Lego group

What did the LEGO Community benefit from the partnership with Flextronics and how could it use
this experience in the future constructively?

Mission of LEGO Group The mission is “inspire and develop the builders of tomorrow”. However it
changed its mission statement which expresses its corporate values too: “To nurture the child in
each of us”.

Vision of LEGO Group “Inventing the future of play” To accomplish its mission and vision Lego
uses both an innovation strategy as well as a growth strategy

The three horizons of policy are:

Horizon 1: Expand the main market as well as protect it

Horizon 2: Creating a merger between companies

Horizon 3: Building realistic alternatives

LEGO is one of the world's largest suppliers of toys. Its interlocking plastic bricks have made the
business a sensation by studying and improving when playing with the most creative toy makers in
the world. Every year, LEGO manufactures 14 billion plastic bricks for children to play with around
the world. LEGO enjoyed a strategic edge as the first toy manufacturer with interlocking plastic
bricks before the launch with Super Blocks. As its main rival, Mega Blocks opposed this by launching
items equal to LEGO.

"Global output efficiency requirements in four ways:

1) It is easy to pass Technology needs more time to construct skills;

2) a consistent training and education strategy should be established Present;

(3) local leaders who are familiar with the country's working culture shall be present; and

(4) a specific key figure framework shall be formed which ensures actual benchmarks / KPI between
the factories.

The executive vice-president of worldwide operations of Flextronics reported that the Relationship
'is characterised by intensive cooperation in the supply chain that offers strategic and productive.
Cost-savings to further boost the competitive business positioning of the organisation. We are
delighted to extend our network Partnership with the LEGO Community, as this enables Flextronics
to further diversify the market and improve Capabilities of plastic moulding in low-cost areas. The
group based its divisions on six main areas: automobile, computer, manufacturing, infrastructure,
medical, telecom and consumer, and worked with five business units composed of "strategic
technology and augmented services that are leveraged to build scalability and versatility and space
in all divisions and categories of customer goods."

The cost-saving justification. With the bulk of manufacturing in high-cost countries, management has
found considerable cost-cutting opportunities by the transfer of manufacturing to low-cost
countries. "The 50-year-old notion that Denmark and Switzerland were strong countries for
automatic development was effectively turned upside down," recalled Duedahl, a vice-president of
LEGO. The latest mantra has been: rapid outsourcing to low-cost nations

The manufacturing value chain of the LEGO Company was broken into the following
Steps: The most cost-intensive aspects of the supply chain were the production of the moulding
process, moulding, manufacturing, pre-packing and post-packing manufacturing and post-packing.
The new policies specifically distinguished between various retailer approaches and allowed the
business to rely further on the massive supermarket outlets that were gaining growing supremacy in
the toy industry. This helped to bring down delivery prices immediately, offered a more accurate
demand overview and, combined with reducing uncertainty, eliminated some strain from the supply
chain. The inefficient and inflexible supply chain was a crucial issue for a sound market platform to
be established. The degree of sophistication of organisations.

 "Be the best at generating value for our clients and sources of revenue."
 "Refocus on the value we bring to our clients."
 "Increase excellence in activities."

Challenges

 Output costs concentrated in largely high-cost nations

 Portfolio of over-diversified and complicated goods
 Under-performing supply chain in-house
 Negative financial consequences
· Heavy criteria for capital investment
· Elevated operating costs
 Stabilization and enhancement of tasks after a further point of transformation
 Balancing primarily internal supply capability with demands from the industry