Samuel Blair-Hickman - The Lego Group

Structural Factors

Organization

- The full name of this business is ‘The LEGO Group’.

- The inspiration behind this name, more specifically behind LEGO, comes from an abbreviation of
two Danish words being “leg godt”, which translates to “play well”.
- Some products this business created include:

a) Lego bricks - pieces of molded plastic that connect to each other to create larger shapes.
b) Video game titled “Lego Fun to Build. Launched in Japan in 1995. It is a kids educational game
where you can create lego projects digitally.
c) Movie titled “The Lego Movie” released in 2014, a high grossing film released in cinemas globally.

- The target market of LEGO involves young children. This is because of the simplicity and massive
potential for creativeness in their products that cater to children best.

Marketing, advertising and sales

The LEGO group uses many business marketing and sales strategies in order to spread its product to its
target audiences. The two I will be discussing here include market research and expanding.

The use of market research is evident with this business as they use information regarding their target
audiences and changing technologies to reform their structuring to keep up with current times. A significant
example of this is using knowledge that boys use their product more than girls, creating the LEGO friends
line aimed for females, to expand their common audience. Another use of this is enforcing digitization into
their products to keep up with modern technology. They have created numerous games, including LEGO
Batman, and also a few movies, including The LEGO Movie 1 & 2.

The LEGO Group has managed to expand their business over the decades, with its popularity it has managed
to get their products sold in over 100 countries. By expanding, they have much more opportunities to gain
more money with a larger potential market. An example of this is when LEGO convinced China to sell their
products which created a significant upsurge in profit in 2018 because of an increase of potential buyers by
around a billion.

The use of market research was extremely effective by creating a larger target market; and the use of
expanding was equally important by creating a larger potential market. Both of these strategies were vital to
The LEGO Group's success and show how important popularity and modernisation is in creating a massive
business.

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Quality Control

Quality is a vital aspect of LEGO’s promise, and they have many strategies in place to ensure they are
created to look and function properly. These include:

Effective Moulding Tools - With multiple LEGO manufacturers globally, supplied with extra precision-made
molds, it guarantees a consistent shape throughout each product.

Expert assistance - A large number of experts are hired to work in marketing, manufacturing and legal
issues. This allows more effective coordination, efficiency and idea generation leading to much better
quality items as a smarter, more targeted workforce helps things run smoothly.

Better Materials - Since 1963, a change in materials used to create the product was significantly reformed;
from wood based LEGO, to a durable plastic. Amongst material strength, this change also allows more
precision in molding, which could then be done to an accuracy of 1/200 mm.

Quality Control Staff - A department created fundamentally for LEGO’s quality control was created in 1963
with a workforce of 13 people. They work on ensuring the lego pieces are safe for children, work properly,
and look as they were intended.

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Environmental and Sociological Factors

Emerging Technologies

Many changes of technology have occurred throughout this business to reflect modern times, and to increase
fundamental upgrades in production such as price, efficiency, effectiveness, precision, speed etc. Some of
these will be shown below.

The hot runner mold - Invented in 1961 and functions by distributing the molten plastic through multiple
heated channels. This design is an improvement as it is a faster way to cool the plastic, and reduces plastic
waste.

Vacuum Molding - First used in 1965, the vacuum molding machine uses radiant heaters to soften the
plastic, and then powerfully sucked into the mold, and creates the LEGO studs. This design is much more
efficient as it transforms the plastic into the mold much faster, and of a better quality; and allows thicker
materials to be used, increasing its quality.

Tampo Printing - First used in the early 1970s, Tampo printing is used to decorate uneven or bending
surfaces.The decoration is pushed onto the exterior of LEGO pieces using a printing block that holds the
paint design on a rubber pad. This design saves time and money in comparison to the old version involving
pushing the LEGO against a special foil. This is because the tampo design is a lot simpler, also containing
less steps, and saves a lot more money as foil does not need to be expended after each print.

Semi Automatic molding machine - Created in 1950, an early innovation for the LEGO business was
created. They invented a molding machine that was semi-automatic that used pneumatic injections in order
to create the products. This saves a lot of time and money as less machines have to be built to hit quota, and
saves a significant amount of time as things are a lot more automated.

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Location

The physical location of the LEGO Group plays an important role in its viability and sustainability. The
company's headquarters is located in Billund, Denmark, which is where the company was founded in 1932.
There are several ways in which the location of the company affects its viability and sustainability:

Access to raw materials - Denmark is home to one of the largest clay deposits in Europe, which is a key
component in the production of LEGO pieces. This gives the company easy access to the raw materials it
needs to produce its products.

Proximity to suppliers - Many of the suppliers that the LEGO Group works with are located in Europe, and
having its headquarters in Denmark makes it easier for the company to work with these suppliers.

Skilled labor force - Denmark has a highly educated and skilled workforce, which makes it easier for the
company to recruit and retain employees with the necessary skills and expertise to design and manufacture
its products.

Sustainable practices - The LEGO Group is committed to sustainability and reducing its carbon footprint.
Being located in Denmark, which has a strong commitment to renewable energy and sustainable practices,
makes it easier for the company to implement these practices.

In conclusion, the physical location of the LEGO Group being located in Denmark gives the company
access to raw materials, proximity to suppliers, a skilled labor force, and a culture of sustainability, which all
contribute to the company's viability and sustainability."

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The physical location of a company and its proximity to transportation options can have a significant impact
on its access to resources and markets, and ultimately on its viability. In the case of the LEGO Group, there
are several ways in which these factors affect the company:

Access to resources - As mentioned before, Denmark is home to one of the largest clay deposits in Europe,
which is a key resource for the production of LEGO pieces. Additionally, being located near the coast
provides the company with access to shipping lanes, making it easier to import and export raw materials and
finished products.

Access to market - Being located in Denmark, the LEGO Group has easy access to the European market,
which is a key market for the company. The proximity to major ports and transportation hubs also makes it
easier to transport products to other parts of the world.

Logistics - The LEGO Group operates a complex global supply chain, and having a location that is
well-connected to transportation options is critical for the company's logistics operations. Being located in
Denmark, which has a well-developed transportation infrastructure, including highways, railways, and ports,
makes it easier for the company to move products around the world.

Sustainability - The LEGO Group has made a commitment to sustainability and reducing its carbon
footprint. Being located near transportation options that enable the use of more sustainable modes of
transportation, such as rail and sea shipping, can help the company reduce its environmental impact.

In summary, the physical location of the LEGO Group in Denmark, with its proximity to transportation
options, provides the company with access to resources and markets, supports its logistics operations, and
facilitates its commitment to sustainability. All of these factors contribute to the overall viability of the
company.

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Personnel and training

One position in the LEGO Group that is not in management is the role of a LEGO Model Designer. A
LEGO Model Designer is responsible for designing new LEGO sets and models, from initial concept to final
product.

The main responsibilities of a LEGO Model Designer include:

- Developing concepts and designs for new LEGO sets and models.
- Creating 3D computer models and physical prototypes of designs.
- Collaborating with other teams, such as the marketing and engineering teams, to ensure that designs
are feasible and meet the needs of the company.
- Participating in product testing and iterating on designs based on feedback.

To become a LEGO Model Designer, one is required to have the following training and skills:

- Bachelor's degree in a related field, such as product design or mechanical engineering.

- Proficiency in 3D modeling software, such as Autodesk Maya or 3DS Max.
- Problem-solving skills and the ability to think creatively.
- Communication and collaboration skills, as the role involves working closely with other teams.
- A deep understanding of the LEGO building system and product line.

LEGO Model Designers also typically have experience in the field of design or engineering, and may have
previous experience in product design, industrial design, or other related fields. They are often required to
have a portfolio of previous design work to demonstrate their skills and abilities.

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Changes in resource management or technical factors can have significant effects on the role of a LEGO
Model Designer. These can include:

Resource scarcity - If there is a scarcity of resources needed to produce LEGO sets, such as a shortage of
plastic, the role of a LEGO Model Designer would become more challenging. The designer would need to
find ways to create designs that use less material, or find alternative materials that can be used instead.

Adoption of new technology - The LEGO Group has been exploring the use of new technology, such as 3D
printing, to create prototypes and models. If the company were to adopt new technology on a larger scale,
the role of a LEGO Model Designer would likely be affected. The designer would need to have a working
knowledge of the new technology and be able to use it effectively in their work.

Increased focus on sustainability - The LEGO Group has made a commitment to sustainability, and this
could have implications for the role of a LEGO Model Designer. The designer would need to find ways to
create designs that use more sustainable materials and reduce waste. This could involve designing sets that
are more modular, or using recycled materials in the production process.

Shift in customer preferences - If there is a shift in customer preferences, such as a move towards more
complex or realistic sets, the role of a LEGO Model Designer would need to adapt. The designer would need
to be able to create more complex and detailed designs, and would need to have a deep understanding of the
needs and preferences of the company's customers.

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Bibliography

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The Lego Group history - about Us (no date) The LEGO Group history - About Us - LEGO.com. Available
at: https://www.lego.com/en-us/aboutus/lego-group/the-lego-group-history (Accessed: March 4, 2023).

1890-1929 (no date) LEGO® History - LEGO.com US. Available at: https://www.lego.com/en-us/history
(Accessed: March 4, 2023).

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Job areas - careers (no date) Home. Available at: https://www.lego.com/en-us/careers/job-areas (Accessed:
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https://www.lego.com/en-au/sustainability/people/ (Accessed: March 4, 2023).

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