How Lego's Corporate Values Reflect Its Internal And External Environments

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Introduction The following report discusses how LEGO’s corporate values reflect both its internal and external environments. This is done by identifying the added value that the organization offers to customers which gives them the competitive advantage against their competitors (Porter 2008). In addition, it also explains the core competency of LEGO’s linkages to the functions of their value chain. Value Generally, what attract new customers and keeps loyal customers with LEGO is the building of children’ creativity, imagination, fun, caring and learning. LEGO’s customer groups are mainly children and caring parents, which is apparently an extremely large market (Bros 2015). Parents love the thought of educating their children through creativity and imagination. Children also would love the idea of learning through other means other than through books (Tay 2014). PEST Analysis Political LEGO is constantly affected by political situations in countries like Denmark and Hungary. As they are distributing their products to more than 130 countries, local political decisions will affect them. (ALVES 2012) A reduction of the corporate tax level will have an increasing effect on the earnings of the LEGO group as it is a large part of expenses. Also, as LEGO produced their products in low waged countries, there are increasing awareness in on labour rights and therefore this is of great importance for the LEGO group because of their production facilities all over the world.

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