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Lego Case Study

In: Business and Management

Submitted By Corrigan9
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1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy?
Knudstorp implemented a business scheme in such a way that it has changed the company entire loss

history and regained its fame over the time. When Lego was a startup company it was in profits, it

Gradually failed to turnout its customers, by implementing his strategic plan, credibly he manufactured

almost 90% of products with same components and built the products to attract the customers. It was

Successful and it gradually gave a rise in using of the Lego toys all over again. Designers were made to

reuse the components in the new products. In this way he cut-shorted the number of products from

13,000 to 7,000. This reduction saved a significant amount to the company. He followed an expression

which says “managing at eye level,” meaning his ability to talk to people on the factory floors, to

engineers, marketers at home. He emphasized the importance of performance. Knudstorp followed a

principle that everyone need to build a mind-set where non-performance is not accepted because there is

no place to hide if performance is poor. Lego has introduced computer games with building blocks

characters with playing heroes and villains. He introduced theme based building of games. The core

theme of Knustorp’s plan is “nourishing a child”.

2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice. Lego was formulated with mainly three business strategies organizational, business and information systems strategy. The Line of Lego mainly aimed at girls. The fact behind this is to attract the boys. The
Lines are also based on movie themes, the entrance of virtual world and the engaging of adults
Creations.

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