Question

- What is your assessment of management moves during “the growth period that wasn’t” (1993-98) and “the fix that wasn’t” (1999-2004)? (Lego: The Crisis)

Answer 1

During the “growth period that wasn’t (1993-98),” the Lego Group was much smaller than other companies such as Disney and Nike and felt that it has untapped potential. Thus, the Lego Group launched a host of new themes and products in its brick-based product lines. Yet, despite such investments and management efforts to grow the top line,sales stagnated. I feel that the Lego Group should have assessed their unique strengths and enhanced such differentiating characteristics rather than just having their product lines and themes expanded.

During the “fix that wasn’t,” there were problems of stock-outs and slow-moving inventory. Simply restructuring the company and expanding the product portfolio did not produce the desired results. They should have created a strategy/business model that would help/fit the long run survival