...Annual Report 2013 The LEGO Group CVR: 54 56 25 19 Financial Highlights The LEGO Group (mDKK) Consolidated Income Statement: Revenue Expenses Operating profit Financial income and expenses Profit before income tax Net profit for the year Consolidated Balance Sheet: Total assets Equity Liabilities Consolidated Cash Flow Statement: Cash flows from operating activities Investment in property, plant and equipment Investment in intangible assets Cash flows from financing activities Total cash flows Employees: Average number (full-time) Financial ratios (in %): Gross margin Operating margin Net profit margin Return on equity (ROE) Return on invested capital Equity ratio 2013 2012 2011 2010 2009 25,382 (17,046) 8,336 (97) 8,239 6,119 23,095 (15,489) 7,606 (84) 7,522 5,613 18,731 (13,065) 5,666 (124) 5,542 4,160 16,014 (10,899) 4,973 (84) 4,889 3,718 11,661 (8,659) 2,902 (15) 2,887 2,204 17,952 11,075 6,877 16,352 9,864 6,488 12,904 6,975 5,929 10,972 5,473 5,499 7,788 3,291 4,497 6,744 2,644 103 (3,466) 574 6,220 1,729 61 (4,535) (88) 3,828 1,451 129 (2,519) (233) 3,744 1,077 123 (3,477) (871) 2,712 1,042 216 (906) 558 11,755 10,400 9,374 8,365 7,286 70.1 32.8 24.1 58.4 114.4 61.7 70.6 32.9 24.3 66.7 134.9 60.3 70.5 30.2 22.2 66.8 133.4 54.1 72.4 31.1 23.2 84.8 161.2 49.9 70.3 24.9 18.9 82.3 139.5 42.3 The Financial Highlights for 2012 and 2013 are adjusted as a consequence of a change...
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...develop a set of long-term economic and social plans that would keep Denma internatio l ark onally competitive, despite its large pu ublic sector an costly welf nd fare spending However, s g. short-term rea action to the worldwide economic do e ownturn dom minated policy discussions. A long-stan y . nding debate about joinin the Eurozo was given new saliency when the European Ce ng one n entral Bank lowered its ra on ate “refin nancing opera ations,” which provided liq h quidity to the Eurozone, ju days befor Lars Løkke took e ust re e office. Denmark was a member of the Europ w r pean Union but had retain its own cu ned urrency, the k krone. Likew wise, plans for rmulated a year ago to ex xpand the Dan nish workforc by looseni labor rule and ce ing es reduc cing welfare benefits had b b become unpop pular as unem mployment in ncreased. An nders Fogh Rasmussen had left a mixed legacy. Denm d d mark benefite from a balanced govern ed nment budge little publi debt, and lo unemploy et, ic ow yment. But its internationa reputation had suffered from s al d contro oversies over immigration. As the lo r ongest ruling Liberal Part (Venstre) prime minist in g ty ter mode Danish hi ern istory, Ander Fogh had led a centerrs -right coalitio governme that developed on ent strict immigration policies. The policies m ese made it...
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...S LEGO GROUP: AN OUTSOURCING JOURNEY w 910M94 PhD Fellow Marcus Møller Larsen, Professor Torben Pedersen and Assistant Professor Dmitrij Slepniov wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2010, Richard Ivey School of Business Foundation Version: (A) 2010-11-12 PROLOGUE The last five years’ rather adventurous journey from 2004 to 2009 had taught the fifth-largest toy-maker in the world — the LEGO Group — the importance of managing the global supply chain effectively. In order to survive the largest internal financial crisis in the company’s roughly 70 years of existence, resulting in a deficit of DKK1.8 billion in 2004, the management had, among many initiatives, decided to offshore and outsource a major chunk of LEGO’s...
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...! ! ! ! ! ! ! ! ! ! ! ! The LEGO Case Study 2014 ! ! ! ! ! ! ! ! ! ! The A CONTENTS ! ! ! 1! ! 2! ! Introduction! ! ! ! ! 3! ! 4! ! 5! ! 6! ! 7! ! 8! ! Difficult start to the decade 2001.! Signs of Recovery 2002.! Hopes dashed - 2003.! LEGOLAND parks.! LEGO Brand Stores.! The Knudstorp Review.! Financial Focus - the ! Oveson addition. ! Back to basics and the limit to adjacencies. ! ! ! ! 9! ! 10 ! Developing the strategy ! why do we exist? ! 11 ! First the action plan - first ! things first. ! ! 12 ! Summary and Conclusions! ! 13 !Appendices ! ! 13.1 Knudstorp on! ! communication ! ! 13.2 References and slides The A 1 Introduction ! In 2014, LEGO® announced record results. In the financial year 2013, revenues had increased by 10% to 25.4 billion danish krona. Profits before tax were 8.2 billion DKK. The company had once again delivered an impressive operating margin of 33% before tax.! ! In US dollars, the company had achieved $4.5 billion of revenues and profits of $1.5 billion. Revenues had increased from just over $1 billion some seven years earlier. LEGO® had replaced Hasbro to become the largest toy company in the world second only to Mattel. ! ! In just eight years, revenues at the Danish toy manufacturer had tripled. The company had turned around a loss of 2.5 billion krona in the financial years 2003 and 2004 to an operating margin the envy of high tech stocks around the world.! ! ! ! ! The...
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...project is investigating and exploring the impact of outsourcing on one of the most iconic Danish companies (LEGO), which attracted our attention during the preparation of this project. We decided to focus on a single case study, because we felt that dividing our efforts by investigating more than one company, would not allow us to focus in sufficient detail on the domino effects that outsourcing can have on a singular institution. The main question of this project is “How could LEGO improve the Make-or-buy- decision and the relationship management when it comes to outsourcing”? In order to answer the main question, we must consider two sub-questions stemming from the main issue, namely: “How could LEGO improve the decision-making-process to outsource by taking more influencing factors into consideration?” and “What could LEGO have done differently in its relationship to the outsourcing vendor Flextronics”. We used the Case Study Research method to work on these questions. Doing that, we reviewed theories, which explained the phenomenon of outsourcing on a theoretical basis. After creating a theoretical framework and the database, we analyzed the case (LEGO) for parallels between the theories and their practical experience. Finally, we were able to drawn some conclusions to both the central and subsidiary questions initially posed. In summary, it can be said that LEGO did not take all aspects into consideration which the theories describe as being useful to...
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...LEGO - EMBRACING CHANGE BY COMBINING BUSINESS INTELLIGENCE WITH A FLEXIBLE INFORMATION SYSTEM History of LEGO Company The LEGO Group was founded in 1932 by Ole Kirk Kristiansen. The company has passed from father to son and is now owned by Kjeld Kirk Kristiansen, a grandchild of the founder. It has come a long way over the past almost 80 years - from a small carpenter’s workshop to a modern, to a global enterprise that is now, in terms of sales, the world’s fourth-largest manufacturer of toys. The name 'LEGO' is an abbreviation of the two Danish words "leg godt", meaning "play well". The original Lego toys started with a wooden duck. But the first LEGO automatic binding brick is their most important product. The products have undergone extensive development over the years – but the foundation remains the traditional LEGO brick. The Lego Group began in the carpentry workshop of Ole Kirk Christiansen, in Billund, Denmark in 1916. In 1961, Lego wished to expand sales to North America, but did not have the logistical capabilities to do so. Lego made an arrangement allowing Samsonite to begin producing and selling Lego products in the United States and Canada. On 7 June 1968, the first Legoland Park was opened in Billund. This theme park featured elaborate models of miniature towns built entirely from Lego bricks. The three acre (12,000 m²) park attracted 625,000 visitors in its first year alone. During the next 20 years, the park grew to more than eight times...
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...! ! ! ! ! ! ! ! ! ! ! ! The LEGO Case Study 2014 ! ! ! ! ! ! ! ! ! ! The A CONTENTS ! ! ! 1! ! 2! ! ! 3! ! 4! ! 5! ! 6! ! 7! ! Introduction! ! ! ! Difficult start to the decade 2001.! Signs of Recovery 2002.! Hopes dashed - 2003.! LEGOLAND parks.! LEGO Brand Stores.! The Knudstorp Review.! 8! ! Financial Focus - the ! Oveson addition. ! 9! ! Back to basics and the limit to adjacencies. ! ! ! 10 ! Developing the strategy ! why do we exist? ! ! 11 ! First the action plan - first ! things first. ! ! 12 ! Summary and Conclusions! ! 13 !Appendices ! ! 13.1 Knudstorp on! ! communication ! ! 13.2 References and slides The A 1 Introduction ! In 2014, LEGO® announced record results. In the financial year 2013, revenues had increased by 10% to 25.4 billion danish krona. Profits before tax were 8.2 billion DKK. The company had once again delivered an impressive operating margin of 33% before tax.! ! In US dollars, the company had achieved $4.5 billion of revenues and profits of $1.5 billion. Revenues had increased from just over $1 billion some seven years earlier. LEGO® had replaced Hasbro to become the largest toy company in the world second only to Mattel. ! ! In just eight years, revenues at the Danish toy manufacturer had tripled. The company had turned around a loss of 2.5 billion krona in the financial years 2003 and 2004 to an...
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...1. Introduction LEGO is a combination of the Danish words “leg” and “godt”, meaning “play well”. As their name and ideal, Lego has been beloved by the children as well as the parents for decades. Not only as plastic toy bricks, but also effective educational tools, the LEGO Company enjoyed continuous growth and broaden the global brand value. The LEGO brand moved to third place in 2002/2003 with only Coca-cola and Kellogg having greater respect among families with children. Even though as the overall toy market faces challenges, LEGO’s revenue and profits are increasing rapidly, especially since 2005. This profitability didn’t change even in the current recession in the global market. The LEGO Group achieved record-breaking profits in 2011 that secured the health of the company. Interestingly, not far from this climb, the LEGO Group had a deep retreat in the late 1990s and the beginning of the 2000s. Major strategic efforts such as theme parks, Clikits craft sets (marketed to girls), Galidor (an action figure) couldn’t respond to management teams’ goal, and brought failure. As a result the LEGO group created bad financial results: their profit margin was -2.5 and Return on equity was -3.5 in 1998. What intrigues me, as one of thousands of enthusiastic users of its products, is a simple curiosity about what kind of sustainable efforts could enable the LEGO to survive from the turbulent recession and gain even better market share. In order to observe the effective management...
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...LEGO as we know it today first came into being in 1949 when Godtfred Kirk Christiansen used a “new” material – plastic – to create simple four and eight stud building blocks. Today, LEGO has turned into one of the most famous toy brands in the world. The aim of this case study essay is to asses the macro and micro environment in which LEGO is performing today. Micro Marketing Environment The micro marketing environment is defined as “the forces close to the company that affect its ability to serve its customers – the company, market channel, firms, customer markets, competitors and publics, which combine to make the firm’s value delivery system” (Kotler, Wong, Saunders and Armstrong, 2005) One of the most notable things concerning the micro environment of LEGO is that it is viewed as a strong brand. It been part of the toy market for so long, that grandparents and parents can remember playing with the toy as a child, and so often feel they have a relationship or bond with the product. The brand has also infiltrated many markets world-wide, and its fame is instrumental in its continued success. The case study states, it’s the only European company to enter the worlds Top Ten toy manufacturers. The product also has a unique selling point. The toy of LEGO is aiming to capture a creative imagination and also enable it to stand out in the market of dolls, cars, computer games etc. It is promoted as a “system of play”, which can be a strong selling point when trying to compete...
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...of Marketing Management – Case Study of LEGO Chapters: • Introduction ------------------------------------------------ 3 • Company Background ----------------------------------- 4 • Marketing Focus------------------------------------------- 5 • SWOT Analysis -------------------------------------------- 6 – 7 • Time Series Analysis ------------------------------------- - 8 – 9 • Product Analysis ------------------------------------------ -10 – 11 • Suggested Marketing Plan --------------------------------12 – 13 • Conclusion --------------------------------------------------- 14 • References --------------------------------------------------- 15 INTRODUCTION – For a company that has firmly established its foothold for the last 75 years, developing a futuristic three – year marketing plan involves critically analyzing the current marketing strategies and stating new strategies to be implied in the next few years. In this paper, four current marketing development plans namely SWOT Analysis, Time Series Analysis, and Market Product Analysis are dealt in a detailed way. Awarded the “Toy of the Century” at the end of the millennia, LEGO Group has nurtured generations of children and pre-teens with its creative and learning construction blocks. Over the years, LEGO has developed newer version of their products...
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...Table of contents Abstract……………………………………………………………………….page 1 Introduction…………………………………………………………………...page 2 Basic green concept…………………………………………………...page 3 The importance of green business………………………...…………….page 3 Methodology…………………………………………………………………..page 4 Results…………………………………………………………………………page 5 Company 1……………………………………………………………..page 6 Company 2……………………………………………………………..page 7 Company 3……………………………………………………………..page 8 Company 4……………………………………………………………..page 9 Company 5……………………………………………………………..page 10 Discussion……………………………………………………………………...page 11 How a company be green to the environment?......................................page 12 Do a company have obligation to be green?...........................................page 14 Can a company become “green” while gaining...
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...NEW MEDIA PAPER NEW MEDIA PAPER COMSTOR | COMSTOR | Brandgagement michiel hutten 2054625 Brandgagement michiel hutten 2054625 2014 2014 Table of Contents Introduction 2 Chapter 1: Business description 3 Chapter 2: Brandgagement 4 Examples of succesfull brandgagement 5 Chapter 3: Applicability Comstor 7 Roadway for brandgagement 7 Recommendation 8 Bibliography 9 Introduction In this report the possible applicability of brandgagement by Comstor is further clarified. The first part of this report contains a business description of Comstor. In the second chapter brandgagement will be explained. What is brandgagement? Which companies are using brandgagement at the moment? What are the benefits of brandgagement? What are the costs to introduce brandgagement by Comstor? When brandgagement is explained, the applicability for Comstor will be outlined. Finally there will be some recommendations. Chapter 1: Business description This chapter provides a description of Comstor. There is a description of the core business, the Westcon group and the turnover. We will also take a look at the competitors and the global activities of Comstor. Comstor is the leading Distributor of Cisco's advanced networking products. Comstor also sell a number of other brands, but the main brand they sell is Cisco. Comstor provides expertise and experience at each stage of the sales process, including consultancy, design, implementation and support for single...
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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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...Niels Laasholdt Steen Sloth Gitte Størup Marianne Poulsen BUSINESS ECONOMICS – AN INTRODUCTORY CASEBOOK FOR THE COMMERCIAL UPPER-SECONDARY COURSE (HHX) 1 BUSINESS ECONOMICS – an introductory casebook for the commercial upper-secondary course (HHX) © 2005 the authors and Systime A/S Copying from this book is only permitted subject to agreement between Copy-Dan and the Danish Ministry of Education. External editing: Knud Erik Bang Cover: Valentin Design Typeface: Adobe Garamond Pro 11/14 Graphical layout and production: Valentin Design 1st edition, 1st impression ISBN 87-616-1304-5 Skt. Pauls Gade 25 DK-8000 Århus C Tlf. (+45) 70 12 11 00 www.systime.dk Table of contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. Companies and their context . . . . . . . . . . . . . . . 1.1 Introduction . . . . . . . . . . . . . . . . . . . . . 1.1.1 The national economy . . . . . . . . . . . . . 1.1.2 Business economics. . . . . . . . . . . . . . . 1.1.3 Private finances . . . . . . . . . . . . . . . . . 1.1.4 The content of this textbook . . . . . . . . . . 1.2 What is a company? . . . . . . . . . . . . . . . . . 1.3 Types of company. . . . . . . . . . . . . . . . . . . 1.3.1 Production companies . . . . . . . . . . . . . 1.3.2 Trading companies . . . . . . . . . . . . . . . 1.3.3 Service companies . . . . . . . . . . . . . . . 1.4 Company functions. . . . . . . . . . . . . . . . . . 1.4.1 Functions in a trading company . ....
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...DesIgnIng the OrganIzatIOn fOr User InnOvatIOn Peter Keinz • ChristoPh hienerth • ChristoPher LettL Abstract: there is increasing consensus among practitioners and academics alike that we are in the midst of a paradigm shift from producer-centered and internal innovation processes toward user-centered and open innovation processes. This paradigm shift induces significant changes to the design of organizations. Even though the research field of user innovation has been developing over a period of more than four decades, there have been only occasional intersections with the research field of organizational design. In this article, we aim to provide an integrated perspective of the two fields. We first identify major user innovation strategies. We then derive the implications for each user innovation strategy on key dimensions of organizational design. Keywords: User innovation; organization design the point of departure for this article is the growing literature around the phenomenon that companies are in the midst of a paradigm shift from closed, producer-centered ways of innovating to open, user-centered innovation processes (Chesbrough, 2003; von hippel, 2005). to improve innovation performance and increase competitiveness, more and more firms are employing user innovation strategies (von Hippel, 2005). Such strategies have proven to be of high value to almost every type of company; both start-ups and wellestablished companies, irrespective of the industry they are operating...
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