Veronica Grace G.

Labadan

IS 112 – IJ1

CASE STUDY 2
1. How did the information systems and the organization design changes implemented
by Knudstorp align with the changes in business strategy?
Knudstorp, the former CEO of LEGO, implemented several changes to align with
the company's new business strategy. These changes included streamlining the
company's supply chain management system, creating a centralized logistics unit,
and creating a cross-functional team to develop new products and improve existing
ones. He also changes the company's organizational structure, including flattening
the hierarchy and empowering employees to make decisions. These changes
helped LEGO to overcome its challenges and become a profitable company once
again.

2. Which of the generic strategies does Lego appear to be using based on this case?
Provide support for your choice.
LEGO is employing a hybrid of two strategies to maintain its competitive edge in
the toy industry: differentiation and cost leadership. Differentiation focuses on high-
quality items and a one-of-a-kind construction experience, while cost leadership
focuses on cost-cutting strategies. These strategies have enabled LEGO to attract
and retain customers while improving its financial performance.

3. Are the changes implemented by Knudstorp an indication of hypercompetition?

Defend your position.
The changes implemented by Knudstorp at LEGO can be seen as an indication
of hypercompetition in the toy industry. These changes include a focus on
innovation, cost-cutting, and a customer-centric approach, which helped LEGO to
introduce new products, reduce costs, and improve customer satisfaction.
Additionally, the changes reflect a constant need to adapt to changing market
 conditions, such as a cross-functional team and a flattened organizational structure,
which allowed LEGO to respond more quickly to market changes and introduce new
products. These changes are key strategies for surviving in a hypercompetitive
environment.

4. What advice would you give Knudstorp to keep Lego competitive, growing, and
relevant?

The Lego example emphasizes the importance of matching organizational structure

with information, technology, and commercial strategy. Knudstorp's advice to keep
LEGO competitive, growing, and relevant is to continue to focus on innovation, embrace
technology, expand the company's reach, focus on sustainability, emphasize digital
transformation, and invest in digital technology to streamline operations, improve
customer engagement, and create new growth opportunities. The company integrated
common tactics such as cost leadership, differentiation, and focus by increasing its
product offering and pursuing new customer categories. These tactics will assist LEGO
in remaining a relevant and profitable toy manufacturer.