LEGO (A): The Crisis Harvard Case Solution & Analysis

LEGO is a manufacturer of consumer products, which are related to the manufacturing and production of toys, online games and video games. In addition, the company is also involved in offering the creativity development products for children as well as other learning techniques and innovative playing.

lego (a) the crisis case solution

lego (a) the crisis case solution

The company sold online games, video games and other brick toys. Further, the target market of the company is the children of different age groups. As of now, the company has expanded its operations in more than 130 countries. The company is headquartered in Denmark with its subsidiaries in different countries like America, Europe, Australia and Asia.
The company was founded in 1932 and became famous all over the world for children's toys. The company was successful in making of piggy banks, wooden pull toys, trucks and cars, but the success of the company took a U-turn when it started manufacturing plastic toys including a truck that children could tear them apart and then reassemble them again. As of now, the company was in financial jeopardy and nearly on bankruptcy. Now the new CEO of the company, Jorgen Vig Knudstrop had to make a decision about the strategic decisions of the company to move forward.
Vision & Mission:
Vision of the company states that, "Inspire children to explore and challenge their own creative potential". Mission of the company is stated as follows: "To inspire and develop the builders of tomorrow".
Core values are the ones which support the company to achieve its vision and mission. These values became the essence of the company's objectives and helped the members of the companies to make good decisions about the business. The owner made the company on certain values which included: imagination, creativity, care, learning and quality.
Organizational structure:
Organizational structure defines the internal process and situation of the organization. In order to make organizational structure stable and proper, the business needs to focus on financial highlights of the business. Along with that, the company needs to focus on the entire process of the value chain to make improvements in the company as a whole.
Evaluation of the case reveals that the corporate management of LEGO uses functional structure in their business. Functional structure provides a clear understanding about the hierarchy of the business. In addition to that, by analyzing the lower level of a hierarchy in the company, LEGO also uses Divisional structure. Under this structure, there are five heads for each department and these heads need to report to the company’s CEO. The company has adopted two types of a divisional structure; one is geographical structure as their businesses are in different countries and the second one is product structure.
SWOT analysis:
One of the major strengths of LEGO group is their globally diverse market. The company has expanded its business in all the major markets of the world. In addition to that, the company has got strong brand recognition and is respected by most all over the world. Further, the company is focusing on adapting to market trends in the emerging markets. Further, the company has a good management team as it team is dedicated, hardworking and loyal.
One of the major weaknesses of LEGO group is their extra Standardize procedures and products which create monotony in the whole system. In addition to that, another weakness of LEGO group is the high prices which they charge for their products as compared to their competitors. The reason behind this high price is an extra premium quality of the product. Still, the company is achieving good profit margin which shows that there are no such substitutes available and the company is enjoying it by charging higher prices for its products. In addition to the higher prices, the company has weak internal communication which sometimes creates conflicts and discrepancies between the people.
There are so many markets available for expansion that present an enormous opportunity for LEGO Company. The company has already expanded its business in Europe and Asia and now the company can take advantage of expanding into other countries in the world as well. Further, the company is known to be a single product brand, with the passage of time this has become a weakness of the company therefore; the company should expand its product category by adding more products into it. The company should enter into other segments of the games and toy industry as well. Moreover, the company can avail another opportunities by launching its IPOs in the market as this will help the company to increase its value in the market. Further, the company can invent great and new tech toys with the help of technology as technological advancement in the world is at its peak.
One of the major threats for the company is from the competitors as they are continuously trying to penetrate in the company's construction toys segment. Dependence on the global markets for the company to be successful is another threat for the company. In addition to.....................

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