Strategic Management and Lego

1st baptistery STUDYWinter term 2012/2013Student Aitor Martin SantanaProfessor Ravinder Kaur-LahrmannSubject Management Tools THE LEGO GROUP 1. In this case I have place some key characteristics that be in relation with the schema that LEGO has been following. In the 1970-1980 decades, surround was hostile. in that respect was a huge embrocate crisis, and there were in like manner a lot difficulties. However, LEGO maintained its philosophy, and their image of unique and iconic brand. competence was as well hard, with Mattel and Hasbro in the market, but LEGO sustain its powerful position.If we steeringsing, for example, in the dodging that they carried reveal between 1995 and 1998, an interesting fact is that their objectives (become the scoop out cognise global brand, increase the sales, etc. ) are set in a long term direction. Another substantial point is that they wanted to expand the sphere of their activities. They entered in naked as a jaybird areas mu ch(prenominal) as films, games and they alike built unseasoned LEGOLAND parks. However, the thong attempts that happened between 1999 and 2003 forced this companionship to visit their dodging. Different factors such as the changing environment, lead times touched negatively LEGOs dodging.This shows that the uncertainty of strategic decisions is also decisive. If we look at the exploring dodge model, we pot see that the strategic decisions have affected the three main elements (position, choices and action). Regarding to the strategic choices for example, we layabout mention the corporate-level and the business level strategies. I ring that LEGO took some correct decisions, such as changing their relationship with retailers, innovation their supply chain 2. There are many international features that have more than or less influenced LEGOs strategy organic evolution.One of this factors has been the competitors influence. Due to the spicy competitiveness in the play ma rket, LEGO has to come upon a big effort in strategy in browse to be one of the leaders of this industry. Other Coperni stand issue is the supply and the distribution. The main savvy of changing their strategy is that sales were seasonal worker and they had to adapt their supply system to this. Concerning the distributors we provoke state that retailers were putting too much pressure on the company, so the closure consisted on bringing their positions in separate to achieve better results.Maybe one of the reasons of offset a digital strategy was the obsolescence of their increases. There are other influences worth mentioning, such as the scotch (crisis and bad represent management) and social (criticism of the public). 3. Improvements of the capital structure were distinguished resources that have enabled LEGO to achieve their successful results. If we focus on intangible resources, we can aver that the reputation of this firm is key element, in particular because they created an image of a family-run company, which give consumers, shareholders, suppliers a feeling of trust.Kjeld played an important role. On the other hand one of the intimately important competences of LEGO is their brand. This is one of the oldest and better known toy companies in the world, so we can ordain that their brand is iconic. In my opinion, this is the main core competence of LEGO. 4. I think that the various internal and external factors liable for problems were the key element in the development of those alternative strategies. They forced Kejld to sate those decisions.The anterior years were adverse, and there were internal problems such as financial and logistic difficulties, longstanding 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, dickens were the most important strategies focusing on cost and the supply chain and innovating. Managing the cost efficiently is very important, especially for companies that produce seasonal products. This gives security. Innovation 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 slews of ideas. LEGO needed new, better and more ideas. 5. In order to approach future strategy development, they could focus on one of the foursome 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 burgeon forth rational decisions with a high patsy of legitimacy such as those relate 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 practicable decision, because LEGO has a lot of individual and embodied experience . Although LEGO could focus on this lens, I in person think this would not be the beat out option because LEGO needs innovation and new ideas for the future, and this lens states that the future has to be make 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 immortalize 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.