...LEGO CASE STUDY Discussion Question: Q.1: How did the information systems and the organization design changes implemented by knudstorp align with the changes in business strategy? Advances in the field of information technology and introduction of new hi-tech form of entertainment such as tablets and gaming consoles had left Lego trailing in the entertainment field. Jorgen Vig Knudstorp was appointed as the CEO to revamp the company’s business process, organization structure and information systems. Knudstorp was quick to act and first made changes in the company’s production process. He encouraged designers to use the unused components in development of new products and design, thus reducing the number of unused components and reduced losses as the cost of production of each unit was very expensive. Lego created a new strategy to broaden the product range and target a new customer segment. Earlier Lego used to develop products which primarily targeted boys; with this new strategy they started developing products keeping a larger segment into perspective. They started developing products based on movie themes. Most drastic changes came in the organization structure at Lego, switching the employee pay structure, providing incentive for innovative product designs. Lego also started developing video games thus targeting a new segment of customers. All these changes in the business aspects of the company led to an increased revenue, increased demand and growth in the number of...
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...Chapter 1 LEGO Case Write-Up My key takeaways are 1) Company should combine business strategy, organization strategy and information strategy together in order to make a good innovation. 2) Keep uniqueness and develop new product to attract new segments is very important in a hypercompetitive environment. 3) A strong information management system can be very helpful. 1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? After Knudstorp changed Lego’s business strategy changed, Lego changes its organization structure. They encourage product innovation and sales by offering incentives. They decrease coast by move manufacturing factories to cheaper places. In order to attract more consumers, they develop new series for new segments and extend virtual world and movie business. They also engaged the communities who had already set up thousands of Web sites and blogs. Which also related to IT technology improvement. The information systems of Lego changes too. They develop new technology to support the product design and development, also the virtual and video games. They use the technology to insist the real-time feedback from customers. They created a modularized and standardized architecture for their information systems, making it possible to expand more quickly and add capacity and functionality, as it was needed. They implemented an integrated enterprise system as well. These systems helps...
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...LEGO case: Discussion Questions 1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? The day Knudstorp taken over the business. He made significant changes in supply chain links by reusing components in their new products. This process decreased the use of parts from 13,000 to 7,000 which in turn lead to reduction in expenses spent on buying component mold. Lego changed the way their components were produced earlier targeting children’s, they started creating products based on movie themes like Indiana Jones and Start wars. Lego group moved into video games, with Lego characters animated on Hollywood movies. Lego put on its next step by designing products aimed at young ladies. The games produced by Lego are compatible with playing on computers, play station and other few devices used for gaming, which held a huge attraction among children’s. The massive growth in business have put blocks on the information systems required to carry out the business. Due to huge customer demands the process of managing orders were seriously affected. In order to meet the demands, new employees were recruited, which in turn lead to staffing management issues. Managers looked at solving these problems by creating a modularized and standardized architecture for implementing a flexible information systems. This system is so flexible that it can be expanded to add volume of work and functionality...
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...Eric Hoffman Professor Rosanne Siemens Thursday, February 5, 2015 TA400 Ch1 Assignment – Case Study 1-1 LEGO 1. How did the information systems and the organization design changes implemented by Knudstorp align with changes in business strategy? The new business strategy was basically “results oriented”…, i.e., to ‘trim the fat’ wherever possible while not only marketing the best product available, but by expanding the range of it as well…and simultaneously expanding the business reach (and scope) of the Lego Brand. To that end, the company organization was drastically altered, ‘trimming the fat’ there by eliminating all personnel who were not ‘down with the new program’; by hiring ‘fresh blood’ in the design and engineering departments; and by implementing an “incentive-based” payroll structure. Finally, the IS structure, (as well as the Organizational structure), has been ‘modularized’ so that it can be almost instantly ‘reconstructed’, (much like the Lego toys themselves), in order to meet dynamically developing needs and goals. 2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice. Lego is primarily ‘focused’ on the “Differentiation” model, (pun intended), with flavors of “Cost Leadership” stirred into the pot as well. The latter comes into play via directing designers to ‘reuse’ nearly half of the basic building blocks in their designs, saving the expense of producing (and thus eliminating)...
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...the changes in business strategy? Knudstorp implemented a business scheme in such a way that it has changed the company entire loss history and regained its fame over the time. When Lego was a startup company it was in profits, it Gradually failed to turnout its customers, by implementing his strategic plan, credibly he manufactured almost 90% of products with same components and built the products to attract the customers. It was Successful and it gradually gave a rise in using of the Lego toys all over again. Designers were made to reuse the components in the new products. In this way he cut-shorted the number of products from 13,000 to 7,000. This reduction saved a significant amount to the company. He followed an expression which says “managing at eye level,” meaning his ability to talk to people on the factory floors, to engineers, marketers at home. He emphasized the importance of performance. Knudstorp followed a principle that everyone need to build a mind-set where non-performance is not accepted because there is no place to hide if performance is poor. Lego has introduced computer games with building blocks characters with playing heroes and villains. He introduced theme based building of games. The core theme of Knustorp’s plan is “nourishing a child”. 2. Which of the generic strategies does Lego appear to be using based on this case? Provide support for your choice. Lego was formulated with mainly...
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...organization design changes implemented by Knudstorp align with the changes in business strategy? Lego toys were outdated in the present entertainment world with the arrival of modern entertainment devices such as PlayStation etc. In 2004, Jorgen Vig Knudstorp was appointed as the new CEO to overcome the company's failure. He devised strategies in changing organization design and information systems which helped the company see profits within a span of five years. He encouraged architects to reuse components in new products which helped in sparing huge costs to the company. They created product strategy for adults and designed a line of Lego's aimed at girls thus attracting new customer segments. With a strategy to broaden their products they created products based on movies and also created animated Lego characters based on Hollywood movies. They engaged with online communities and blogs featuring Lego creations and embraced the communities who believed Lego as a way to create art, rather than simply building a toy( (keri E Pearlson)). With the competition very rapid in the market and to obtain profits, the culture within the organization changed a lot. Previously, the organization focused more on innovation and creativity but that changed when knudstorp made clear that results i:e profits was all that mattered. There had been a drastic change in the organizational structure too. Lego switched its employee pay structure and incentives were offered for appropriate product...
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...The LEGO Company in Asia 1 2 INTRODUCTION .................................................................................................................. 3 THE LEGO GROUP ............................................................................................................. 6 2.1 PRESENTATION ................................................................................................................ 6 2.2 HISTORY ............................................................................................................................ 7 STRUCTURE OF THE PROJECT ..................................................................................... 11 3.1 INTRODUCTORY PART .................................................................................................. 11 3.2 THEORETICAL PART ...................................................................................................... 12 3.3 EMPIRICAL PART ............................................................................................................ 12 3.4 ANALYTICAL PART ......................................................................................................... 13 METHODOLOGY ............................................................................................................... 14 4.1 CHOICE OF THEORY ...................................................................................................... 14 4.2 EMPIRICAL CHOICES .......................................
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...demonstrates how global marketing works, but also how it relates to real decisions around the world. This book offers a truly global approach with cases and exhibits from all parts of the world, including Europe, the Middle East, Africa, the Far East, North and South America. It provides a complete and concentrated overview of the total international marketing planning process, along with many new, up-to-date exhibits and cases, which illustrate the theory by showing practical applications. • Extensive coverage of hot topics such as glocalization, born globals, value creation, value net, celebrity branding, brand piracy, and viral marketing, as well as a comprehensive new section on integrated marketing communication through social networking. • Brand new case studies focus on globally recognized brands and companies operating in a number of countries, including Build-A-Bear Workshop, Hello Kitty, Ralph Lauren and Sony Music Entertainment. • Global Marketing ‘Svend Hollensen writes with real authority and insight having been involved in global marketing both as a manager and academic. His book provides a framework within which managers can develop their own approach to overseas markets, and is illustrated with cases and insights that aid understanding.’ Fifth Edition Global Marketing A decision-oriented approach Svend Hollensen Video cases featuring firms such as Nivea, Reebok, Starbucks, Hasbro...
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...electronic publications which help readers to understand and apply their content, whether studying or at work. To find out more about the complete range of our publishing please visit us on the World Wide Web at: www.pearsoned.co.uk Last A Head on Spread 000 Jim Blythe University of Glamorgan Essentials of Marketing Third Edition Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies throughout the world Visit us on the World Wide Web at: www.pearsoned.co.uk First published under the Financial Times Pitman Publishing imprint 1998 Second edition 2001 Third edition 2005 © Financial Times Professional Limited 1998 © Pearson Education Limited 2001, 2005 The right of Jim Blythe to be identified as author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without either the prior written permission of the publisher or a licence permitting restricted copying in the United Kingdom issued by the Copyright Licensing Agency Ltd, 90 Tottenham Court Road, London W1T 4LP. All trademarks used herein are the property of their respective owners. The use of any trademark in this text does not vest in the author or publisher any trademark ownership rights in such trademarks, nor does the use...
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...MANAGEMENT 12E KREITNER & CASSIDY INTERACTIVE ANNOTATIONS Annotation 1a It’s a Small World Question: How does this situation illustrate the pros and cons of economic globalization? Economic globalization provides manufacturers with access to parts from the around the world. With increased specialization comes increased efficiency and lower prices. However, this also leads to a higher level of dependence on a complex supply chain. When Iceland’s Eyjafjallajokull volcano erupted in April 2010 air traffic across Europe came to a standstill. This brought the supply chain to a halt as parts and supplies transported by plane were left sitting on the runway. The economic impact included costly manufacturing plant shutdowns and sales delays. Annotation 1b Back to the Opening Case Question: What evidence of the managerial functions and skills can you detect in the Zappos.com case? Reference figures 1.3 and 1.4. Of the eight functions of management there is clear evidence of Communicating as employees are invited to provide suggestions and feedback related to the core values. Staffing is also involved as they incorporate their core values into the hiring process, particularly the desire to hire people who are humble. Although less obvious, Leading and Motivating are present as well. Employees involved in defining the company’s core values are quite likely to find their work more satisfying and rewarding. Leadership is evident as there is a clear vision and...
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...PRODUCTION Editor: Penerbitan Pelangi Sdn. Bhd. In-house Editor: Ms. Koh Kah Ling Graphic Designer: Ms. Audrey Yeong Wawasan Open University is Malaysia’s first private not-for-profit tertiary institution dedicated to adult learners. It is funded by the Wawasan Education Foundation, a tax-exempt entity established by the Malaysian People’s Movement Party (Gerakan) and supported by the Yeap Chor Ee Charitable and Endowment Trusts, other charities, corporations, members of the public and occasional grants from the Government of Malaysia. The course material development of the university is funded by Yeap Chor Ee Charitable and Endowment Trusts. © 2008 Wawasan Open University First revision 2013 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from WOU. Wawasan Open University (KPT/JPT/DFT/US/P01) Wholly owned by Wawasan Open University Sdn. Bhd. (700364-W) 54, Jalan Sultan Ahmad Shah, 10050 Penang. Tel: (604) 2180333 Fax: (604) 2279214 Email: enquiry@wou.edu.my Website: www.wou.edu.my UNIT 1 iii Introduction to operations management Contents Unit 1 Introduction to Operations Management Course overview 1 Unit...
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...Toy Story - analysis of the Jot case study Adrian Sims of BPP Professional Education provides some initial analysis of the pre-seen material for the TOPCIMA Part B – Case Study exams on February 28th and May 24th 2012. I’m writing this article in late December 2011 to help candidates prepare for the March and May 2012 T4 (TOPCIMA) exams based on the pre-seen material for Jot- toy case. Some previous T4 cases have lacked fun, but toys are fun. I’m sorry, but I decided to combine this article with quotes from the three Toy Story movies (Disney/Pixar). The Toy Story quotes are in italics, a bit contrived, and probably of no use for the exam. They made me smile and gave me (and you) an excuse to watch the Toy Story movies again. But my newspaper today rather kills the joyful mood. It has the headline ‘Sales boom may not save High Street big names: analysts predict failures within days’. It reports that the December sales boom has been insufficient and has left many stores with unsold stocks and unable to pay their outgoings. This has afflicted markets as diverse as camping equipment and lingerie. This brings us to the heart of the Jot pre-seen material. Jot makes toys and is part of an industry for which November and December sales are critical. It depends on retailers to sell its products, but retail in Europe is facing terrible times as a consequence of the recession caused by the sharp reductions in government spending and collapse of bank lending. It has a perilous cash flow...
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...BUSINESS STRATEGY OTHER ECONOMIST BOOKS Guide to Analysing Companies Guide to Business Modelling Guide to Business Planning Guide to Economic Indicators Guide to the European Union Guide to Management Ideas Numbers Guide Style Guide Dictionary of Business Dictionary of Economics International Dictionary of Finance Brands and Branding Business Consulting Business Ethics Business Miscellany China’s Stockmarket Dealing with Financial Risk Future of Technology Globalisation Guide to Financial Markets Headhunters and How to Use Them Successful Mergers The City Wall Street Essential Director Essential Economics Essential Finance Essential Internet Essential Investment Essential Negotiation Pocket World in Figures BUSINESS STRATEGY A Guide to Effective Decision-Making Jeremy Kourdi THE ECONOMIST IN ASSOCIATION WITH PROFILE BOOKS LTD Published by Profile Books Ltd 3a Exmouth House, Pine Street, London ec1r 0jh www.profilebooks.com Copyright © The Economist Newspaper Ltd 2003 Text copyright © Jeremy Kourdi 2003 All rights reserved. Without limiting the rights under copyright reserved above, no part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the publisher of this book. The greatest care has been taken in compiling this book. However, no responsibility can...
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...Toy Story - analysis of the Jot case study Adrian Sims of BPP Professional Education provides some initial analysis of the pre-seen material for the TOPCIMA Part B – Case Study exams on February 28th and May 24th 2012. I’m writing this article in late December 2011 to help candidates prepare for the March and May 2012 T4 (TOPCIMA) exams based on the pre-seen material for Jot- toy case. Some previous T4 cases have lacked fun, but toys are fun. I’m sorry, but I decided to combine this article with quotes from the three Toy Story movies (Disney/Pixar). The Toy Story quotes are in italics, a bit contrived, and probably of no use for the exam. They made me smile and gave me (and you) an excuse to watch the Toy Story movies again. But my newspaper today rather kills the joyful mood. It has the headline ‘Sales boom may not save High Street big names: analysts predict failures within days’. It reports that the December sales boom has been insufficient and has left many stores with unsold stocks and unable to pay their outgoings. This has afflicted markets as diverse as camping equipment and lingerie. This brings us to the heart of the Jot pre-seen material. Jot makes toys and is part of an industry for which November and December sales are critical. It depends on retailers to sell its products, but retail in Europe is facing terrible times as a consequence of the recession caused by the sharp reductions in government spending and collapse of bank lending. It has a perilous cash flow...
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...partners, suited for a buy-out on longterm. If a firm already has international competences, it can overcome some of it’s competitive disadvantages by going into alliances with companies representing complementary competences. If you are ready for global marketing or not is bases on two things: 1. The industry of your business (how global is / can it be) 2. The preparedness for internationalisation 1 can be divided into mature; adolescent; immature 2 can be divided in local; potentially global; global Given the character of a company in both segments, one of the nine possible strategies can be chosen. You can find these in figure 1.1 on page 4 of Global Marketing. Difference between management styles of LSE and SME: Many LSE have begun downsizing their companies operations, so in reality, many LSE act like a lot of small differ operations. It can be noted that SME are working more on long term strategies, while LSE’s are working les on it. The consequence of both movements is maybe an action orientated approach, where firms use the strength of both orientations. What are the differences in starting points? LSE have traditionally bases their strategy on taking advantage of “economies on scale” by launching standardized products on a...
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