Lego: Building for the Future

In the problem analysis phase of effective decision making, group members should recognize any obstacle that may arise that needs to be improved or changed and determine the characteristics, magnitude, and possible cause(s) of that obstacle confronting them. This phase lays the groundwork for what the group should be prepared for as they work together (Hirokawa & Salazar, 1999 p. 170).After analyzing the problem, the group should then discuss and establish goals and objectives in order to generate proposed solutions of

1) How did information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?

The present paper aims at identifying pros and cons of each of the protection mechanisms and recommending the most suitable methods for the LEGO Group and at the same time enable it to enjoy its freedom to operate.

approach strategy of inquiry to investigate not only possible solutions, but to explore direction to

From this section you will be able to see how to solve the problem and what the action plan might look like.

The decision making process can also be divided into seven steps, where the first step will basically involve defining the problem. These steps allow for the main issue to be identified, and therefore the manager should make sure that it has been done correctly. After the problem identification stage, we can move forward and identify the limiting factors, and in this the manager should make use of all resources available to do it the best way. Some of the resources include information, time, personnel, equipment and supplies. Using this, managers can be able to identify the factors that might hinder them from achieving their goals.

The best alternative from the above is to adopt the strategy of focusing on the process (1st alternative). This can be achieved by the proposed care path. Most of the operational issues under Key issues

It centers on the analysis

There are many barriers to new organizations in the toy industry, making the threat of new entrants low. Lego and other big toy companies like Mattel benefit from economies of scale. An economy of scale is achieved by lower costs through large volume production (Textbook glossary). Economies of scale can occur in many departments within the organization including production, marketing, research and development, and finance. Some manufacturing of Lego products was shifted to Central Europe and Mexico in order to benefit from lower wages and to shorten product supply chains (p. 13 of case). The management of Lego additionally holds expertise on production, distribution and customer needs; which are absent in a new organization. To enter the toy sector a potential entrant needs to calculate the start of production at a level that will give a competitive position and production costs lower than the market.

The first step in the decision making process is to gather information about the problem. The best method to acquire this information is from the users through

Advances in the field of information technology and introduction of new hi-tech form of entertainment such as tablets and gaming consoles had left Lego trailing in the entertainment field. Jorgen Vig Knudstorp was appointed as the CEO to revamp the company’s business process, organization structure and information systems. Knudstorp was quick to act and first made changes in the company’s production process. He encouraged designers to use the unused components in development of new products and design, thus reducing the number of unused

First step in decision making process is identifying the problems. As McShane and Von Glinow (2000) stated, a problem can be

This case study outlines the steps taking by a committee to during the process as well as the solution to those problems will be discussed.

LEGO A/S Aastvej 1 DK-7190 Billund, Denmark Tel: CVR-no: Residence: Reporting Year: Internet: E-mail: +45 79 50 60 70 54 56 25 19 Billund 1 January – 31 December www.LEGO.com sustainability@LEGO.com

This essay will consider firstly the position of Lego in relation to both the constraints of the internal and external