Lego Group: An Outsourcing Journey Harvard Case Solution & Analysis

In recent years, "and an adventurous journey from 2004 to 2009 he taught the fifth-largest toy maker in the world - the company LEGO Group - The importance of managing global supply chain efficiently. To survive the largest domestic financial crisis in nearly 70 years of management has been among Many initiatives, decided to offshore outsourcing and the lion's share of its production to Flextronics. This pursuit of rapid cost reduction benefits of search, the LEGO Group plans to license as many as 80 percent of its products, other than closing the main part of production in the country with a high cost. confident with the prospects of a new partnership, the company has signed a long term contract with Flextronics. This decision ultimately proved to have been too hasty, however. Only three years after the contracts were signed, LEGO administration announced that it would cease all cooperation with the sources of Flextronics. This a sudden change in its search strategy set LEGO company with several reservations. Despite the bright forecast, cooperation did not fulfill initial expectations, and companies need to understand why it happened. Secondly, what can LEGO management have done differently? "Hide
by Marcus Moller Larsen, Torben Pedersen, Dmitry Slepniov Source: Richard Ivey School of Business Foundation 16 pages. Publication Date: November 12, 2010. Prod. #: 910M94-PDF-ENG

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