Strategic Management and Lego

1st CASE STUDYWinter term 2012/2013Student Aitor Martin SantanaProfessor Ravinder Kaur-LahrmannSubject Management Tools THE LEGO GROUP 1. In this case I have identified some key characteristics that argon in relation with the outline that LEGO has been following. In the 1970-1980 decades, environment was hostile. There was a huge oil crisis, and there were in like manner much difficulties. However, LEGO maintained its philosophy, and their compass of unique and iconic place. Competence was in addition hard, with Mattel and Hasbro in the market, hardly LEGO sustained its powerful position.If we focus, for example, in the strategy that they carried out between 1995 and 1998, an interesting particular is that their objectives (become the best known global brand, increase the sales, etc. ) are posit in a long term direction. Another big story is that they wanted to expand the scope of their activities. They entered in new areas such as films, games and they also built new LE GOLAND parks. However, the turnaround attempts that happened between 1999 and 2003 forced this confederation to check their strategy. Different factors such as the changing environment, lead multiplication bear upon negatively LEGOs strategy.This shows that the uncertainty of strategic decisions is also decisive. If we mien at the exploring strategy model, we can see that the strategic decisions have affected the three main elements (position, choices and action). Regarding to the strategic choices for example, we can mention the corporate- train and the business level strategies. I think that LEGO in any casek some correct decisions, such as changing their relationship with retailers, renewing their supply strand 2. There are umpteen external features that have more or less influenced LEGOs strategy cultivation.One of this factors has been the competitors influence. Due to the high competitiveness in the encounter market, LEGO has to make a big effort in strategy in order to be one of the leaders of this industry. Other important veer is the supply and the distribution. The main reason of changing their strategy is that sales were seasonal and they had to adapt their supply system to this. Concerning the distributors we can state that retailers were putting too much pressure on the company, so the solution consisted on delivery their positions in order to achieve collapse results.Maybe one of the reasons of starting a digital strategy was the obsolescence of their products. There are other influences worth mentioning, such as the economic (crisis and bad cost management) and social (criticism of the public). 3. Improvements of the capital bodily structure were important resources that have enabled LEGO to achieve their successful results. If we focus on intangible asset resources, we can regularise that the reputation of this firm is key element, especially because they created an externalise of a family-run company, which give consumers, sha reholders, suppliers a feeling of trust.Kjeld played an important role. On the other hand one of the most important competences of LEGO is their brand. This is one of the oldest and violate known toy companies in the world, so we can say that their brand is iconic. In my opinion, this is the main core competence of LEGO. 4. I think that the several(a) indispensable and external factors responsible for problems were the key element in the schooling of those alternative strategies. They forced Kejld to take those decisions.The previous years were adverse, and there were internal problems such as financial and logistic difficulties, longer lead times, etc. Also external factors such as competitors uprising power and problems with suppliers were determinant in taking the strategic decisions. In my view, devil were the most important strategies focusing on cost and the supply chain and innovating. Managing the costs efficiently is very important, especially for companies that produ ce seasonal products. This gives security. figure provides a company an extra value.Inviting the consumers to participate in product development was an excellent idea, because in the toy market is necessary to have heaps of ideas. LEGO needed new, better and more ideas. 5. In order to approach upcoming strategy development, they could focus on one of the four strategic genus Lenses (strategy as a design, strategy as experience, strategy as ideas and strategy as discourse). If they chose the design lens, their managers would have to take rational decisions with a high drift of legitimacy such as those related to costs, their products marketing, etc.They also should take a look on economic performance, which is very important in LEGO Group. Also, they could focus in the experience lens. Focusing on this lens would be a possible decision, because LEGO has a lot of individual and collective experience. Although LEGO could focus on this lens, I personally think this would not be th e best option because LEGO needs innovation and new ideas for the incoming, and this lens states that the future has to be made based in the past. The next would be the ideas lens. This would be, with the design, the ens which better would fit with LEGO Groups strategy, and the one that they should develop most. I say this because in the market where this company competes new ideas are very important, in order to maintain competitiveness. Finally there would be the discourse lens, which I think could also be a good strategy for LEGO, but not the best, because we have to remember that LEGO doesnt want its managers to have too much power and legitimacy. Their work should be more focused on teamwork and cooperation between higher and lower power levels in the company.