2) Which of the Generic Strategies Does Lego Appear to Be Using Based on This Case? Provide Support of Your Choice.

1555 WordsSep 26, 20157 Pages
1) How did information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? When Knudstorp became the CEO, the company was with negative cash flow and the real risk o which would have even led to a breakup of the company. There was the change in the business strategy in the company that was brought up by the new CEO. The strategy was to survive, cut costs, sell businesses, generate cash and ignore the dash for the growth in the immediate future. Lego was known for the traditional blocks and components that will allow children to build anything with their imagination. The business strategy was to broaden the Lego products for the other customer segments. They created the…show more content…
To achieve its business strategies the LEGO has taken the help of the IT vendors IBM and SAP for the establishment of their IS making it possible to extend more quickly and add capacity and functionality as it was needed. Supporting massive expansion brings its own challenges, one of which is to ensure that the underlying systems can scale reliably and effectively. The main issues with the supply chain management, end customer feedbacks, product profit accountability, spread its market and the various unit functioning etc. had been addressed completely by the advent and the establishment of the efficient IS for the business. Thus, in the LEGO Case study provided, the new CEO Knudstorp has very efficiently aligned the IS and organization design with respective to the business strategy to bring success for the company. 2) Which of the generic strategies does Lego appear to be using based on this case? Provide support of your choice. The strategies that Lego had used based on this case study are Cost leadership: The costs of the company has to be minimized so as to minimize the cost for the customer without deceasing the profits. The company has applied

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