case 11 rebuilding lego group through creativity and community 1

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LEGO Group came out of the red with positive results in 2005, and performance in the first quarter of 2006 is following the same trend. After a painful restructuring, LEGO has revived promising product lines and installed a new management team. With profitability back on track, the company can now re-focus on revenue growth. As Vice President of Business Development, you are charged with identifying potential growth opportunities for LEGO Group. After six months in the role, you have identified a number ways to leverage growth through current activities.

Because unchecked growth strategies in the past nearly led the company to bankruptcy, you anticipate some resistance from LEGO’s top managers. To alleviate their likely concerns, you want to sort through the challenges associated with exploiting several exciting new opportunities before making specific recommendations to the rest of the executive team.

Your analysis includes the following material:

  1. Review LEGO’s business strategy and the internal strengths it draws upon.
  1. Outline the strategic moves LEGO has taken to confront competitive threats in the company’s external environment.
  1. Summarize the strategic challenges facing the executive team at LEGO.
  1. Define the network of stakeholders which needs to be managed to achieve the company’s growth objectives.
  1. Establish a set of recommendations for managing the innovative efforts, being pursued both internally and through cooperative alliances, to drive the company’s future growth and to ensure that they are aligned with the vision and values of the organization.

To facilitate a discussion of your suggestions with the top management team, prepare an overview presentation which can be used to open a meeting with LEGO’s leaders, and frame the critical strategic issues which need to be resolved.

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