Lego case study Essay Example

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Lego Group Case Study

  1. According to Broadbent and Kitzis, how can the CIO weave business and IT strategies together?

The authors present that CIOs need to integrate business requirements and IT assets in a manner that advances the corporate strategy. The integration of these factors does not determine the original nature of firm whether the firm is leading its industry, successfully competing or the business is floundering. The CIOs have to analyse the strategic business requirements, analyse the available or needed IT assets and bring together these assets and objectives in ensuring the organization accomplishes its defined requirements. Hence, balancing the business needs with IT assets contributes to the business having a competitive advantage, which results in improvement of business position. Hence, the IT assets have to be balanced with the strategic business objectives.

  1. How can the OGTM framework assist a CIO to set IT strategy?

OGMT framework is an iterative process that assists the management of an organization to develop and implemented an integrated strategic plan, which is aimed at defining specific actions that are required in delivering competitive advantage. The CIO has to analyses the objectives of the organization, create milestones, formulate appropriate tactics, and define the evaluation or evaluation metrics. The internal and external environment of the business guides the required IT assets and strategic utilization of these assets. It means a CIO has to analyse the different business conditions and with the help of other stakeholders, acquire or adjust the available IT assets to advance competitive advantage.

  1. The Lego Group was facing financial ruin in the early 2000s. How were this avoided and the current high growth and high profit organization of today established?

Lego Group took different strategies in redefining the business operations and management requirements. The CEO was changed and an individual with experience in different strategic capabilities adjusted the business operations. Jorgen, the new CEO, was able to introduce new ideas and approaches of doing business. Lego Group also improved its capital structure and focused on the core business because the problems in the early 2000s were associated with “non-strategic expansion” and an ineffective CEO. The business structure also changed to private company from the original family owned business. These changes enabled the business to continue incorporating strategic approaches that are common in the current world through capitalizing on the historical and cultural background of the business, and also aligning organizational assets effectively.

  1. Consider the Exploring Strategy Model (Figure 1.3) and apply it to the LEGO Group in 2015.

Exploring strategy model focuses on the strategic position, strategic choices and strategic action of an organization. The strategic position is based on the governmental and other environmental factors that influence the business activity. Lego Group returned to its culture and reviewed its original purpose in advancing business requirements. The strategic choices are premised on improving the business position and Lego Group achieved these requirements through aligning technology such as innovation and creativity in developing new products, and integrating the requirements of the customers in the developed process. The strategic choices also refer to the Lego Group decision to pursue the international market and readjust the corporate level strategy to reflect the changing business dynamics. The strategic actions include restructuring the business and resourcing the business through acquiring important resources such as human resource and information technology requirements. These changes and practice impact positively on the profitability of Lego Group. Integrating the views of the customers and others stakeholders also influenced the direction in which Lego Group took in 2015.

  1. The LEGO Case Study mentions the importance of on-boarding new employees, a high level of product innovation and a focus on cost, quality, and supply chain. How do modern enterprise information systems support these strategic priorities?

The modern enterprise information systems provide an organization with numerous tools and resources to advance the strategic requirements. For example, modeling and development of prototypes are easier compared with traditional approaches. Simulation and different experiments can be carried out through the use of technology. The information systems reduce the costs of these different processes because tests on a product can be done before taking the products to supply chain. The information technology improves supply chain through the provision of platforms such as online sales and marketing, and also it is possible to track the fundamentals associated with the supply chain. Therefore, information systems have improved Lego Group business operations to reflect the dynamics of the business.

  1. What features of the external environment have influenced strategy development at the LEGO Group?

Numerous external environment features have influenced business operation. Competition has forced the company to create products that attract the customers. The government has also created different legislations and regulations to guide the operational environment. The needs and expectations of the customers are different requiring Lego Group to innovate and create new products to reflect the requirements of the company. The business environment in which internationalization and globalization shape the business operations, and influences the strategy development requirements. Moreover, the availability of materials such as plastics, wood, and online based games also dictates the direction in which Lego Group has to employ. Hence, these different factors coalesce in defining the external environment factors.

  1. What resources and competences of the LEGO Group have enabled them to regain their successful position in the global toy market?

Lego Group has a long history in the development and patenting of the products and services. The historical component influences the entire business operation in attracting employees and also production processes. The human resource has an understanding of the business and the continuous development requirements. Having a historical background of the nature of the business and understanding the factors contributing to the decline of the business resulting in restructuring the business approach are integral in competence development. The internationalization of the business enabled the company to employ individuals from diverse backgrounds to support organizational tasks and objectives. Moreover, focusing on the core business and understanding the needs of customers also contributed to regaining their successful position.

  1. What alternative strategies were open to the LEGO Group in 2004? Why did the group choose the course they did?

The alternative strategies included entering into mergers and partnership with competing entities, selling the company or even changing the business course. Other alternatives included scaling down the number of employees and reducing the production process. However, the company decided to change the leadership through introducing a young and experienced individual. The individual was able to bring new approaches and strategies to support the business operations.

  1. Looking at the LEGO Group today, how would you approach strategy development to ensure success for the company in the future?

The business environment and the customer needs keep changing. Lego Group should analyse the costs of operations and determine whether it is viable to establish production lines in developing countries such as Indonesia and China. In addition, customization of the products depending on the targets should be capitalized. Through these processes, the cost of production is reduced while the customization based on customer requirements is met. The human resource development through training should be integrated into the operations to ensure human resource competence is improved. Relying and incorporating information technology in innovation and development ensures high-quality products targeting the customers are produced.

  1. As the CIO of the LEGO Group, what are your IT strategic priorities?

The technological world is changing, and new processes are entering the market. For example, the 3D printing technology can enable Lego Group to review prototypes before creating the customer product. The entire operations should be premised on IT and business objectives, through aligning and merging these processes. Furthermore, analysing different technological components and applying these information technology to the company ensures the company reaps the benefits. IT assets should be employed in the entire processes of Lego Group because it reduces the cost of production and improves the quality of production. Hence, the continuous inclusion of information technology systems in operational requirements at Lego Group will be my important approach in managing the business.