Leadership and Change in Lego Group since 2004

Leadership and change
INTRODUCTION......................................................................................................................2
1. Use leadership and/or change theory and also assess change mage in Lego Group since
2004........................................................................................................................................2
2. Discuss and evaluate Jorgen Vig Knudstorp’s leadership of The Lego Group. Use
leadership theory as the basis for your answer.......................................................................5
3. Using your understanding of leadership and change, and using the information in the
case study, what recommendations would you gives to the Lego Group to continue their
success in the future...............................................................................................................7
CONCLUSION..........................................................................................................................8
REFERENCES...........................................................................................................................9
Books and Journals.................................................................................................................9

INTRODUCTION
Leadership and change is very important for the success or growth of business
organisation. The leader focuses on encouraging its subordinate for accomplishing vision as
well as mission of organisation in stipulated period of time. Apart from this, the duty of
leader is to provide appropriate track to its employees for carry out their work in good way.
In this report it is necessary to evaluate or assess the changes which are made in the Lego
group since 2004. There are various changes which are made in the Lego group since 2004.
For example in retail sector there are 12 outlets that are open as per the strategy or tactics that
increases the experience level of customer in relation to Lego product. There are 15 outlets
which are increased in 2004 that increases the profit margin of the company. Apart from
these 15 shops in relation to test and there are various shops which is opened in parks. Their
main focus is to introduce 300 stores in order to achieve the objective of retail sector during
the particular phase of time period. Therefore it is necessary to bring changes within business
organisation. Their explanation regarding the changes as well is leadership Theory which is
also discussed in this report. Apart from this it is necessary to give recommendation to the
organisation in context of change which bring within business organisation during the
particular phase of time period (Holmes, 2017).
1. Use leadership and/or change theory and also assess change mage in Lego Group since
2004
There are several changes which are made in the Lego group since 2004. The
company focused on its core products and introduced the Duplo label at the end of 2004.
Since 2004, the production has moved to Mexico and the distribution has moved from
Billund to the Czech Republic. Lebo able to make these changes in bring back the company
in profitable position through change the CEO and focused on its core product which was to
make toys playable for all kids. Additional to this; to improve profits from available revenue,
company focused on improving its supply chain management through integrating four
business areas; corporate finance, corporate center, markets and products, and community of
LEGO group together. It has made strong ERP system of supply chain process, which helps
company in increasing its revenues by 11%; company also consolidated multiple HR
platforms into one global system which helps CEO in focus more in less time. The new
product lifecycle management (PLM) system boosts sales revenue of the company through
quickly launching its new products in the market.

They did this because; one of the main reasons behind the failure of LEGO was taking
advice from all experts and unnecessary putting their leg into innovation which was not
accepted by people. It gets diverted from its core objective which was to make toys playable
by children and also spread knowledge through creative toys. LEGO was known for its
creativity and have wonderful staff but this change costs much to the company and they face
failure until the end of 2004.
Company is hoping to keep away from adopting digital strategy in future preference
because according to CEO Jorgon Knudstorp; the transformation that had accompanied the
implementation of the Lego enterprise platform had developed important capabilities that
positioned the company to leverage digitalization.
The above change has altered the culture in Lego; like previously company was
focused on innovation but after 2004; the new culture of creativity helps organization to
recover its financial strength. LEGO starts thinking on global collaborative culture, which
brings all global branches with the help of ERP integration tool. Additional to this, company
focused on supply chain process through adopting integration system among departments
which helps it in making strong management system and avoid slow process and unnecessary
wastages. It changes the structure of organization by integration and builds coordination
between various departments and branches. It was emergent change; as company was to
declare bankrupt. Thus CEO reviewed the cause of failure and take immediate action to
recover from present deficit.
For example in retail sector there are 12 outlets that are open as per the strategy or
tactics that increases the experience level of customer in relation to Lego product. There are
15 outlets which are increased in 2004 that increases the profit margin of the company. Apart
from these 15 shops in relation to test and there are various shops which is opened in parks
(Borgmann, Rowold.and Bormann, 2016). Therefore, it has been analysed that Lego
Company launch 5 branded shop as well as four outlet shop. In addition to this, there are
various expansion in relation to brand store that also be expected by the owner of the
company since 2004. Their main focus is to introduce 300 stores in order to achieve the
objective of retail sector during the particular phase of time period. Position of Lego in 2004
was at diminshing level & it was due to their strugling nature of understadning what
conumers wanted. Moreover, the copmpany was founded because of principle of binding
bricks on basis of 'system of play'.

Further there were certain changes which were adopted like-
Strategies- They change their way of strategies of dealing with consumers as they
started using surverys for understadning needs of consumers.
Human Resource- new and efficient human resource were hired who uses different
types of techniques to hire potential employees. Moroever, they formulated new policies for
development of business.
Therefore it is necessary to bring changes within business organisation. To launch the
own brand outlet, there is a distraction to administration as well as to the core business. There
is different kind of skill which is necessary to achieve the objective of the organisation in
relation to its customer. There is various retailing shop such as Wal-Mart, Kmart that is using
own brand concept. Therefore the Lego business focuses on increasing their profit margin as
well as performance level in outlet for shops therefore it is necessary to have good skill that
help in increasing or expansion of the theme parks that provide the whole direction to the
organisation for success and growth in future period of time There are various leadership as
well as change theory which is applied by the organisation that is going to be mentioned
below:
Leadership theories
Trait theory It signifies the characteristic in relation to personality of leader in an
appropriate manner. The theory focuses on quality that must be present in the leader. The
quality such as intelligence, responsibility & creativity and so on that focuses on assessing
the social, physical as well as mental features of an individual person for increasing the
knowledge regarding what characteristic is considered as a common among leaders. They are
various traits which must be present in the leader such as patients,’ innovation this is related
to the personality traits and also the leader focuses on tasks related traits such as they are
allotted the work to its staff and also motivate them to perform them in better manner. As
Jorgen has a trait of creativity and thinking in a smart manner which helps company in grab
new opportunity from the market. It is significant for leader to possess the intellectual skill in
order to tackle the different situation in an appropriate manner.
It involves knowledge, capability as well as emotional attributes that must have in the
leader. Therefore the traits are considered as an important within business organisation in