Csr Lego
CSR & Sustainability Case Study
The LEGO Group
CSR & Sustainability Case Study
The LEGO Group
Introduction
The LEGO Group is a privately held company based in Billund, Denmark. It was founded in 1932 by Ole Kirk Kristiansen, initially a small carpenter’s workshop (Lego Group, 2011). It has since grown into a modern, global enterprise that is now, in terms of sales, the world’s fourth-largest manufacturer of toys (Keynote, 2010). The LEGO Groups core product is a line of plastic, interconnecting building bricks, predominantly targeted at children aged 3-14 years, sold in over 130 Countries (Encyclopaedia of Consumer Brands, 1994). The LEGO Group operate globally in the Toys & Games sector, with the UK market valued at £2.1bn as of 2009(Keynote, 2010b). Whilst the UK market had seen steady growth year upon year, it is currently in decline, with the sales of toys and games falling between 2008 and 2009 (See Appendix 1); however Lego has bucked this trend through innovation and targeting older demographics, posting UK Sales of £1.3bn, up from £1.01bn in 2008 (Keynote, 2010), with Global profits increasing 68% on 2009, as the Eastern European and Great Britain markets see the largest growth in terms of sales (Lego Group, 2010). Whilst toy manufacturing is the LEGO Groups core source of income, they also have a 30% stake in LEGOLAND Theme parks, after selling the majority in 2005 due to financial troubles (BBC, 2005). Lego base their products on the philosophy that children learn and develop through play and “good play enriches a child’s life – and its subsequent adulthood”, with the vision of “inventing the future of play” (LEGO Group, 2009). Rated in the top ten brands amongst families with children, Lego position themselves as being recognised, trusted, respected and loved (LEGO Group, 2002),whilst being associated with high quality and happy memories their products often have the image of being old fashioned and dull (Schultz et al, 2005:169)
The LEGO Group
CSR & Sustainability Case Study
The LEGO Group
Introduction
The LEGO Group is a privately held company based in Billund, Denmark. It was founded in 1932 by Ole Kirk Kristiansen, initially a small carpenter’s workshop (Lego Group, 2011). It has since grown into a modern, global enterprise that is now, in terms of sales, the world’s fourth-largest manufacturer of toys (Keynote, 2010). The LEGO Groups core product is a line of plastic, interconnecting building bricks, predominantly targeted at children aged 3-14 years, sold in over 130 Countries (Encyclopaedia of Consumer Brands, 1994). The LEGO Group operate globally in the Toys & Games sector, with the UK market valued at £2.1bn as of 2009(Keynote, 2010b). Whilst the UK market had seen steady growth year upon year, it is currently in decline, with the sales of toys and games falling between 2008 and 2009 (See Appendix 1); however Lego has bucked this trend through innovation and targeting older demographics, posting UK Sales of £1.3bn, up from £1.01bn in 2008 (Keynote, 2010), with Global profits increasing 68% on 2009, as the Eastern European and Great Britain markets see the largest growth in terms of sales (Lego Group, 2010). Whilst toy manufacturing is the LEGO Groups core source of income, they also have a 30% stake in LEGOLAND Theme parks, after selling the majority in 2005 due to financial troubles (BBC, 2005). Lego base their products on the philosophy that children learn and develop through play and “good play enriches a child’s life – and its subsequent adulthood”, with the vision of “inventing the future of play” (LEGO Group, 2009). Rated in the top ten brands amongst families with children, Lego position themselves as being recognised, trusted, respected and loved (LEGO Group, 2002),whilst being associated with high quality and happy memories their products often have the image of being old fashioned and dull (Schultz et al, 2005:169)
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