The LEGO Case Study - New for 2013 In 2003 and 2004 LEGO announced losses of over $400 million dollars on annual sales of just over $1 billion. The reorganization plan announced in 2001 had begun to falter. The company was forced to take a hard look at every facet of the operation including costs‚ overheads‚ margins‚ sales‚ marketing and the product offer. Non performing assets‚ including the company’s LEGOLAND parks were sold off. A radical plan for recovery and growth was introduced. Since then
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Minifigures for role play‚ LEGO MINDSTROMS‚ LEGO Friends for girls and LEGO Movie. (LEGO) However‚ in 2003 LEGO Group’s survival was at risk. The son of Ole Kirk injected their own money and appointed McKinsey’s former management consultants‚ Jorgen Vig Knudstorp to get LEGO back on track. (The Economist) LEGO’s Value
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efforts could enable the LEGO to survive from the turbulent recession and gain even better market share. In order to observe the effective management strategies‚ this paper will trace the new or consistent strategies under the current CEO‚ Jørgen Vig Knudstorp (2004 - current). In addition to this‚ I will take a brief look at progress reports to get better sense of what the LEGO Group’s brand positioning and analyze the annual reports to observe financial status. Some financial ratios need to be
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decade 2001.! Signs of Recovery 2002.! Hopes dashed - 2003.! LEGOLAND parks.! LEGO Brand Stores.! The Knudstorp Review.! 8! ! Financial Focus - the ! Oveson addition. ! 9! ! Back to basics and the limit to adjacencies. ! ! ! 10 ! Developing the strategy ! why do we exist? ! ! 11 ! First the action plan - first ! things first. ! ! 12 ! Summary and Conclusions! ! 13 !Appendices ! ! 13.1 Knudstorp on! ! communication ! ! 13.2 References and slides The A 1 Introduction ! In 2014‚ LEGO® announced
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difficulty‚ since 1998 it had been losing money and in 2003 and 2004 Lego suffered the biggest losses in its history. Despite being a much loved toy and brand Lego was facing financial collapse. This case study details the steps taken by new CEO Jorgen Vig Knudstorp to save Lego and I will also perform a SWOT analysis detailing the internal and external environment facing Lego at that time. Lego SWOT Analysis Internal Environment Strengths Widely Loved Toy Huge Brand Loyalty Highly Respected Play
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Name : PRASHAST JAIN Program : Global MBA Course : Strategic Thinking Assignment Discussion Questions for “LEGO” 1. What led the LEGO group to the edge of bankruptcy by 2004? Please focus on the management moves during “the growth period that wasn’t” (1993-98) and “the fix that wasn’t” (1999-2004). 2. Why did Knudstorp’s turnaround strategy work? In your opinion‚ which actions were the most
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employee. The LEGO group had at the time roughly 11‚000 supplier‚ a number that almost twice compare with Boeing used for its plane‚ that number has also the contributor of the dropping of LEGO revenue. In October 2004‚ Jorgen Vig Knudstorp was appointed as Kristiansen’s successor. The Jorgen was only the second person outside the founding family who held the position of CEO. He defined
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stop losing money in LEGO’s case) is to cut the cost of production. That was exactly what LEGO had in mind when outsourcing their production. Although it did not go as planned‚ LEGO learned a great deal from their partnership with Flextronics. Jorgen Vig Knudstorp summed up the partnership by stating‚ “It takes more time to educate people than we had expected‚ and that means that we are still more effective in Billund”. LEGO did on anticipate how much of a change would occur. They figured that the only
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-Summarize the discussion on page 505. INNOVATION‚ ENTREPRENEURSHIP‚ AND THE GLOBAL STARTUP: Italian Entrepreneurs Combine Fashion and Function In Italy entrepreneurship is successful creating rivalry in existing industries. Italians are individualistic and risk takers. Entrepreneurship has become elaborated in Italy; quite a few numbers of magazines celebrate these entrepreneurs. According to Peter Drucker an entrepreneur is someone who would introduces innovation .He further explains how innovation
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The Lego Group: Building Strategy‚ Case 10 Overview LEGO‚ the brand of toy that has been played with by multiple generations of people was founded during the Great Depression in 1932 by Ole Kirk Kristiansen‚ a Danish carpenter. Kristiansen started making toys out of wood and had 12 employees under him. The word LEGO combines two Danish words leg and godt‚ which mean “play well” and in Latin‚ fittingly means “to put together”. It’s ironic that LEGO was given that name because it was only later
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