Since 1958, LEGO’s core and original product, composed of bricks with interlocking tubes, has represented a competitive advantage for the company. However, as the company operates in an extremely competitive and ever-changing environment, it decided to re-innovate itself by extending its products lines by adapting its unique product to several age segments, widely increasing the consumers target, from a infants to adults. Another strategic choice took by LEGO in order to maintain its status of toy leader, was to start outsourcing almost all of its production activities as the industry’s trend dictates. 2) What are the key considerations when outsourcing or off-shoring production? The most important thing when deciding to outsource of offshore production is finding the right partner.
First, they may choose to enter a new line of business by continuing to use it for making toys. Alternatively, they may refurbish the factory in order to increase its novelty item production and expand its current business. Issues and Alternatives The following issues pertain to the case: • According to ASC 805, if Fuzzy continues to use the newly acquired factory for making toys, will it be accounted for as an acquisition of a business or an acquisition of assets? • If Fuzzy intends to use it for making novelty items (its current business) instead, will this change the accounting for it under ASC 805? • What would the effect of IFRS be on this transaction if the acquisition is structured through Fuzzy’s foreign subsidiary?
On this episode of the Lego Simpsons it is more child friendly view of the spring field where everything is made by Legos. Because it is on the Lego reality theme where the characters is going to be Legos which let them do some more physical gags than they could use in a regular Simpsons episode. “This Episode of the Simpsons is funnier and humorous than ever” the producers said. The success of the Lego movie of this year makes a pre look for what it would be look like on the new episode of the Lego Simpson’s. On the trailer of this episode give us a glimpse on the new Lego Simpsons where they can do more extra ordinary thing that they can’t do on the previews episodes.
End Vision First, I think that implementing a good management plan by the upper level management is very important for KFF’s to succeed as a company. Having a replacement inventory coordinator who purchases the best possible products for all three stores, Also, having a person who controls the accounts payable, receivables, and finances that coordinate all vendors get paid on time will allow Kathy Kudler to focus more on duties that need more attention. For instance, implement a better website for the business will give better benefits to customer, therefore, sells will increase. The company needs to understand the difference between having a website and having an effective website. The website that is in place in KFF only displays the goods and services.
X-Box Strategy - Industry Analysis & Competitors ========================= 1.Game industry analysis Video games industry is seen as a maturing, competitive industry with practices and structure similar to other medias such as the movie industry, however, with a higher level of complexity. The volatility of its structure in console video games is a direct result of technological and business choice made early by the firms. Each firm releases a system incompatible with the others, this created a standard-based industry leading it to be an oligopolistic market at the hardware level. The markets are subject to significant network externalities thus each competitor hopes to reach the “tipping point” at which their system dominates the market and others are eventually forced out. The industry is very centralized.
A number of approaches were considered to help Lowe’s lower expenses and increase profits. One approach was to grow Lowe’s brand recognition through new advertising approaches, such as social media, which will get the most out of the strengths. To overcome some key flaws, Lowe’s has a duty to provide cross training to all employees in all sections and jobs of the store prior to working alone. In addition, the execution of a quality assurance program to standardize the Total Quality Management (TQM) of products would help Lowe’s address various weaknesses and threats. Some of Lowe’s strengths include having the second largest market share in the industry, their creative ideas classes and videos, and their corporate social responsibility.
Troubles in Toyland Discussion Questions: 1. In 1999 the context of the Toys “R” Us industry started to feel the effects of Wal Mart and Target which was now giving the toy giant a run for their money. The specialty retailer industry and toy industry in general must know what type of changes are occurring and the changes that would be coming up in the near future. Driving forces that could possibly be affecting this industry could possibly be the following; • Changes in Technology • Customer Behavior – (What are their needs, wants, and desires) • Competition – (What are they currently doing) • Economy –(What is the current economy looking like, are consumers spending more or looking elsewhere) 2. Jerry Storch had a very canny approach which his way of thinking was for the good of the company and to differentiate itself from the retail giants.
The company promoted its values from the beginning. LEGO’s first value statement “only the best is good enough” dates from 1933 and reflects the company’s commitment to quality. Later, seven LEGO characteristics ensured that all new products were clear manifestations of the LEGO brand, and today company insiders refer to these characteristics as “LEGO DNA”: • Hands-on and minds-on, • Challenging play, • Play that connects, • Facilitates creativity, • It is modular, • It is open-ended, and • Characteristic and recognizable design More recently the company’s values were expressed in the mission statement: “To nature the child in each of us” LEGO Faces Increasing Competition The LEGO Group grew slowly and steadily, reaching approximately 1 billion Danish kroner DKK) in sales in 1978. Over the next 10 years the company
The management of the company has decided to introduce changes to the business processes. The business process of the company would be enhanced through the use of latest technology. The goal of the management is to increase the sales revenue for the company by focusing more on the customer relationship management initiatives. Furthermore, the company also wants to analyze the analytical customer relationship management program. However, the final decision for the implementation of this analytical CRM project depends on the return on investment and the adequate payback period.
Mattel has also been slammed by negative press, which has maligned its reputation for product safety. Recent forays into the technology arena have left Mattel battered and gun-shy as they struggle to gain a foothold in the gaming market. Opportunities – Children still play with toys allowing Mattel to continue doing what it does best: make toys and games. More adults are finding wealth that allows for some degree of luxury spending: nostalgic collecting and toy purchases for the next generation of children extends the product life cycle of some products. Websites, social media, and electronic games are wide open opportunities that Mattel can enlist to increase sales of existing products and introduce new ones.