Essay on Lego Case Study

Decent Essays
Lego Case Study

1. What business goals were set by Knudstorp?

Ans. Jorgen Vig Knudstorp, the CEO of Lego set the following goals for the company which was performing very poorly,

* To remain profitable while maintaining growth, continuous innovation and quality of the products * To reach to broader customer segment * To cut expenses in production and supply chain and making these processes more efficient

2. What business strategies were set by Knudstorp?

Ans. Knudstorp set up the following business strategies to ensure Lego’s profitability and growth:

* Turning the supply chain into an efficient one by contacting top retailers, filling the blank spaces in the supply chain and reducing cost *
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* Development time was reduced by 50% which resulted in speed in the business process. * Reusable parts were created for using in manufacturing process which in turn reduced some pressure in the supply chain. * Lego gave the customers the opportunity to get involved in the discussion and product innovation by providing real-time feedback. Also, brand ambassadors were created to represent Lego among various building communities and thus involving customers in the making and development of the product.

Some necessary changes were made in the information system to support the new business and organizational strategies, they are stated below,

* Lego established an integrated and flexibly structured information system which allowed them to make changes in it as necessary. The new system included applications for human capital management, operation support, product life cycle management and data support which helped them greatly in alleviating problems in order management, fulfillment and employee management, areas that were stumbling to keep up with company’s growth. * New technology was also incorporated as Lego entered into online virtual interaction games and video games.

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

Ans. From the case it appears that Lego is following ‘Focus’ strategy with a
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