The Manufacturing Of Toys The Lego Company History

Introduction For about a century ago, the Lego Company has been a dominant player in the world of toy making that, aside being a household name, it has become synonymous with fun, creativity and learning. Starting off as a result of a Danish carpenter’s passion, Lego has risen to capture the hearts of millions of kids, teeming youth and fanatic adults in the form of creativity and games. However, managing the company itself has not been all fun as Lego’s history includes a myriad of failures, bankruptcy, innovations and counter-innovation. The journey to global dominance in the manufacturing of toys was enmeshed in several strategic decisions that young managers needs to learn from in decision making and implementing of innovation in organizations. The Lego Company-History In 1916, Ole Kirk Kristiansen, a Danish carpenter purchased a woodworking shop mostly to help people construct houses and furniture, this he did pretty well until the Great Depression around 1929 which saw fewer customers building houses and buying furniture, He then decided to focus on smaller, affordable wooden projects. His desire to please children later inspired him to begin producing toys and by the year 1932, Kristiansen and his small staff of apprentices has started making piggybanks, pull toys, toy houses and cars. Due to the state of the economy at that time, the business was not very profitable as farmers often traded produce in exchange for his toys. His son Godtfred Christiansen also joinedShow MoreRelatedLego case study analysis1362 Words   |  6 Pagesï » ¿Lego Case Study Analysis Pallav Mathur Q 1. What led the LEGO group to the edge of bankruptcy by 2004? By the end of 2003 Lego was already facing crisis owing to dipping profits and declining market pool for toys. Lego had planned to expand into markets beyond building toys and needed huge investment to be made in it. But it found difficult to compete when fad players and other toy manufacturers were giving them stiff competition in a market that already was supposed to be giving lesser returnsRead MoreEssay about Lego Case1303 Words   |  6 Pagesthe Flextronics offshore outsourcing project, LEGO had a very tight control of all the elements of the value chain. Their production plants were expansive and specialized which, in theory, would create a higher degree of standardization. Their Swiss factories only produced DUPLO toys and Technic products, their Danish factory solely produced LEGO System products, and the U.S. facility focused on American demands, while only 5 to 10 percent of the LEGO Group’s total production was outsourced to ChineseRead MoreThe Lego Group1284 Word s   |  6 Pages The LEGO Group: working with strategy. Date : 03 March 2012 Programme : BTECH-MANAGEMENT IV Question 1 Explain how the development of strategy at the LEGO Group reflect the key characteristics of strategic management outlined in section 1.2 and in the model in Figure 1.4? â€Å"Strategy is the long-term direction of an organization† (Johnson, Whittington and Scholes, 2011, p.3). The LEGO Group started with the manufacture of stepladders, ironing boards, stools and wooden toys and hasRead MoreThe Lego Group : A Company1535 Words   |  7 PagesThe Lego Group is a privately family-owned company based in Billund Denmark and was founded in 1932 by Ole Kirk Christiansen. Legos are plastic construction toys; the history spans nearly 100 years; manufacturing of these interlocking toy bricks began in 1949 with the creation of small wooden Lego bricks (developed into six pieces of 2 by 4 bricks that can be combined in 915,103,765 ways, creating systematic creativity) but has since then grown into an iconic brand with factories around the worldRead MoreEssay on Lego Case Analysis 1618 Words   |  7 Pagesï » ¿The Lego Group Case: The Crisis Prior to finalizing a strategic recommendation for Knudstorp and the Lego Group, I needed to gain perspective on the industry and internal factors that have historically interfered with Lego’s business model, and thus lead them to the point of bankruptcy. In Exhibit A, I used the Porter’s five forces model to help identify and label the threats, demands, trends and opportunities of the toy industry. While Lego faced many different types of challenges, market trendsRead MoreEssay on LOGO case study2462 Words   |  10 Pagesï » ¿Mgmt3347 individual case study TABLE OF CONTENTS Introduction The essay is a strategic analysis for LEGO Group. LEGO Group is a famous toy company in the world, which established in Denmark. LEGO Brand is not only the familiar logo, but also the expectation. LEGO acts as a guarantee of quality and originality. LEGO’s core values are imagination, creativity, fun, learning, caring and quality. The essay will show strategic analysis by identifying the industry, analyzing generalRead MoreLego s First Toy Product1511 Words   |  7 PagesLEGO was founded in 1932 by Ole Kirk Kristiansen in Billund, Denmark. Currently, the company is owned by Ole Kirk’s grandson Kjeld. The word LEGO comes from a Danish phrase, â€Å"leg godt,† which means â€Å"play well.† In Latin, the word â€Å"LEGO† translates to â€Å"I put together,† a perfect definition for the products LEGO would soon create. Introduction. LEGO started as a small carpenter’s workshop and has grown to become a global enterprise. It is now one of the world’s largest manufacturers of toys. LEGORead MoreCompany Profile : The Lego Group2181 Words   |  9 PagesPART 1: COMPANY PROFILE – THE LEGO GROUP 1. What Company did you select and why? The company I selected is the Lego Group. The company is well known for its popular construction toy brand, Lego. The company is still privately owned by the original family who established it in 1932 which is the Kirk Kristiansen family. Its headquarter is based in Billude, Denmark. The core product of the company, the Lego brick, is available in more than 130 countries around the world (Klausen, 2012). In 2014, theRead MoreEssay on The Lego Group Case3410 Words   |  14 PagesFounded in 1932, the LEGO Group is a privately held company headquartered in Billund, Denmark. The vision of Lego Group is to â€Å"inspire children to explore and challenge their own creative potential†[1] Lego now ranks 4th in the world as a toy manufacturer. The Lego Group employs nearly 9,000 workers and its own product, Lego Brick can be found in over 130 countries. The financial performance of Lego declined drastically through the 1990’s and early 2000’s. In 2004, the company accum ulated losses ofRead MoreLego Strategic Analysis2658 Words   |  11 PagesLego strategic analysis 1 of 5 http://www.oxbridgewriters.com/essays/estate-management/lego-strategic... Cookie Information  » Search all our free essays... The free essays that we publish on Oxbridge Writers have been written by students. They are not the work of our Oxbridge qualified writers. 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