Posted: August 19th, 2015

The Lego Group.

After leaving Sussex University, you are appointed as Strategy Executive for the LEGO Group in Denmark.
The well-known LEGO Group had ongoing success, led by the family, from the time it started to the 1990’s. Then, in response to emerging environmental threats, ambitious growth objectives were set. This was not successful and there followed a difficult period through to 2005. The case study gives you some background as to what followed. By 2010 the situation was much improved.

The new CEO, Jorgen Vig Knudstorp, has asked you to advise him on the ‘right strategy for the continued success of the LEGO Group’. He asks you to prepare a strategy report giving particular attention to these questions:
1. Critically analyse the external environment as described in the case and from your knowledge of recent developments. Explain the impact these factors have had on strategy development.
2. Identify their strategic capabilities (ie competences & resources) and show how these have been exploited to regain their successful position in the global toy market.
3. Use the internet to determine their financial strength & organizational purpose.
4. What strategies has the LEGO Group adopted over the years, as described in the case? Have these been successful? Evaluate with reference to models used in the lectures on strategy development & choice of strategy.
5. Looking at the LEGO Group today, what strategies would you recommend to ensure a successful future? You should research existing strategies from on-line sources.

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