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Case 12 LEGO Group An Outsourcing JourneyMarcus Møller Larsen.docx
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 ...
First Lego League - Dalmilling Primary
Presentation explaining the First Lego League project at Dalmilling Primary School.
Running head Strategy and Positioning Analysis Lego Boost1.docx
Running head: Strategy and Positioning Analysis Lego Boost
1
Strategy and Positioning Analysis Lego Boost
8
Strategy and Positioning Analysis Lego Boost
Darryl Tungate, Chris Carey, Marcus Shoals, Brandon Lee
MKT/421
March 20, 2017
Danny RudickLEGO BOOST
Overview of Organization
In 1932, Ole Kirk Christansen developed a master carpenter shop in Billund, Denmark which went on to create and introduce Lego in 1958 (Rosenberg, 2014). Now Lego has become a household name and holds a worth of nearly $15 Billion! Legos are not just for kids. Lego bricks come in all shapes, sizes, and looks. Themed Lego pieces include Star Wars, Star Trek, and other famous movies. There are groups, collector meetings and even a BrickCon in Seattle. Lego has certainly reached all parts of our globe and many kids and adults continue to play with them today. Lego is the leader in such bricks and all who have tried to keep up have failed. Lego is so popular that sales jumped 13% in 2015 after the release of their first movie (Kell, 2016). The Lego industry is booming and with more and more products developing, it is no wonder they have the sales they do. Lego boost is designed to teach kids how to program Lego robots with an application on their smart device.
Description of Product
Lego has really started an evolution within their product ring. They have taken Lego bricks that can be designed in many different ways, added them to a six axis drive, and allowable to be programmed from a tablet. This is the Lego Boost. For $160 you get the full starter kit which includes 840 bricks, the axis drive, and 5 character designs. This is a way to really get children using their thinking caps and allow them to interact with Lego on another level. One character is named Vernie. Vernie is the first bot that anyone should build. A friendly, talkative, and interactive guy that moves his head and has a sense of humor. You start with the head so he can begin to talk to you as you build. The really important part of this is the coding. Within the app the user, player, student, or child can program the different robot models into doing different things. The Guitar 4000 lets you play your own music. The best part about the entire thing is that all Lego bricks can interact with this set. So you can take your Star Wars Lego set and program it to do many things. What will you build?
SWOT Analysis
Strengths
· Introduces young children to the basics of programming and coding
· Allows kids to build a variety of robots that can respond to stimuli
· Communicates with a smartphone or tablet running the Boost app
· Cheaper than Lego Mindstorms the company's flagship robotics platform
Weaknesses
· Targets younger users ages 7 and up
· Retails at $159.99 a little pricey for most people
· Could be too advance for some kids
· Require a smart phone or tablet
Opportunities
· Prepare younger generation for Lego Mindstorms
· Engineering advancements for young people
· To combines le ...
Case 12 LEGO Group An Outsourcing Journey Marcus Møller.docx
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 ...
Principles of marketing
Lego is the toy making company which was introduced in 1932 in DENMARK. In 1934,company came to be called ‘LEGO” from the Danish phrase “LEG GODT” which means play well . This Danish company was registered in 1958 though it had been manufacturing blocks since 1932.
and also in macro and micro environment
Lego made for Kids
Nowadays we are talking a lot about collaborative workspace and the less importance of having a formal office to develop good group work. This is an example of that. Lego Made for Kids was my first Hyper Island task that 80% was made with online meetings and follow ups.For the first part of the project the group was spread around 3 different continentes and 6 different countries.
With the help of free tools and google Docs and Skype I realized that being physically at the same place can help, but the most important thing was actually feeling part of the group. Having everyone at the same page, agreeing with our rules, happy with our culture and working for a common gol everyone agreed with was what made this project so great.
Hope you guys enjoy as much as I liked the experience.
Luxury car center the cube thesis book
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Lego Final Audit Book
Comm. 450 - Advertising & Brand Communication Management
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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.
Case 12 LEGO Group An Outsourcing JourneyMarcus Møller Larsen.docx
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 ...
First Lego League - Dalmilling Primary
Presentation explaining the First Lego League project at Dalmilling Primary School.
Running head Strategy and Positioning Analysis Lego Boost1.docx
Running head: Strategy and Positioning Analysis Lego Boost
1
Strategy and Positioning Analysis Lego Boost
8
Strategy and Positioning Analysis Lego Boost
Darryl Tungate, Chris Carey, Marcus Shoals, Brandon Lee
MKT/421
March 20, 2017
Danny RudickLEGO BOOST
Overview of Organization
In 1932, Ole Kirk Christansen developed a master carpenter shop in Billund, Denmark which went on to create and introduce Lego in 1958 (Rosenberg, 2014). Now Lego has become a household name and holds a worth of nearly $15 Billion! Legos are not just for kids. Lego bricks come in all shapes, sizes, and looks. Themed Lego pieces include Star Wars, Star Trek, and other famous movies. There are groups, collector meetings and even a BrickCon in Seattle. Lego has certainly reached all parts of our globe and many kids and adults continue to play with them today. Lego is the leader in such bricks and all who have tried to keep up have failed. Lego is so popular that sales jumped 13% in 2015 after the release of their first movie (Kell, 2016). The Lego industry is booming and with more and more products developing, it is no wonder they have the sales they do. Lego boost is designed to teach kids how to program Lego robots with an application on their smart device.
Description of Product
Lego has really started an evolution within their product ring. They have taken Lego bricks that can be designed in many different ways, added them to a six axis drive, and allowable to be programmed from a tablet. This is the Lego Boost. For $160 you get the full starter kit which includes 840 bricks, the axis drive, and 5 character designs. This is a way to really get children using their thinking caps and allow them to interact with Lego on another level. One character is named Vernie. Vernie is the first bot that anyone should build. A friendly, talkative, and interactive guy that moves his head and has a sense of humor. You start with the head so he can begin to talk to you as you build. The really important part of this is the coding. Within the app the user, player, student, or child can program the different robot models into doing different things. The Guitar 4000 lets you play your own music. The best part about the entire thing is that all Lego bricks can interact with this set. So you can take your Star Wars Lego set and program it to do many things. What will you build?
SWOT Analysis
Strengths
· Introduces young children to the basics of programming and coding
· Allows kids to build a variety of robots that can respond to stimuli
· Communicates with a smartphone or tablet running the Boost app
· Cheaper than Lego Mindstorms the company's flagship robotics platform
Weaknesses
· Targets younger users ages 7 and up
· Retails at $159.99 a little pricey for most people
· Could be too advance for some kids
· Require a smart phone or tablet
Opportunities
· Prepare younger generation for Lego Mindstorms
· Engineering advancements for young people
· To combines le ...
Case 12 LEGO Group An Outsourcing Journey Marcus Møller.docx
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 ...
Principles of marketing
Lego is the toy making company which was introduced in 1932 in DENMARK. In 1934,company came to be called ‘LEGO” from the Danish phrase “LEG GODT” which means play well . This Danish company was registered in 1958 though it had been manufacturing blocks since 1932.
and also in macro and micro environment
Lego made for Kids
Nowadays we are talking a lot about collaborative workspace and the less importance of having a formal office to develop good group work. This is an example of that. Lego Made for Kids was my first Hyper Island task that 80% was made with online meetings and follow ups.For the first part of the project the group was spread around 3 different continentes and 6 different countries.
With the help of free tools and google Docs and Skype I realized that being physically at the same place can help, but the most important thing was actually feeling part of the group. Having everyone at the same page, agreeing with our rules, happy with our culture and working for a common gol everyone agreed with was what made this project so great.
Hope you guys enjoy as much as I liked the experience.
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- 2. Lego was founded in Denmark, which has a 78-year development history
- 4. In 1949, the first piece of plastic Lego bricks come out.
- 7. AGE RANGE Age Range: 0-2 Age Range: 3-4 Age Range: 5-6 Age Range: 7-8 Age Range: 9-11 Age Range: 12+
- 8. Lego has different products (toys and games ) Train Sets Air planes Cars Ships Cities And many other toys
- 9. Age range : 0-2 LEGO ’s toys are designed to help kids to: Build their skills Learn to count Develop Imagination Discover their creativity
- 10. Age range : 3-4 LEGO can help your little ones create new worlds : Inspire creativity Building imagination Grow important skills Improving dexterity
- 14. • Ensuring a safe and healthy working environment means establish a working environment with a strong safety culture and no injuries in order to strengthen the possible progression have observed in recent years ,we continue to advocate for and apply a progress
- 16. • A crucial factor in the way we work with sustainability and responsibility is to nature and support the communities that affected by our activities in the LEGO group，we recognize the important part ,we can play as an advocate for children s opportunities to play and develop in the local communities