How LEGO Built the Foundations and Enterprise Capabilities for Digital Leadership

Document Type:Case Study

Subject Area:Management

Document 1

One of LEGO Group’s four tactical main concerns is leveraging digitalization and it is basic to it being a global head in its industry. Question 1 The structure and logic of digital leadership of LEGO Group consists of a top management which is made up of four executive VPs and a CEO who make up the Management Board, a Corporate Management team which consist of 21 individuals at the level of Senior VP in addition to an external Board of Director (El Sawy, Kræmmergaard, Amsinck, and Vinther, Pg. 144, Para. The CEO’ task stressed on the survival of the company through the core brand and identity, and he did this by reducing production cost and shut down commodity lines that did not bring profit to the company (El Sawy, Kræmmergaard, Amsinck, and Vinther, Pg.

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144, Para. This means that the CDO helps map the digital abilities to the tactful priorities. Digital will not get the support or visibility it requires if it is not assisting the organization to get where it wishes to go. It also implies that the CDO can enlist engagement form other mangers, act as a coach, and re-establish options. What is more, the CDO will manage and observe the introduction of new technology innovations concerned with the content forum. Other new managerial officers might not be economies of scale or new functionality that digital abilities enable. 144, Para. However, after the transformation, the new product strategy stressed more on developing a defensible core of commodities (El Sawy, Kræmmergaard, Amsinck, and Vinther, Pg.

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144, Para. Furthermore, the commodity lines were both not core and profitable were to be closed, and the capital outlines was re-poised. Merlin entertainment purchased LEGOLAND parks and the company downsized to 5,000 members of staff form 8,500 workers. LEGO could experience risks going forward with such a broad diversity of digital offerings in the future. Nevertheless, I think LEGO can mitigate these risks by embracing digital diversity which gives room to more intelligibility of aimed markets including innovation. The best scenario here is to expand diversity initiatives exterior of the company so as to make the community great while also extending top line development. By changing the tact to involve outreach to markets that are under-attended to will propel business development. These efforts also expand the credit features to more buyers, thus supporting the LEGO commodities in the market.

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