Summary LEGO ( Based on the reading to answer the four questions) - Case Study Example

Case Summary LEGO Success attributes of different businesses and organization differ depending on various factors. Similarly, there are different evaluation criteria for different organizations and businesses, which ideally, depend on the operation mechanics of a particular organization. In the case of LEGO, the criteria for use in evaluating the different product lines and business operations include accountability, competition, and lessons learnt. Accountability assesses whether the activities that the organization gets involved in are in line with the organization’s policy and management. Competition as a criterion for evaluating the different product lines and operations determines what products are the competitors involved in making. Such a criterion goes in hand with lessons learnt, in which LEGO identifies the different areas that require improvement, aimed towards the improvement of future performance.
Changes in the marketplace for any product line determine the future that a particular product and organization takes. Regardless of the particular product line, changes are necessary for every organization, as a means of making improvements in areas that have failed, or those that never worked as per the required standards. Toy industry, is indeed an industry that requires significant changes in order to develop products that impress children more. Critical changes needed for the industry include increased innovation, which introduces new products, the establishment of an increased performance competition in the same industry. Additionally, changes contribute to the development of new technologies, an aspect that contributes towards the enhancement and improvement of efficiency and performance, as well as the improvement in quality of the products to meet the demands of the market.
LEGO is facing a significant number of internal issues, which are currently affecting the organization’s performance and competitiveness, and which require strategic planning to be effectively addressed. First is management. LEGO, previously, remained a successful player in the toy industry; however, with the continued growth of the company over the years, layers of complexities in operations have been added. Such challenges are attributes of poor leadership and management, and which can only be resolved through strategic planning. Another internal issue of great significance to LEGO is increased production wastes. Costs’ cutting is one of the best ways for an organization to increase its profit margins. LEGO currently experiences high production costs as the lack of considerations on production costs have resulted in increased wastes. It is critical that LEGO strategically plans its production aspects and minimize the wastes currently being realized.
Other than the internal issues, there are external issues that are currently affecting LEGO, and which require strategic planning to eliminate. Stiff competition among other players in the industry is significantly the success and profitability of LEGO. Some competitors have introduced toy produced with unique designs while others such as TYCO, built products compatible to those of LEGO, and, therefore, could fit best with the products of LEGO. As such, such competitors capitalized on LEGO for their success. Additionally, company acquisitions have as well been other external issues affecting LEGO requiring strategic planning. Walt Disney, for example, in the acquisition of Marvel increased its market scope by capturing the already established market by Marvel. Such occurrences have contributed to LEGO’s reduced success and performance, and require strategic planning to realize success. Read More