Management Change of Lego

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[pic] MGNT 7070 Managing Change Case: Innovation at The Lego Group Lecturer: Mr. Simon So 11490209 Dong Chi, Samuel 11490802 Pang Siu Yan, Anna 11490772 Lam Siu Kit, Samuel 11490225 To Yu Pok, Byron 11490632 Tang Wai Yan A Brief History of the LEGO Company At its founding, the company took the name LEGO, a combination of the Danish words “leg” and “godt”, meaning “play well.” Only later did the company discover that the Latin root of its name refers to construction, a happy coincidence for a company whose core product is an interlocking system of building blocks. In 1947, the company moved from wooden toys into plastic, launching its first version of the now famous Automatic Binding Brick in 1949. Later, the bricks became the foundation for the LEGO System of Play, and in 1958 the familiar stud-and tube interlocking system was patented. The LEGO Company has sold 320 billion LEGO bricks, the equivalent of 52 bricks per capita worldwide. 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

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