MT 460 MT460 MT/460 Unit 6 Lego Case Study Analysis

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MT 460 MT460 MT/460 Unit 6 Lego Case Study Analysis

Unit 6: LEGO Group: An Outsourcing Journey Case Study Analysis Kaplan UniversitySchool of Business MT460 Management Policy and Strategy Author: Melissa Caswell (Richards) Professor: Dr. Lauren Hardison Date: 07/11/2016

LEGO GROUP: An Outsourcing Journey

Company Name: LEGO Group: An Outsourcing Journey

Topic of the Week: Outsourcing

Synopsis of the Situation

LEGO Group was established in 1932 by Ole Kirk Kristiansen. The word LEGO is formed from the Danish words “Leg GOdt” which interpreted means “play well”. Theirmotto is “Only the best is good enough” and this shows their commitment to quality and how they want only the best from their products.

The most important product on the company was first introduced in 1958 and has basically remained unchanged; brick which can provide limitless building possibilities. This had been the core to the company’s history and success and the LEGO brick had been rewarded the “Toy of the Century” design by both Fortune Magazine and the British Association of Toy Retailers (Pearce & Robinson, 2013).

However, in 2004 LEGO suffered an internal crisis and the company was close to bankruptcy. Their sales had fallen and the immediate explanation was the company’s general loss of confidence in its core product-the LEGO brick (Pearce & Robinson, 2013).

With its broadened portfolio, such as their licensed products like Star Wars and Harry Potter, LEGO became more confusing to customers and employees. With all of the different products it was clear that the bricks were not interchangeable and many differentbricks were needed for different designs.

MT 460 MT460 MT/460 Unit 6 Lego Case Study Analysis

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