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Lego

In: Business and Management

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Qn1. Explain how the development of strategy at the LEGO Group reflect the key characteristics of strategic management

The LEGO Group has a very rich and proud history that span nearly over 100 years. The LEGO Group’s core success would be their traditional yet innovative toy ‘brick’. This brick is so popular till date mainly due to its unique interlocking principle that offers unlimited building possibilities. It encourages one’s mind to be creative and allow the imagination to keep going.

Qn2. Features of the external environment that influenced strategy development at the LEGO Group

Qn3. Resources and competences of the LEGO Group that enabled them to regain their successful position in the global toy market

Lego has managed to regain successful position in the global toy market through having capable human resources and financial resources as well as having the competency in creativity, innovation and quality control.
Capable human resources
Lego’s Chief executive recognized and acknowledged the problems LEGO are facing. * Kids were getting older younger and leaving Lego sooner. * The channel has changed. Companies, like Toys 'R Us and Walmart, that sell Lego had become more sophisticated. * Many of Lego's patents had expired leading to increased competition. * Rivals were outsourcing productivity to China and other, cheap economies whereas Lego was based in Denmark. * Lego needs to reduce debt, increase growth and to improve profitability. Made bold moves in debt reduction
He came out with solid business strategies to deal with the problems, reshuffling his management team by bringing in new managers and giving vital appointments to his managers. New corporate departments are also created to facilitate structured innovation in Lego’s products.
Financial Capital
Lego in a bold move, reduce and abandon other

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