Games and development different idea in Lego Company.
The model represent the information about relationship with customer oriented company ,that can
be divided in Analysis and Action part and that will be used in Lego company so company best think
to develop and maintain the trust of customers.

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4.2: Identify
Lego is different sense for business like BtoB sales and Business to customers that makes company
identification in the market. Lego started direct connect to consumers with LEGO group and own
supply chain andcollaboration channel and Lego land. But the Lego main thinks to increasing direct
contact with consumers. And moreover Lego started collaboration with company partners consumers,
so Lego will be ensure the quality control and that gives feedback on the marketing effect .Health
check also helps the Lego .company define benefits of relationship with external sales
channels.(LEGO.com, 2013)
Lego developed new thinks like company recently investmentin SAP system that gives the
information about consumers track ,and company divided consumer in 4 different group that
mention in next step for different product promotion and discount and many offers.(Technology
evaluation.com.2012 )
- Lego participation in social network like Facebook, twitter
Lego create online environment (Lego.com)
Lego provide online discussion about product as well as company information weather is positive or
negative .Lego centralise all detail on one department with direct contact of customer like customer
services and many more.
LEGO Universe
Lego launched LEGO universe in the year of 2010 that is the first online multiplayer in Lego group
.they create digital imagination in Lego games and also digitalise in building structure .and players
create own stories and world in virtual place space. (Lego.com)
4.3: Differentiate
Lego always provide best service for Lego customers and they always try to developed better services
provider likely Lego start use SAP system that makes specific offers for target customer group .they
create four group .(Lego.com.2012)
Lego focus on main users of product: small children and adults both are more interested and mostly
engaged with Lego online games and Lego communities.
SAP has several features that LEGO benefit from such as:
SAP gives many features for Lego benefit like SAP gives loyalty for management software so that
company integrate with ERP and CRM that ensure the reward of level of engagement with the
company brand(Technology evaluation.com.2012 ).

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4.4: Interact with different segment
Lego SAP system is totally target on different segment and Lego directly contact with customer
because of Centralisation department and making personal interact with consumer.
Lego always contact with consumers based product and specific quality under the SAP systems and
Lego also mention other interaction with different channels like.
Lego.com create environment of Online Games and different profiles.
Lego create a Universe that analyse of consumer behaviour.
Lego Company analyse the YouTube video and comments.
Lego start new innovation like Design by me that is creative work to understand what company wants
or not.
Lego participate in social media like they lance magazine and crate fun club and Lego group.
Lego start face to face meeting with customers and talk with company employees. And start
discussion on online and Blocks forms.
Lego most important things theyalways protect children‟s information about Lego product and
company present through Lego channels which that company already stared in Lego parent website.
4.5: Customize
SAP is totally base on VIP systems, that mince consumers can make custom made suggestions when
consumer login in Lego website. That is a ways to represent the customer loyalty (Lauren Gibbons
2011).
As per the member of Lego Club Company gate many advantages such as many events like
LEGOLAND and company store moreover more information about new product thought Lego club
magazine base on different Age.(Lego.com,2012)
Lego creative successful because many types of cross channel in Lego interaction like:
Lego introduce different membership cards and coupons for generating growth as a different targeted
audience. And CRM systems it present clear case of customization of product it mince Lego design by
me, company allow customers to design own product. These services not only satisfy the customers
but also understand about customer preference. So these types of information are useful to design
Company future goal.(Lego.com,2012)
4.6: Success and Barriers to Success
Some information about observer‟s point of Lego group had over diversified forcompany product line
Lego moves to theme park. Other blamed that expanding popularity of video games because of low
cost production in china. (Lego.com)

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Lego diversification make CRM way to more complex than company could have with many product
.and company face struggle in earlier time .but change of Lego at last couple of years by the way of
company improve the supply chain and try to reduce number of logistics providers .and company
allowed to work with external distributors.(Techchnologyevaluation.com.2012 )
Lego focus on online create environment, online games, blogs, social media after use Lego prove to
be successful company in toys industries .Lego also experienced health growth during the
implementation. But if company can improve customer identification and knowledge with external
distribution channel and CRM really need to improve more. Now a day Lego CRM strategy is
weakest point.(Technologyevaluation.com.2012 )
4.7: Recommendation for CRM Advice:
There is no hesitation that Lego has totally change environment as compare past years but company
future is very high competition so many challenges in future that Lego face like and some advice that
really useful for future goal.(Technologyevaluation.com.2012)
Do not diversify products further, if it affects CRM negatively.
Company try to increase the trust with customers and build reliability and intimacy with contact to
Lego customers. (Technology evaluation.com.2012 )
Lego develop the system to handle customer identification and interact through external distribution
channels.(Technology evaluation.com.2012 )
Trust is most important factors with Lego and customers relationship. Lego should more concentrate
on online computer environment for kids and Lego try to developed children identification and child
protection.(Technologyevaluation.com.2012)
Lego keep concentrate to developed internet opportunities that could be great impact of future
development and Lego also concentrate consumer supply chain and future product and services.
Lego never forget of product, Lego bricks expanding the business online business environment that
main part of heart and passion of the Lego Company. (Technologyevaluation.com.2012)

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5: Conclusion
For the high competition market information more saturated in the organisation environment .that is
more important to try to maintain dynamic culture and improve the organisation. David Gain of
Harvard University of writer explains to “constantly improvement requires a commitment to
learning”. (LEGO.com, 2012)
Lego change tradition path of the company, company change structure of services and industries plate
form .Lego design the online games and also entered in the software base market and also enter with
online service sector. Lego also represent children amusement park like LEGOLAND and
Disneyland. And company concentrate on new innovation and services that provide with customers.
Lego always believe in company mission statement only the best quality good and best expertise in
toys making field. Lego give strong satisfaction about corporate as well as social responsibility
through give children and give opportunity to learn when they are playing. Lego increase their
efficiency of think about new invention and generate the ideas and knowledge, as per children is
future of country.(LEGO.com, 2012)

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6: References:
Trott, Paul, 2012. Innovation management and new product development. 5th ed. England:
Pearson education limited.
LEGO.com. 2012. LEGO History Timeline. [ONLINE] Available
at: http://aboutus.lego.com/en/lego-group/the_lego_history/. [Accessed 03 May 13].
wearedevelopment.net. 2012. LEGO’s Approach to Customer-orientation. [ONLINE]
Available at:http://wearedevelopment.net/2012/07/11/legos-approach-to-customer-
orientation/. [Accessed 10 April 13].
Mazzarol, Tim, 2011. Entrepreneurship and Innovation 2nd ed. Australia: Prahran, Vic.:
Tilde University Press, 2011.
Donaldson, Lax, 2001. The Contingency Theory of organisation. 1st ed. California: SAGA
publication.
Mark L. Frigo and Richard J. Anderson, 2009“Strategic Risk Assessment,”1st
ed Strategic
Finance,UK
Reuvid, Jonathan, 2012. Managing business Risk. 9th ed. uk: Kogan Page
Burns, macmillan, Pal Burns , 2008. Corporate Entrepreneurship. 2nd ed. New York:
Palgrave macmillan.
Techchnologyevaluation.com.2012 Relationship management [ONLINE] Available at:
http://relationship-management.technologyevaluation.com/search/for/crm-lego.html
[Accessed 17 May 13]