The LEGO Group has Historically been a Successful Family-led, Innovative, and High Growth Company: Management Strategy Case Study, NUS, Singapore

The Lego Group 

1. Explain how the development of strategy at the LEGO Group reflect the key characteristics of strategic management outlined in section 1.2 and in the model in Figure 1.4
2. What features of the external environment have influenced strategy development at the LEGO Group?
3. What resources and competencies of the LEGO Group have enabled them to regain their successful position in the global toy market?
4. What were the alternative strategies facing the LEGO Group in 2004? Why do you think the LEGO Group followed the course that they did?
5. Looking at the LEGO Group today how would you approach strategy development to ensure the successful development of the company in the future?

CASE STUDY

The LEGO Group: working with strategy

The LEGO Group has historically been a successful family-led, innovative, and high growth company in the global toy industry. Then it experienced a period of poor performance and strategic uncertainty. The company improved its situation in 2008 and again in 2009. Developing the company requires ongoing efforts which involve many aspects of strategic management

In its annual report for 2009 the 11-X10 Group announced sales of 11.661 million DICK’ £1397m = $2134m €1566m) and operating profits of 3002 million DKK (1.:360m = $549m = €403m) (Figures 1 and 2). This was an impressive increase of 22 percent in sales (over 2008) and an even more impressive increase of over 50 percent in profits. Even though 2008 had been a good year for the LEGO Group with sales 19 percent up. the performance in 2009 was even better. What made this particularly encouraging was that the global toy market was stagnant or even declining. ft looked as if the LEGO Group in 2010 could be back on a healthy growth track after a turbulent period.