Analysis of the Operations Strategy and Management Decisions in Lego Group between 2004 and 2009 Summary By 2004 Lego was in considerable trouble; it had made a loss of approximately £200m; sales fell by 40%. One reason for this was lack of success in moving into new markets‚ such as computer games and clothing. However‚ a major cause for the financial woe was due to issues in the supply chain; costs were not being squeezed out‚ and the increase in specialised LEGO models had led to an explosion
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1. Recap the Facts I learned from Uli’s slideshow LEGO made action figures in yellow to allow children to allow their imaginations to think of the figures as any color. The diversity of the toys moves into the hiring process to equalize the diversity in the company. I have noticed in most of our slideshows there is a certain percentage of women in executive teams. LEGO has one woman in the executive team. This was surprising because I stereotype women as caregivers for children and would know more
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Lego Case Study Report Introduction The Lego Group was founded in 1932 by Ole Kirk Christiansen. For years of development‚ Lego has achieved the transition from a carpenter’s workshop to a global enterprise. Its Lego brick has been named the ‘toys of the century’ twice and greatly contributes to the company’s stable growth. Nevertheless‚ Lego struggled mightily in the early to mid-2000s. Sales dropped 30 percent in 2003 and 10 percent more in 2004‚ and the company was destroying about $337‚000
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Media and Communication‚ Pune Brand Management Prof. Atul Tandon Lego Case Study Lego – The way the world plays An Introduction: LEGO Lego) is a privately held consumer product company engaged in the manufacture and distribution of a wide range of toys‚ video games and online games. A powerful and instantly recognized global brand has been a key feature of Lego’s success. Lego has worked hard to establish this brand through a number of routes. The
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Lego Case Study Analysis Pallav Mathur Q 1. What led the LEGO group to the edge of bankruptcy by 2004? By the end of 2003 Lego was already facing crisis owing to dipping profits and declining market pool for toys. Lego had planned to expand into markets beyond building toys and needed huge investment to be made in it. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returns
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Lego targets parents‚ offering an alternative to television! From the first glance‚ it is immediately noticeable that this controversial advertisement is clearly very different from the traditional advertisements one would expect from Lego. It definitely has the parents as the target audience and is focusing on the parent’s fear of bad influences on their children. When one considers who the preferred‚ negotiated and oppositional readers would be as defined by Stuart Hall (Hall et al. 1980)
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1. From early 1990s to 2004‚ the Lego Group‚ a long successful toymaker with a world-renowned brand‚ fell into the edge of bankruptcy. Compared with the highest revenue in 1999‚ the revenue in 2014 decreased by 35.6% while the net profit was negative‚ seven times less than that in 1999‚ the lowest in the past ten years. Its net profit margin and ROE were also the lowest. The gross margin and inventory turnover were all lower than its competitors. The strategic moves in the two main periods “growth
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! ! ! ! ! ! ! ! ! ! ! ! The LEGO Case Study 2014 ! ! ! ! ! ! ! ! ! ! The A CONTENTS ! ! ! 1! ! 2! ! ! 3! ! 4! ! 5! ! 6! ! 7! ! Introduction!! ! ! Difficult start to the 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 -
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Case Write-Up: LEGO Group-An Outsourcing Journey Q1 LEGO’s main expectations and learnings from the relationship with Flextronics LEGO’s main expectation was to optimize its global supply chain by saving cost and reducing production complexity from the cooperation with Flextronics. However‚ the contract between those two lasted for only 3 years. In the end‚ LEGO re-took control of plants in Czech Republic‚ Hungary and opened a new site in Mexico Lessens LEGO received from this unsuccessful
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improve cross-cultural management within MEC? CASE TWO LEGO What are LEGO’s values and corporate identity? How did these develop over time (prior to LEGO Media Int’l)? How did Lego’s organizational structures & policies permit int’l alignment AND explicitly reflect the company’s belief in equifinality? How did LEGO actively reduce barriers to communication? Give examples of some of their internal communication practices & indicate which communication barriers these practices helped to reduce
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