Billund, Denmark

Contents 1. Introduction - 3 - 1.1 Problem statement - 3 - 1.2 Delimitation - 3 - 1.3 Report structure - 4 - 1.4Methodology section - 4 - 2. Organizational structure and design of LEGO - 4 - 2.1 Organizational design of Lego - 5 - 3. Influence of organizational type to internal relationship in company - 7 - 3.1 Relationship with customers - 8 - 4. SWOT - 8 - 4.1 Making weaknesses into strengths - 10 - 5. Suggestions of motivation improvements - 10 - 6. Conclusion - 11 - 7

nti-corruption Philanthropy B = The LEGO Group’s magazine The Brick Printed matter 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 The LEGO Group – Progress Report 2009 3 KEY FIGURES FOR 2009 Key figures for 2009 2009 2008 2007 2006 Financial

Name : PRASHAST JAIN Program : Global MBA Course : Strategic Thinking Assignment Discussion Questions for “LEGO” 1. What led the LEGO group to the edge of bankruptcy by 2004? Please focus on the management moves during “the growth period that wasn’t” (1993-98) and “the fix that wasn’t” (1999-2004). 2. Why did Knudstorp’s turnaround strategy work? In your opinion, which actions were the most

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

Case Study Discussion Module: | Strategic Management and Leadership | Session: | Introduction to Strategy and Strategic Management | Submitted by: | Lord Mills, | Exploring Strategy: 9th edition, 2010: Johnson, Scholes and Whittington: Prentice Hall Publishing LEGO Group: Working with Strategy – pages 542 – 546 1. Explain how the development of strategy at the LEGO Group reflects the key characteristics of strategic management. As a reminder, strategic management has three key characteristics:

Integrated Brand Communications MKT4070 TABLE OF CONTENTS INTRODUCTION 3 QUESTION 1. (a) Critical analysis of LEGO’s SWOT in 2004 3 QUESTION 1.(b) LEGO’s communication effects and objectives post 2004 considering its SWOT in 2004 6 QUESTION 2. Application of various concepts applied by LEGO as a part of the IMC programme 8 (a) POSITIONING STRATEGY AND POSTIOING TACTICS 8 (b) BRAND NARRATIVES 9 (c) BRAND ENCOUNTERS 10 (d) BRAND COVERSATIONS 12 QUESTION 3. Critical evaluation

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Executive Summary Since LEGO Group’s (LEGO) inception in 1932, the world-famous toy maker overcame numerous challenging obstacles to become the leader in the building toy segment. By 2010, LEGO had witnessed all-time high annual sales of over US$3.7 billion to become the fourth-largest toy manufacturer in the world. Upon analysis of LEGO’s strengths through Resource-Based View, LEGO holds few key competitive advantages attributed to their success: strong brand name and innovative culture. These traits

management in 2005 and there was agreement that there was shared commitment and recognition of challenges in turning LEGO into a global brand organization * LEGO Land parks were developments which entailed setting up presence in countries outside Denmark; the company applied its philosophy of transferring its values but was careful to apply hands-off localization in a way that would not jeopardize the guidance of the company headquarters * Because of the homogeneity of Headquarters, LEGO realized

"What are those?" I asked my mom, walking through Toys "R" Us and pointing at a large box. "Those are Legos, you can put them together and build things," she responded. I stared at them, repeating the name in my head. Legos. It was a funny name. They looked like colorful bricks with holes in them. "Can we get them?" I asked. Sure enough, we were carrying a box of them to the checkout section. Crazy as it seemed, the small blocks mesmerized me as a kid. The different colors, sizes, shapes, all