Individual Case Project #1. . Lego Case. . . Briana Basilone

Good Essays
Individual Case Project #1


Briana Basilone
HR Strategy II
Due Feb 22, 2017

LEGO started in 1932, when a father and his sons began designing wooden toys. The idea started out very small, but they ended up becoming one of the biggest toy leaders in the world. Although they are a huge success and known globally today, that does not mean they never encountered roadblocks; they actually ran into quite a few, including competitors, lawsuits, and loss of revenue (Bigus, 2011). Like every company, LEGO brand has their strengths, weaknesses, opportunities and threats, presented using a SWOT analysis (Rothaermel, 2017, p. 130).
LEGO is a leading toy company across the globe, so they obviously have numerous strengths
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Not only did their workshop burn down twice, but their founder, Kristiansen, died when the company was still young with only 140 employees. By 2000, they were making so many different lines that there wasn’t enough space on the shelves to hold all their products. Some turned out to be unsuccessful and were discontinued to free some space in the stores. Their biggest weaknesses were with the production, manufacturing and distributing of products. First, the newer-generation sets were getting too complicated and not bringing in enough profit (return on their investment) because they were not paying attention to the high cost of production. This caused a lot of materials to go to waste, which is money down the drain. Their molding machines also caused problems; they were organized poorly, which in turn created expensive retooling and too much downtime. Their distributions were costly and they were using so many different providers that there was a backlog of orders and inaccurate inventory. This wasted a lot of time and money and caused incorrect forecasting, which in turn created shortages in inventory and lowered their sales. Fortunately, they were able to learn from their mistakes and correct their wrongs by having improved control over their inventory and using cheaper methods of production and distribution (Bigus, 2011).
LEGO saw a few opportunities that they made
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