Strategic IT Management Report: Business Strategy and Lego Case Study

This report delves into the realm of strategic IT management, exploring the alignment of information systems and organizational design with business strategy changes, using the Lego Company as a case study. The report examines the impact of these changes, focusing on the shift in Lego's business model, its adoption of new technologies, and the resulting hyper-competition within the market. It details how Lego's strategic decisions, such as cost reduction and product innovation, influenced its market position. Furthermore, the report provides recommendations for maintaining competitiveness, relevance, and growth, including suggestions for employee training, cost analysis, and product quality improvements, offering valuable insights for business strategy and IT management.

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Information System and organizational design change alignment with changes in the
business Strategy
The information system and the change in the organizational design aligned properly
with the changes implemented in the business strategy. The utilization of 90% components in
just one designed was changed and almost same components was utilized in the new
products. The new business strategy imparted high benefits and changes in the organizational
design aided in achieving the profits. The methodology of the product was changed and new
products were introduced leading to huge gain of profits. Moreover, expanding the business
by covering the entire population proved to be highly beneficial for the organization.
Moreover, the Information system also provided accurate results.
Generic Strategy utilized by Lego
The Lego Company was centered on the creation of art rather than just building out
toys. Moreover, the Company used to incorporate creativity and innovation in the product at
the cost of profits. They used to provide the best quality products at a minimal cost thereby
suffering great losses to the Company. Moreover, the raw materials used were of the best
quality and were distinct which stated that the requirements of different products are different
(Negev et al., 2018). This would also lead to immense loss as huge amount of raw materials
were left unused.
Does the changes implemented lead to hyper competition?
There were drastic changes implemented by the new CEO of Lego, such as reduction
in the investment and huge gain of profits. Moreover, production of toys relating to star wars
and other characters gained huge market. Its involvement into the virtual world that
incorporated video games and virtual interactions also gained huge market. There were

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reduction in cost and introduction of brand ambassador introduced huge benefits to the
company leading to hyper competition in the market (Vasiltsova et al., 2015). In addition to
these, the involvement of the company in the movie making business further alarmed the
competitors, thereby leading to hyper competition in the market.
Recommendations to keep Lego competitive, relevant and growing
The company should provide proper training to the employees such that they would
gather better skills and design more innovative products. Moreover, proper cost analysis
should be done on a regular interval such to remain updated of the capitals invested and
revenue received. Moreover, the defaults must be identified properly and specific changes
should be implemented such that the company keeps on growing. The enhancement of the
skill set of the employees can also lead to vast growth of the company. The quality of the
product should be maintained properly and cost should not be too high.

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References
Negev, M., Berman, T., Reicher, S., Sadeh, M., Ardi, R. and Shammai, Y., 2018.
Concentrations of trace metals, phthalates, bisphenol A and flame-retardants in toys and other
children's products in Israel. Chemosphere, 192, pp.217-224.
Vasiltsova, V.M., Dyatlov, S.A., Vasiltsov, V.S., Bezrukova, T.L. and Bezrukov, B.A., 2015.
Methodology of management innovation hypercompetition. Asian Social Science, 11(20),
p.165.