Analysis of Leadership and Change in The Lego Group: Case Study

This case study delves into the leadership and change management strategies employed by The Lego Group, particularly focusing on the period since Jorgen Vig Knudstorp assumed the role of CEO in 2004. The analysis evaluates the changes implemented, such as the expansion of retail outlets and the application of various leadership and change theories like trait, contingency, and situational leadership, as well as Kurt Lewin's change theory. It assesses Jorgen Vig Knudstorp's leadership style, emphasizing the importance of listening, clear communication, and taking responsibility. The study also provides recommendations for the Lego Group's future success, supported by relevant theories and references. The report highlights the impact of strategic decisions on the company's profitability and market position, emphasizing the need for continued adaptation and innovation in the face of evolving market dynamics.

Leadership and change
TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
1. Use leadership and/or change theory and also assess change mage in Lego Group since
2004........................................................................................................................................3
2. Discuss and evaluate Jorgen Vig Knudstorp’s leadership of The Lego Group. Use
leadership theory as the basis for your answer.......................................................................6
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...............................................................................................................8
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 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 (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. 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 as well as 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. 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 order to build effective relation among the staff of the organisation in
an appropriate manner. As per their trait skill, 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 (Feng, Huang and Zhang, 2016).
Contingency theory According to this theory there is no specific style of leadership
which is superior for all the condition. It is necessary to bring changes according to the
situation or condition. The main purpose of this theory is to bring the changes in the
behaviour of an individual person as per the situation. It is necessary for leader to change
their behaviour according to the situation such as CEO of Lego group focuses on introducing
300 stores in future period of time that is completely based on the situation at market place
and also it increases the profit margin of the company in future period of time (Marshall and
Broome, 2016).
Situation theory this theory specify the style of leadership is completely based on the
maturity of an individual person. There are various things that are included in this theory such
as telling, selling, delegating as well as participating. The leader mainly focuses on

participating leadership style in which they provide opportunity to the individual person in
order to take decision which will be beneficial for organisation. It increases the confidence
level of an individual person in future period of time. In context of Lego group, the leader of
the organisation focuses on involving the employees of company in order to take effective
decision in upcoming period of time (Visser, 2017).
In addition to this, the Lego group focuses on bring changes within business
organisation. Therefore they discuss Change theory that is going to be mentioned below:
The change theory is given by Kurt Lewin in order to bring changes within business
organisation. In context of Lego group it is necessary to bring changes within business
organisation in order to achieve success as well as growth. There are three levels in this
theory which include unfreezing, change as well as refreezing that is going to be mentioned
below:
Unfreezing is considered as a process that includes bringing changes in the existing
behaviour of an individual person within business organisation. Here in the organisation
focuses on taking a step in regards to take changes within business organisation which is
good for success of organisation. Since 2004 Lego group focuses on introducing or launching
various outlets for increasing profit margin in future period of time (Hrabowski, 2019).
Change in this stage it is necessary to bring changes in thoughts behaviour as well as
feeling in order to increase the productivity level within business organisation. Therefore it
has been analysed that it is necessary to bring changes in order to increase profit margin in
upcoming period of time.
Refreezing stage the changes is considered as a new habit without this level it is not
easy for organisation to implement changes within business organisation that is necessary for
increasing profit margin of the company.
Therefore on the basis of above analysis there are various leadership as well as change
theory that is adopted by Lego group that is helpful in increasing profit margin in future
period of time.

2. Discuss and evaluate Jorgen Vig Knudstorp’s leadership of The Lego Group. Use
leadership theory as the basis for your answer.
Lego Company focuses on leadership that is under the Jorgen Vig Knudstorp’s. They
focus on the value as well as a product of business organisation. The leadership style focuses
on increasing the profitability of business organisation. There is the strategy related to
premium pricing that increases the sales of Organisation in future period of time. The core
value includes the quality of product, Legacy as well as value of money that must be
provided to the retail customer. Therefore they focus on adopting those kinds of leadership
style in which the customer is satisfied in good manner (Von Weitershausen, 2016). They
also offer innovative or unique product with customer at relatively less price in order to
attract them towards their product. They adopt situation leadership within business
organisation that is given below:
Situation Leadership theory this theory specify the style of leadership is completely
based on the maturity of an individual person. There are various things that are included in
this theory such as telling, selling, delegating as well as participating. The leader mainly
focuses on participating leadership style in which they provide opportunity to the individual
person in order to take decision which will be beneficial for organisation. It increases the
confidence level of an individual person in future period of time. In context of Lego group,
the leader of the organisation focuses on involving the employees of company in order to take
effective decision in upcoming period of time.
There are various ways through which the leader implement the leadership theories in
business organisation that increases profit margin in future period of time. There are various
leadership skills which is going to be mentioned below that must have in the leader in order
to implement the leadership style that is going to be mentioned below:
Listen and learn it is the responsibility of leader of Lego group to listen the problem
or issues of their employees in order to resolve them. It increases the productivity or
performance level of an individual person within business organisation. Therefore it is
necessary to have a skill in relation to listen to their employees is necessary for implementing
the leadership style within business organisation. In addition to this, it is also necessary for
leader to learn unique things that help in bringing in changes within business organisation
(Kulich, Iacoviello and Lorenzi-Cioldi, 2018).

Communicate clearly it is the responsibility of leader to communicate their messages
to its employees in good way. It helped them in adopting the effective leadership style as per
the situation arises at workplace.
Take responsibility here in the leader of Lego group focuses on taking responsibility
in order to perform different work in an appropriate manner. It increases the profit margin
and sales of business organisation in future period of time. The main purpose is to implement
leadership style in workplace for increasing profit margin during the particular phase of time
period.
Implementation of Situational theory by Lego group
It is the situation arises where leader adopts situational theory in which 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. 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.
There are various situations in which the organisation adopts situation leadership.
Therefore in case of destruction of the administration as well as business it is necessary for
organisation to have large capital in order to carry out the work in an appropriate manner.
There are various skills which are needed to have for achieving goal as well as objective of
business organisation. It is also helpful in increasing the satisfaction level of customer in
particular phase of time period. In context of Lego group, in case of lack of stock turn as well
as performance margin in relation to the product that is offered in outlet. Here in the
organisation adopts situation theory and tackle the situation in an appropriate manner during
the particular phase of time period (Bolden, Gulati and Edwards, 2019).
The other issue which arises at workplace and they adopt the situational theory. They
want to expand their business Administration magazine in 2003 and they continue suffer
losses of 30% within one year. They also decline regularly in 2004 with approx 10%.

Therefore here in the organisation faces loss of 40% sales during the particular phase of time
period so that they are in loss as well as it imposes negative impact on the company.
Therefore the top management of business organisation focuses on stability of sales they
want to cut down the cost of the product with 40% in order to attract the large number of
customer at in better manner. In addition to this there are various issues which is faced by the
customer that is communicated to the top management of the company. For establish the
situation they focus on lower down the cost of the particular product that help in increasing
the profit margin and in future period of time (Groves, 2020).
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.
There are various recommendations which are followed by Lego group in order to
continue success as well as growth of the organisation in future period of time that is going to
be mentioned below:
 It is necessary for the Lego group to implement innovative technology in order to
provide unique or specific product and services to its customers at relatively low cost
in order to gain competitive advantage over rivalries at Marketplace. The main
purpose is to lower down the cost of the product in order to increase the sales as well
as profit margin in upcoming time period.
 The other recommendation is that it is necessary for the organisation to make
appropriate strategy in order to offer the product that is more good or superior than
the competitive products that must be provided to its customers at affordable price. It
increases the profit margin and sales of the organisation in future period of time.
Therefore, the main purpose of leader is to make appropriate strategy in order to
assess the strategy which is implemented by the competitive firm and implement
premium pricing strategy in order to attract large number of customer at Marketplace.
 Furthermore they focus on launching the innovative store in global areas in order to
achieve leading position at market place. They also make appropriate strategy in order
to launch 300 outlets for achieving the goal as well as objective in relation to retail
sector which is necessary for success as well as growth of the organisation in future
period of time.

CONCLUSION
On the basis of above mentioned analysis it has been assessed that it is necessary to
bring changes within business organisation in order to perform their work in an appropriate
manner. The leader ship is very important for organisation because it motivates or encourages
employees to carry out their work in a 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.
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.

REFERENCES
Books and Journals
Holmes, J., 2017. Leadership and change management: Examining gender, cultural and ‘hero
leader’stereotypes. In Challenging Leadership Stereotypes through Discourse (pp. 15-43).
Springer, Singapore.
Feng, C., Huang, X. and Zhang, L., 2016. A multilevel study of transformational leadership,
dual organizational change and innovative behavior in groups. Journal of Organizational
Change Management.
Hrabowski III, F.A., 2019. The empowered university: shared leadership, culture change,
and academic success. JHU Press.
Visser, W., 2017. Sustainable frontiers: Unlocking change through business, leadership and
innovation. Routledge.
Von Weitershausen, I., 2016. German leadership between change and continuity: reflections
on the possible effects of “Brexit”. Global Affairs, 2(5), pp.513-520.
Kulich, C., Iacoviello, V. and Lorenzi-Cioldi, F., 2018. Solving the crisis: When agency is
the preferred leadership for implementing change. The Leadership Quarterly, 29(2), pp.295-
308.
Bolden, R., Gulati, A. and Edwards, G., 2019. Mobilizing change in public services: Insights
from a systems leadership development intervention. International Journal of Public
Administration.
Groves, K.S., 2020. Testing a moderated mediation model of transformational leadership,
values, and organization change. Journal of Leadership & Organizational Studies, 27(1),
pp.35-48.
Borgmann, L., Rowold, J. and Bormann, K.C., 2016. Integrating leadership research: A meta-
analytical test of Yukl’s meta-categories of leadership. Personnel Review.
Marshall, E.S. and Broome, M.E., 2016. Understanding contexts for transformational
leadership: Complexity, change, and strategic planning. Transformational Leadership in
Nursing: From Expert Clinician to Influential Leader, p.37.