Brief Analysia of Lego Strategy

2) Which of the generic strategies does Lego appear to be using based on this case? Provide support of your choice.

Edmonds, T., Tsay, B., & Olds, P. (2011). Fundamental Managerial Accounting Concepts (6th ed.). New York, NY: McGraw-Hill/Irwin.

Hilton, R. (2011). Managerial accounting: Creating value in a dynamic business environment (9th Ed.). McGraw-Hill. Hardcover ISBN: 9780073526928.

Folk, M., J., Garrsion, H., R., & Noreen, W., E., (2002). Introduction to Managerial Accounting. New York, NY: McGraw-Hill/Irwin.

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

Garrison, R., Noreen, E., & Brewer, P. (2015). Managerial accounting (Fifteenth ed.). New York, NY: McGraw-Hill Education.

At that time, the performance winners for LEGO were speed (of delivery), and flexibility (wide range of products, volume and delivery adjustments at short notice). Cost, dependability and quality were not as vital. To achieve these objectives, LEGO had made several operational decisions: Speed: • Maintain multiple distribution centres, close to key markets: 5 in Europe, 1 in USA • Maintain high stock levels, of finished product, and components so products could be assembled quickly. Flexibility: • Supply retailers both large and small, from relatively close distribution centres • Frequent, small, orders accepted • Introduce new products to the range, and discontinue old

Noreen, E.W. & Brewer, P. C. & Garrison, R. H. ( 2011). Managerial accounting for managers. Retrieved from

In recent years, the practice of creative accounting by the management of large listed corporation in the UK has received increasingly more attention and allegations, especially from key financial information users. Supported by significant evidence of the practice of creative accounting, it is largely believed that such practices misrepresent the underlying reported financial performance of firms, instantaneously conflicts key core aims of accounting – to provide consistent and comparable information to users.

Lego should try to promote the brand more aggressively to coax the customer preferences towards Lego toys.

Lego's key strengths may be seen as coming from both its brand recognition and its ability to use innovative

Lego has many diversified products, but the base of all of them are the plastic Bricks, which actually makes the company successful as the result of the possibility of rebuilt the

Lego has been a really successful company worldwide, and in this case study it has been shown that how they went through their growth stages and what strategies they implemented.

To answer the problem we used a history of LEGO, made a Value Chain, a SW-model and organization structure.

The Burns and Scapens framework for analyzing managerial accounting change was built on the study of old institutional economics, which sees "economics as a process of social provision, subject to multiple and cumulative causation." This view culminates in a model that argues that the managerial accounting practices at institutions are subject to a process of constant change, influenced by routines and rules. The institutions contribute to these routines and rules, but so do actions on the part of managers within the institutions. By combining multiple influences over time, we arrive at modern managerial accounting practice. In other words, Burns and Scapens tells us that managerial accounting practice changes over time, influenced by a number of factors including rules, routines and actions.