Posted: September 18th, 2017

Strategy Report based on The Lego Group case study

Strategy Report based on The Lego Group case study
After leaving Sussex University, you are appointed as Strategy Executive for the LEGO Group in Denmark.
The well-known LEGO Group had ongoing success, led by the family, from the time it started to the 1990’s. Then, in response to emerging environmental threats, ambitious growth objectives were set. This was not successful and there followed a difficult period through to 2005. The case study gives you some background as to what followed. By 2010 the situation was much improved.

YOUR TASK:
The new CEO, Jorgen Vig Knudstorp, has asked you to advise him on the ‘right strategy for the continued success of the LEGO Group’. He asks you to prepare a 2,000 word (strict maximum) strategy report giving particular attention to these questions:
1. Critically analyse the external environment as described in the case and from your knowledge of recent developments. Explain the impact these factors have had on strategy development.
2. Identify their strategic capabilities (ie competences & resources) and show how these have been exploited to regain their successful position in the global toy market.
3. Use the internet to determine their financial strength & organizational purpose.
4. What strategies has the LEGO Group adopted over the years, as described in the case? Have these been successful? Evaluate with reference to models used in the lectures on strategy development & choice of strategy.
5. Looking at the LEGO Group today, what strategies would you recommend to ensure a successful future? You should research existing strategies from on-line sources.
SOME NOTES:
1. The case has been chosen to give you scope to use strategy models, concepts and frameworks from the lectures. So…. try to answer with clear references to the strategy theory. It is not necessary to search textbooks for models that have not been taught.
2. In addition to the case material, you should use the internet to research the global toy industry, the LEGO Group and their competitors. For example, you should look at the LEGO Group website(s) and their accounts to determine their the strength of their Balance Sheet.
3. Internet sources should include the financial media. Examples might include the Financial Times, New York Times, Wall Street Journal, LA Times & San Francisco Chronicle. It is strongly recommended that you use such sources rather than academic journals.
4.This is a business report, not an essay. Please read the Notes on Report Writing on Study Direct and write in the appropriate style for a business report. 20% of marks will be given for your written presentation skills & the use of an appropriate style.
5. You are encouraged to use a spider diagram (freehand is fine) to collect your thoughts and organize the order for the sections of your Report. This may be included at the back as an appendix.
6. The limit of 2,000 words must not be exceeded. Footnotes, table of contents and appendices are outside the word count but don’t use appendices for important data or analyses that you refer to in the main body of the report.
7. An Executive Summary is optional as the report is short.

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