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Case Study: Lego's Toys

1051 Words5 Pages

1. How did the information systems and the organization design changes implemented by knudstorp align with the changes in business strategy?
Lego being one of the leading company for children’s toys from 1932 experienced worst phase of loss in 2004 i.e. $1 million per day. Then here comes the new CEO Jorgen Vig Knudstorp who came up with new strategy of business plans and he changed the organization structure in order to make innovative ideas. Plans like bringing cost cutoff and even reusing the waste components to build new products, it reduced the cost to 50000 euros resulting the components reduction. Lego was known for its blocks and components to build imaginative ideas in children’s and they planned to prepare new products based on few Hollywood movies which made them to also step into video games and animated characters, Earlier Lego was only targeting boys with their new products but later on changed the time line and even started designing products aiming girls. Knudstorp’s business strategy broadened the products and even introduced innovative products while on the other hand Lego was focusing on the cost, but major change came from Lego’s organizational structure i.e. changed the pay structure by offering incentives over innovation and sales. Lego also started moving to less expensive locations but the quality won’t change. When Lego started moving more in the virtual world and decided to enter into movie making business, to implement such kind of modulation and

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