Strategic Management and Lego

1st fact STUDYWinter boundary 2012/2013Student Aitor Martin SantanaProfessor Ravinder Kaur-LahrmannSubject Management Tools THE LEGO GROUP 1. In this casing I prevail identified some tonality characteristics that atomic number 18 in relation with the schema that LEGO has been following. In the 1970-1980 decades, environment was hostile. There was a huge rock oil crisis, and there were too much difficulties. However, LEGO brinytained its philosophy, and their meet of unique and iconic brand. Competence was alike hard, with Mattel and Hasbro in the marketplace, but LEGO sustained its supplyful position.If we focus, for example, in the system that they carried out in the midst of 1995 and 1998, an interesting fact is that their objectives (become the beat known global brand, increase the sales, etc. ) are set in a long term direction. An a nonher(prenominal) burning(prenominal) point is that they wanted to boom the scope of their activities. They entered in new areas such as films, games and they also built new LEGOLAND parks. However, the turnaround attempts that happened between 1999 and 2003 agonistic this company to check their strategy. Different factors such as the changing environment, lead times bear on negatively LEGOs strategy.This shows that the uncertainty of strategic decisions is also decisive. If we look at the exploring strategy model, we can perk up 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 remember that LEGO took some correct decisions, such as changing their relationship with retailers, renewing their supplying chain 2. There are many out-of-door features that have more or less influenced LEGOs strategy development.One of this factors has been the competitors influence. Due to the high gear competitiveness in the make for market, LEGO has to m ake a big effort in strategy in piece to be unmatched of the leaders of this industry. some other big issue is the supply and the distribution. The main evidence of changing their strategy is that sales were seasonal and they had to fit their supply system to this. Concerning the distributors we can state that retailers were displace too much pressure on the company, so the solution consisted on bringing their positions in order to achieve better results.Maybe one and only(a) 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 perverting cost management) and social (criticism of the public). 3. Improvements of the capital structure were important resources that have enabled LEGO to achieve their successful results. If we focus on intangible resources, we can say that the reputation of this crocked is distinguish element, especially because they created an image of a family-run company, which name consumers, shareholders, 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 better 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 calculate that the various interior(a) and external factors responsible for problems were the key element in the development of those alternative strategies. They forced Kejld to hire those decisions.The previous years were adverse, and there were internal problems such as financial and logistic difficulties, seven-day lead times, etc. Also external factors such as competitors rising power and problems with suppliers were determinant in taking the strategic decisions. In my view, two were the most important strategies focusing on cost and the supply chain and innovating. Managing the costs expeditiously is very(prenominal) important, especially for companies that produce seasonal products. This gives security. understructure 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 lots of ideas. LEGO demand new, better and more ideas. 5. In order to arise future strategy development, they could focus on one of the four strategic 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 grade 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 embodied experience. Although LEGO could focu s on this lens, I personally think this would not be the best option because LEGO take innovation and new ideas for the future, 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(prenominal) and lower power levels in the company.