Vision, Mission and Goals Case Study

Lego Toys: A Makeover in Corporate Philosophy

OR

Abstract:
The LEGO ® Group is the sixth largest toy manufacturer of the world. Although the Group was a great toy maker, it was not a great toy company. In the nineties, children’s interest in toys had gradually shifted from traditional toys to video games and Xbox’s, but LEGO stuck to its old philosophy of creating traditional toys. As a result, the company faced huge financial losses in 2003 and 2004. However, things changed for the better in 2004, when Jorgen Vig Knudstorp took over as CEO Of the company, and in 2005, the company saw its profits grow. The case discusses the various restructuring strategies undertaken by Jorgen. It also discusses his greatest contribution of transforming the corporate culture of a “do good” company to one that was more focused on profitability and sustainability in the long run

Pedagogical Objectives:

• To discuss the corporate restructuring strategies of Lego
• To discuss the Change management strategies of Lego’s top managemen

Keywords : Toy; Vision, Mission & Goals Case Study; Corporate culture; Leadership; Traditional toys; Corporate philosophy; Change management; Jorgen Vig Knudstorp; Godtfred Kirk Christiansen; Lego system of play; Legoland; Lego mindstorms; Lean process; Supply chain

Contents:

• Company background
• Problems faced by Lego
• Corporate restructuring
• The road ahead