1. LEGO was facing major financial struggles in the early 2000s, losing hundreds of millions each year. 2. When Jorgen Vig Knudstorp became CEO in 2004, he implemented a new culture focused on profitability rather than just nurturing creativity. 3. Key aspects of the new culture included an emphasis on making money, innovation, and applying new ideas to improve processes and products.

1. WELCOME

2. Group Name
Blue Star
Presented by:
NAME ID
1.Afsana Jaman 14102295
2.Nosrat Jahan 13102283
3.Tania Akter 13102563
4.Md. Rawfur Rahim 14202350

3. One Culture Brick at a Time At
LEGO
Contents:
1. Introduction and History
2. Questions ‘ answers
3. The Fall and Rise
4. Swot analysis
5. Summary and Conclusion

4. Introduction
 Brick by plastic brick , the world of LEGO is built on
fantasy.
 The LEGO brand is as strong as ever. The LEGO
company was built upon a vision that we should
nature the child withi everyone of us. This is
timeless vision, and they would remain true to it and
wanted to build their success upon it.

5. History
 LEGO company was firmed by Ole Kirk
Cristiansen.
 He started from a small shop in 1932 and two
years later he adopted name LEGO for his
business.
 LEGO word came from Danish words “Leg Godt”
which means play well.

6. History
 LEGO company was firmed
by Ole Kirk Cristiansen.
 He started from a small
shop in 1932 and two years
later he adopted name
LEGO for his business.
 LEGO word came from
Danish words “Leg Godt”
which means play well.

7. QUESTION 1
Upon Knudstorp’s arrival at LEGO, was the
organization culture healthy or unhealthy ?

8. Answer no. 1
The culture was unhealthy. The company was
p rivately held and was majority-controlled by the
Christiansen’ s heirs . LEGO tried and failed to
expand into everything from clothes and
computer games to LEGO theme parks in the
United States and Europe. By 2004, LEGO was
losing hundreds of millions a year, and the
company looked as if it would go under.

9. QUESTION 2
Describe Knudstorp’s vision for the new
culture at Lego (What were the primary
dimensions of the new culture?)

10. Answer no.2
Knudstorp’s vision for the new culture at Lego
centered around the importance of making money
and surviving in a world dominated by PlayStations
and iPods. The old culture of “nurturing the child” as
the top priority which was actually written in LEGO’s
employee mission statement was replaced with a “I
am here to make money for the company” culture.

11. Answer no. 2
The primary dimensions of the new culture
were aspect of organization culture that
encourages the application of new ideas to the
improvement of organizational processes,
products, or services. Innovation is a major
source of organizational change and
improvement.

12. QUESTION.3
Assuming that you are Knudstorp,
list three facts you would use to reinforce
behaviorwithin the new culture. Explain why you
would use each artifacts.

13. Answer no.3
 A cultural artifact is a dimension of an
organization that helps to describe and reinforce
the culture, or beliefs, values, and norms, in
which an artifact exists. Three types of artifacts
which to reinforce behavior within the new
culture. These are:
1. Lego movie maker
2. Lego video games
3. Lego education

14. Lego movie maker:

15. Importance of artifacts
Lego movie maker:
Brilliant app for children. Children create their
own lego movies using the camera on the iPad;
easy to use with clear instructions. This app is
brilliant for enhancing creativity and enabling
children to let their imaginations run wild. We like
that this App could be used as a way into writing;
children could build their video and then write the
story of it (or vice a versa)- an excellent resource for
hesitant or reluctant writers.

16. Answer no.3
Importance of artifact:
 Skills Developed
 Enhances creativityEncourages imagination
 Enhances story telling abilit

17. Importance of artifacts
Lego video games:
Assuming that children playing LEGO video
games will want to play more with LEGO toys,
parent's get a built in system for enhancing a
child's spatial skills, at the very least. hildren can
play LEGO games without getting too frustrated,
and even non-gamer parents will also be able to
play and have fun

18. Lego video games

19. Importance of artifacts
LEGO education:
 Lego provides tools that develop lateral thinking
in a fun environmentIt teaches kids to think in
three dimensionsIt improves literacy as kids work
with instructionsIt develops problem-solving,
organization, and planning by constructionIt
improves creativityIt enhances communication
and critical thinkingIt boosts kids motor
development.

20. LEGO education

21. The Fall and Rise
 Lego is worlds largest company.
 But start of the 21st century was not very pleasant
for the company .
 Company suffered huge losses in 2000, 2003 and
in 2004

22. Swot analysis
STRENGTH:
 Strong hold onEuropean market.
 Strong brand name
 Big scale business.
 Global retail network

23. Swot analysis
WEAKNESS:
 Coordinates production with demand
 Expansion ofLEGO GROUP WITH their current
product lines are yet to increased worlwide.

24. Summary and Conclusion
In 2003, LEGO was according to the Knudstorp
review “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”.
The company had reported losses of $228 million
on sales of just over $1 billion in 2003 and a loss of
$207 million on sales of $1.1 billion in 2004.! ! In
2013, the company achieved $4.5 billion of
revenues and profits of $1.5 billion.

25. Summary and Conclusion
Clear leadership with a command structure
focused on profitability. A premium pricing
strategy and a high return on sales target. A
return to core values on product quality, the lego
legacy and a value for money proposition for end
users and the retail customers. ! ! Understanding
the KSFs, the key success factors were
instrumental in this process.