Knudstorp Case Study

1. How did the information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? Knudstrop made some very important organizational changes to support their business strategies. The new organizational culture of Lego made it clear that the company should not sacrifice the profit for doing innovation, which was a practice often done in past. He also changed its employee pay structure and offering incentives which encouraged employees to strive for success. Knudstorp was quick to act and first made changes in the company's production process. Knudstorp encouraged designers to use the unused components in development of new products and design, thus reducing the number of unused

But by appointing the new CEO Jorgen Vig Knudstorp the comapny has started huge amount of money again. The strategies that are used by Lego are firstly, about cost leadership, Lego encourage designers to rescue old components in new products in order to save remarkable expense. Some distribution and manufacturing functions were moved to cheaper places. So that on low costing products they have some advantage. Secondly, the new business strategy Knudstorp brought slashed costs. In order to align with the business strategy Lego also made drastic changes to its organizational structure. It made employee pay structure in a way to improve innovation and creativity. The reuse of the classical components on the new products saved a lot of money. The designer must follow some principles while crating a new color, materials and images. The innovation of supply chain and transperent cost of new products made a contribution on Lego's road of revive. Information System strategy Lego's new business strategy of embracing the newer technologies and expansion into newer domains is evident in its involvement in Hollywood and entering into video games and virtual-interaction games markets. To change the customers of Lego products new strategies are made. Throughtout the case study there is emphasis on the various types of products Lego has addedto its product portfolio: the Lego line

What advice would you give knudstorp to keep Lego competitive, growing and relevant? To keep Lego competitive Knudstrop should always try to implement new toys and also of good quality. He should go with the technology in making new toys. He should always have a good organizational team and good number of employees to work for the success. He should try make toys for all types of genders and also try to make good qaulity and attractive toys for lower cost. To keep Lego growing Knudstrop should expand the company business. As of now the North America and countries of Europe have many stores of this industry. It should also try to expand the toy industry market in most parts of the Asia. The population is more in Asia and Knudstorp should plan to expand the industry business all over the Asian land. He should always use the newer technologies to keep the Lego toy industry in