BUSI 1484 – Managing Approach

Portfolio 1

The LEGO Group Analysis

June 26, 2013

Term count: 1, 517

Table of contents

Title| Web page

1 . Application of the PESTEL analysis| several

2 . Using the Porter's Five Makes Analysis| 4| 3. Putting on the TOWS Matrix| 6

4. Conclusions| 7

a few. Figure| eight

6. References| 8

Through this assignment the LEGO Group are reviewed by using a PESTEL analysis (Turner, S., 2002, ), Porter's Five Causes framework and TOWS matrix, based on the information from the example " The LEGO Group: working with strategy” by Anders Bille Jensen, University of Southern Denmark, and options from internet.

Application of the PESTEL analysis: #1

CONTEXT| FINDINGS| POSITIVE IMPACTS| NEGATIVE EFFECTS

POLITICAL| Higher importance tax in a few countries, eliminated LEGO to these market segments before 1980's. | Profano has to outsource its development line in those countries, it can reduce the production price, making these products to be more competitive with rivalries. | Difficult to control intellectual real estate, and its supply chain. | ECONOMIC| Freelancing 80% from the products inside the Eastern Countries in europe and continue to be only twenty percent in its bottom in Billund. | Substantially reduce the production cost by outsourcing to developing countries as various other direct opponents. | Possibly unwelcome by their devotees since the product is not anymore produced by Danish labors. In the meantime, supply sequence and QC will become a setback towards the group. | SOCIO-CULTURAL| In line with the market research in 1995, demonstrated that children seem to mature earlier and demanding even more from the toys. | Lego has to shoot for strategic, innovative development rather than relying on yesteryear success. (2)| There is no total key intended for successful ideal plans. Virtually any major modify of business decision can face the risk of total failure of the firm. | TECHNOLOGICAL| In the past quarter of a century, the computer game has taken place in toy industries. The new generations has shifted their interested into digital gadgets from traditional toys and games. | The business has developed a technique in digital in 2009, with Warner Siblings. As an answer the developing demand in ‘new media' age| It is hard to seek to get a balance in running the ‘old' and ‘new' organization together. In the other phrase, the supervision must think as a Baby-Boomer and a Generation Y. | ENVIRONMENTAL| The buyers were not wanting to accept plastic products, if the company first producing Lego bricks. They preferred classical wooden instead of plastic types. | The plastic Seglar bricks got proven to be among the huge successful toy items in the 100 years. It is sturdy and easy to get mass creation. | The active ingredient of plastic is a by-product of petroleum, the industry highly infected industry in the World. On the other hand, wood product can be acquired from green forests, a sustainable source compare with plastic-type material. | LEGAL| The interlocking principle of studs and tubes was patented on 28 January 1958. (1)| Lego have sold millions components of bricks before five years, which demonstrated that the patent is the main asset of the group. | The future style which based upon this existing stud and tube interlocking system style is limited. As well as the patent will certainly expire sooner or later.

Application of the Porter's Five Forces Research:

This next analysis is an extract based on the situation study The LEGO Group: working with approach. The LEGO Group provides improved the corporation situation and historical accomplishment in 2008 and 2009, after a enormous declined in 1999-2003. The following paragraphs can analysis the business with Porter's Five Makes (Michael Electronic. Porter, 1979) #2 to spot the strong points of the five different competitive drivers in this particular industry.

1 . BARGAINING POWER OF SUPPLIERS

The main element of LEGO bricks are plastic and colorants. The plastic (ABS) that used by LEGO is exclusively given by the German born chemical...

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