Strategic Management and Lego
1st CASE STUDYWinter appellation 2012/2013Student: Aitor Martin SantanaProfessor: Ravinder Kaur-LahrmannSubject: Administration Tools| THE LEGO GROUP 1. In this case I accept articular some key characteristics that are in affiliation with the activity that LEGO has been following. In the 1970-1980 decades, ambiance was hostile. There was a huge oil crisis, and there were too abundant difficulties. However, LEGO maintained its philosophy, and their angel of different and iconic brand. Adequacy was additionally hard, with Mattel and Hasbro in the market, but LEGO abiding its able position.
If we focus, for example, in the activity that they agitated out amid 1995 and 1998, an absorbing actuality is that their objectives (become the best accepted all-around brand, access the sales, etc. ) are set in a continued appellation direction. Another important point is that they basic to aggrandize the ambit of their activities. They entered in new areas such as films, games… and they additionally congenital new LEGOLAND parks. However, the turnaround attempts that happened amid 1999 and 2003 afflicted this aggregation to analysis their strategy. Different factors such as the alteration environment, advance times… afflicted abnormally LEGO`s strategy.
This shows that the ambiguity of cardinal decisions is additionally decisive. If we attending at the exploring activity model, we can see that the cardinal decisions accept afflicted the three basic elements (position, choices and action). Regarding to the cardinal choices for example, we can acknowledgment the corporate-level and the business akin strategies. I anticipate that LEGO took some actual decisions, such as alteration their accord with retailers, renewing their accumulation chain… 2. There are abounding alien appearance that accept added or beneath afflicted LEGO`s activity development.
One of this factors has been the competitor`s influence. Due to the aerial competitiveness in the toy market, LEGO has to accomplish a big accomplishment in activity in adjustment to be one of the leaders of this industry. Another important affair is the accumulation and the distribution. The basic acumen of alteration their activity is that sales were melancholia and they had to acclimate their accumulation arrangement to this. Concerning the distributors we can accompaniment that retailers were putting too abundant burden on the company, so the band-aid consisted on bringing their positions in adjustment to accomplish bigger results.
Maybe one of the affidavit of starting a agenda activity was the obsolescence of their products. There are another influences account mentioning, such as the bread-and-butter (crisis and bad amount management) and amusing (criticism of the public). 3. Improvements of the basic anatomy were important assets that accept enabled LEGO to accomplish their acknowledged results. If we focus on abstract resources, we can say that the acceptability of this close is key element, abnormally because they created an angel of a family-run company, which accord consumers, shareholders, suppliers… a activity of trust.
Kjeld played an important role. On the another duke one of the best important competences of LEGO is their brand. This is one of the oldest and bigger accepted toy companies in the world, so we can say that their cast is iconic. In my opinion, this is the basic amount adequacy of LEGO. 4. I anticipate that the assorted centralized and alien factors amenable for problems were the key aspect in the development of those another strategies. They afflicted Kejld to booty those decisions.
The antecedent years were adverse, and there were centralized problems such as banking and logistic difficulties, best advance times, etc. Additionally alien factors such as competitor`s ascent ability and problems with suppliers were account in demography the cardinal decisions. In my view, two were the best important strategies: absorption on amount and the accumulation alternation and innovating. Managing the costs calmly is actual important, abnormally for companies that aftermath melancholia products. This gives security. Addition provides a aggregation an added value.
Inviting the consumers to participate in artefact development was an accomplished idea, because in the toy bazaar is all-important to accept lots of ideas. LEGO bare new, bigger and added ideas. 5. In adjustment to access approaching activity development, they could focus on one of the four cardinal lenses (strategy as a design, activity as experience, activity as account and activity as discourse). If they chose the architecture lens, their managers would accept to booty rational decisions with a aerial brand of angary such as those accompanying to costs, their product`s marketing, etc.
They additionally should booty a attending on bread-and-butter performance, which is actual important in LEGO Group. Also, they could focus in the acquaintance lens. Absorption on this lens would be a accessible decision, because LEGO has a lot of alone and aggregate experience. Although LEGO could focus on this lens, I alone anticipate this would not be the best advantage because LEGO needs addition and new account for the future, and this lens states that the approaching has to be fabricated based in the past. The abutting would be the account lens. This would be, with the design, the ens which bigger would fit with LEGO Group`s strategy, and the one that they should advance most. I say this because in the bazaar area this aggregation competes new account are actual important, in adjustment to advance competitiveness. Finally there would be the address lens, which I anticipate could additionally be a acceptable activity for LEGO, but not the best, because we accept to bethink that LEGO doesn`t appetite its managers to accept too abundant ability and legitimacy. Their assignment should be added focused on teamwork and cooperation amid college and lower ability levels in the company.
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