powerful brands in the world. The company was founded by Ole Kirk Christiansen in 1932 in Denmark. Ole was carpenter who decided to make toys out of wood. Over the years‚ the company tried producing a variety of goods including watches and clothes aiming at becoming a lifestyle brand which made LEGO lose its identity and to grow at a slow pace. In 2001‚ Kjeld Kirk Christiansen‚ a grandson of the founder admitted that LEGO was struggling. Kjeld embarked on the strategy of innovation but no significant
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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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There are about 915 million ways to combine six LEGO® bricks . But how many ways are there to keep a company on the right track? Kjeld Kirk Kristiansen‚ current owner of the LEGO Group‚ was faced with this question in 2004. On the surface it did not become known that LEGO was in trouble in those days. The small bricks were welcome all over the world and the British Association of Toy Retailers joined Fortune magazine in naming the company’s classic bricks the toy of the century. But the fifth-largest
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making company • Founded in 1932 (during the Great Depression)as a small carpenter’s workshop Ole Kirk Kristiansen – build stepladders‚ iron boards and wooden toys • HQ – Billund‚ Jutland in Denmark • 1934 – Kirk’s son joined Godtfred Kirk • LEGO means – “leg”(play) “godt”(well) ORGANIZATION • Owned by the third and fourth generations of the Kirk Kristiansen founding family: Kjeld Kirk Kristiansen and his three children. FINANCIAL HIGHLIGHTS Income Statement Revenue Expenses Net Profit Employees:
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research has found that its investment in quality and design has fuelled its recovery. Analysis: During the years 2003 and 2004‚ the 82-year-old family-owned Danish toy company was in huge crisis. Now‚ after Knudstorp took over as CEO from Kjeld Kirk Kristiansen‚ grandson of the company’s carpenter founder‚ the company’s revenue quadrupled in less than 10 years. Its high profitability comes from its ability to turn each kilogram of raw material plastic costing less than $1 into sets that sell for
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The changing nature of the toy industry contributed to the downfall of the LEGO Group. As the consumer trend in the toy industry has shifted towards technology and other substitutes like video games and other online activities have reduced the demand for traditional toys. The toy industry was dominated by a few companies that fought over retail space‚ reduced prices‚ and launched new product lines to appeal to more consumers. Furthermore‚ the increasing power of giant retailers like Wal-Mart and
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TASK 1 Introduction The LEGO Group is a privately held company based in Billund‚ Denmark. The company is still owned by the Kirk Kristiansen family who founded it in 1932. The LEGO Group is engaged in the development of children’s creativity through playing and learning. Based on the world-famous LEGO® brick‚ the company today provides toys‚ experiences and teaching materials for children in more than 130 countries. The LEGO Group has approximately 9‚000 employees‚ and it is the world’s third
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showing how toys designer using their creative to create Lego by think outside the box (Elamsy‚ 2014). In 1932‚ Ole Kirk Khristiansen created the Lego Group and innovate the wooden toys that are radical
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internal resources in order to meet the needs of the external environment. The Lego group up to 2004: In 2004 the Lego group was u nder the leadership of CEO Kjeld Kirk Kristiansen‚ the company faced a large number of problems including posting a loss for the year of DKK 1‚800m despite a group turnover of DKK 6‚295m. As a result Kristiansen stepped down from the chiromancy and deposited a further DKK 800‚000 of personal funds into the company. Despite these headline figures the problems facing the
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play and not much interest in toys that didn’t offer instant gratification. These external and market changes did not play well to LEGO’s strengths. Along with the external factors‚ serious changes were also happening in the LEGO Group. Then CEO‚ Kjeld appointed a five-person management team to help him run the company when he returned. The group focused mainly on driving growth. When a benchmarking study revealed LEGO’s global name recognition was on par with industry giants like Disney‚ the team
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