Lego Company: Innovation, Entrepreneurship, and Business Evolution

This report examines the Lego Company's approach to entrepreneurship and innovation, focusing on the introduction of virtual outlets. It begins with a historical overview of the company, including its mission and the nature of its innovations. The report then delves into the organizational structu...Read More

Entrepreneurship and Innovation
INTRODUCTION...........................................................................................................................3
History of Lego Company......................................................................................................3
Mission of Lego......................................................................................................................4
The nature of the innovation and how it came into being, including details where appropriate
of key entrepreneurs underpinning the innovation.................................................................4
The organisational structure supporting the realisation of that innovation............................5
The networks established in the realisation of that innovation..............................................6
The impact of the innovation on evolution of the company and company performance.......7
The broader impact of the innovation outside the company, including any societal impact. 8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
The entrepreneurship and innovation are determined as an important in overall area related
to organisation as well as government. And innovation plays an important role within an
entrepreneurship. Innovation does not mean to generate something innovative while innovator
focuses on taking something that already prevailed, develop it and alter it in order to make it
superior and best for its user. For innovation, it is significant to possess creative idea in which
innovative products and services introduced within market for achieving favourable outcomes. In
present assignment, the Lego Company is taken. It is determined as a plastic construction of toys
that is produced by The Lego group. In current competitive environment, they are needed to
bring innovation to introduce innovative practices. In current report, the innovation is connected
with launching or introducing virtual outlets that assists organisation to offer convenience to its
user and achieving competitive edge. The complete process related to generating idea in addition
with innovation that is discussed in present report. Herein, in this report there is a discussion
regarding mission, history of company and the nature of innovation that is appropriate for
entrepreneurs. And also the organisational structure which provide support to innovation and
network which is established in relation of innovation. In addition to this, there is also a
discussion regarding effect of innovation in evolution of organisation and the performance of
company and broader effect of innovation outside the organisation as well as its social effect (Bu
and Cuervo‐Cazurra, 2020).
MAIN BODY
History of Lego Company
Lego Company is determined as a plastic construction of toys that is produced by The Lego
group. The organisation flagship product and Lego signifies different colour interlocking brick of
plastic that accompanying range of gears along with different parts.The history for Lego
company started within 1932 in Danish carpentry workshop and continues into 21st century as
well known as well as a profitable line related to construction of toys and connected goods and
services involving Lego board games, Lego video games, Lego films, Lego land theme park that
is significant effect on different areas related to popular culture. In year of 1947, Ole Kirk &
Godtfred produce a sample related to interlocking plastic bags that is manufactured by
organisation kiddikraft. Hillary fisher page focuses on designing Kiddicraft self-locking building

Brick. In year of 1939, they focus on hollow cubes of plastic along with four studs in top.
Therefore, the Lego group was invented in year of 10 August 1932 in Denmark. The Lego group
focuses on opening its workshop of Ole Kirk Christiansen in year of 1891-1958, the Carpenter
who is belong from Denmark begin to making or build wooden toys within year of 1932. In year
of 1934, the company called Lego that is derived from Danish phrase leg Godt that means play
well(Ferreira, Fernandes and Ratten, 2017).
Mission of Lego
The mission of Lego group is to inspire and improve builder of tomorrow &their purpose
is to inspire and improve children so that they think creatively &innovatively, reason
systematically as well as release its potential to shape its own future. Therefore, the main mission
of Lego group is only the best good enough. The main motive of company is to provide superior
quality of toys to its user for satisfying their need. It is also useful in retaining them for a longer
period of time. The innovation is connected with launchingof virtual outlets that assists
organisation to offer convenience to its user and achieve competitive edge. Thus, they bring
innovative ideas in order to provide convenience to customer and increase profit margin in future
time period.
The nature of the innovation and how it came into being, including details where appropriate of
key entrepreneurs underpinning the innovation
Theinnovation is connected with launching or introducing virtual outlets that assists
organisation to offer convenience to its user and achieving competitive edge. The complete
process related to generating idea in addition with innovation that is discussed. To accomplish
success as well as provide better satisfaction level to be customer, it is necessary to get
innovative ideas. There is different kind of innovation & creativity is maintained for generating a
good impression in front of user during particular phase of time period. The origin related to
innovation lies in big as well as small things related to everyday life(Mitra, 2019). And, there are
different kind of thing that is improve in order to improve in order to satisfy changing need in an
appropriate manner. It is assess that the main purpose of organisation is to bring innovative ideas
related to introducing virtual outlet that help in providing convenience to customer and it is also
helpful in providing service conveniently that help in achieving competitive advantage over
rivalries in the market. In addition to this, the main purpose of bringing innovation is to increase

sales and profit margin of company in future period of time. It is also helpful in increasing
performance level of the company in upcoming time period.
Innovation plays an important role in entrepreneurship. In competitive world, the
innovative ideas are helpful in achieving competitive advantage over rivalries in the market
place. It is helpful for entrepreneurs in order to increase their sales in future period of time. In
addition to this, the innovation means bringing something innovative increases it and changes it
in order to make better or superior for its user. And, the idea related to innovation help in
achieving competitive advantage over rivalries at marketplace. It is required that time as well as
cost assists in generate something innovative that make difference. And it is also analysed that
the creativity and innovation is helpful for entrepreneur in order to conduct different things in an
appropriate manner. In addition to this, through innovation, they focus on providing effective or
unique & specific services to its customers for satisfying them. It helps entrepreneur in
increasing performance level in future period of time by providing specific services that helps
them in attracting large number of user towards their services during the period of time. And, the
idea related to virtual store helps Lego group in selling toys in bulk quantity and it attracts a large
number of users towards their services and achieve competitive advantage over rivalries in the
Marketplace. It is also useful in increasing performance level of organisation in future period of
time (Ratten and Ferreira, 2016)
Virtual outlet is the outlet that is useful for selling and purchasing physical product by
using online application. They focus on selling as well as purchasing non physical products and
services as well as also digital product. Therefore, they focus on selling product by using own
website during the period of time.
The offline store is outlet in which the retailer selling product through a store location to
the individual person they permit patron's in order to try a product or goods prior to buy and may
provide professional fitting facilities.
How Virtual and Offline is differ that is given beneath:
Virtual outlet Offline outlet
Virtual outlet is the outlet that is useful for selling and
purchasing physical product by using online application.
The offline store is outlet in which the retailer selling
product through a store location to the individual person
they permit patron's in order to try a product or goods
prior to buy and may provide professional fitting
facilities.

Virtual outlet provide 24/7 facilities to its customer. Offline store provide services to its user for limited time.
Due to bring innovation related to provide services through virtual outlet, they providing
services 24*7 that is helpful in increasing sales of business organisation in future period of time.
It is also helpful in attracting large number of users towards their services during the period of
time.
The organisational structure supporting the realisation of that innovation
There are different kinds of organisation structure which is used for innovation such as
multidivisional, team, project as well as Matrix structure that is given below:
Multidivisional structure the organisation focuses on breakdown in separate division that
is handled by top management. The chosen organisation focuses on providing division executive
the freedom to handle operations in an independent manner. The primary benefit of this kind of
structure is that the management team can improve closer connection to its market by assuming
responsibility. The multi divisional structure is helpful for organisation that competes on global
market. Herein, the innovation is launched by organisation is virtual outlet that help company in
providing convenient product to its user.
Team structure the organisation does not need traditional change related to command in
which top management control overall activity in order to being successful. If team perform their
work independently in order to reach towards basic goal. Therefore, their main focus is to build a
structure in which team perform their work in proper manner. In addition to this, team diversity
is helpful in bringing thousands of innovative minds in order to perform their business in an
appropriate manner.
Project structure the big organisation involved in increasing culture by bringing various
department leaders together in physical environment. And, the organisation focuses on using
project structure because they focus on coordinating innovation in their product through
relocating member to research centre (Richter, Lang and Maresch, 2019).
Matrix structure herein, the organisation focuses on performing their work by using
Matrix structure. The focus is on reorganizing research department, collect innovative ideas
around the world and taking innovative ideas within business organisation.

Lego based in a different country so they adopt multi-division structure that signifies
different segment such as market, product as well as geographical. It is helpful for the company
to separate division which is handled by top management in order to perform work in proper
manner. Therefore due to execute their business in different countries it is possible for them to
bring innovation within business organisation during the period of time.
On the basis of above given different kind of innovative organisation structure, the
organisation is used multi-divisional structure in order to provide innovative products to its
customer in order to satisfy them
The networks established in the realisation of that innovation
The innovative network is determined as organisation structure through which company
executes innovation in more appropriate manner. This includes the process of innovation and it is
determined as integral part related to innovation culture. In addition to this, the innovative
network is very important in digitalization. Therefore, herein, the Lego group adopt different
theory and model of innovation in order to build network in realisation of innovation that is
given below:
Disruptive innovation it is considered as a concepts and goods that is launched innovative
value network in context of disrupting existing product and execute innovative goods. There are
different kind of innovation offer lower performance and not a superior enough to satisfy
customer. In reference of Lego group, their focus is on launching virtual stores in order to
provide convenience services to its user in order to retain them for a longer period of time.
Diffusion theory of innovation it signifies the theory related to practice that emphasized
on forecasting how innovative ideas is spread and all ideas is adopted as well as rejected by
different individual person. Thus, it is assess that Lego organisation use diffusion theory of
innovation in order to execute different activities in proper way. The main motive of Lego group
is to provide effective services by launching &introducing virtual outlet that provides
convenience to its user that helps them in increasing sales of business organisation and retaining
them for a longer period of time.
Therefore, it is assess that by using different theories and model related to innovation, it
helps Lego company in enhancing network in order to realise innovation within company that is
useful in performing different activities in proper way.

The impact of the innovation on evolution of the company and company performance
Innovation plays a very important role for organisation that assists in achieving growth and
success in future period of time. The significance of innovation in reference of Lego group is as,
the organisation deal with different kind of changes that happen within an organisation. The
primal factor that helps is technology that allows market to deal with all changing trends as well
as competition in an appropriate manner. Therefore, in reference of Lego group, they focus on
launching virtual store in order to cope with changing atmosphere and achieve leading position
around the world in future period of time(Singh and Gaur, 2018). The innovation can bring
significant benefit and it is critical for accomplishing success within business organisation. And,
it is analysed that the innovation imposes direct effect on company's performance and there are
different advantages of innovation that is going to be mentioned below:
Competitive advantage signifies the necessary advancement within capabilities which
provide as compared to its competitor of industry. Thus, the organisation have capability to get
ahead of competition is determined as a most appropriate reason of innovation. Therefore, the
successful innovative organisation is capable to keep its operation, product and services which
are relevant to need and want of customer & changing condition at market place. It is analysed
that innovation is useful in bringing specific product within the company and which is helpful in
achieving competitive advantage over rivalries at marketplace(Yan and Yan, 2016).
Maximize ROI the innovation is helpful in increasing rate of return in future period of
time. If the organisation focuses on bring innovative ideas in order to provide specific services to
its customers that help in increasing sales and profit margin of company in future period of time.
Thus, the innovation imposes direct effect on performance level of the company during the
particular phase of time period.
Increase productivity economic growth and development is driven through innovation as
well as technological development that reduce production cost and increasing higher level of
output. And, the Lego group focuses on launching virtual outlets that help in providing
convenient services to its customers that help in reducing cost and time of user that imposes
direct effect on performance and productivity level of the company. And, it is assess that
innovation impose direct effect on performance level of the company during particular phase of
time period.

The broader impact of the innovation outside the company, including any societal impact
The innovative technology within society can help in promoting higher quality of life that
generates community which follow scientific advancement. Theinnovation imposes direct effect
on growth and success during particular phase of time period. The social innovation are
determined as a social practices that purpose is to meet social requirement in proper way than
existing solution for instance working condition, providing healthy working environment to its
user in order to satisfy them during particular phase of time period.The innovation assists
organisation in context of job as well as economic growth. It is assess that the world economy is
double in size by 2050. Due to technological improvements, there are around 1 30 million jobs
that is created by 2022. And, it is also assess that the innovation imposes direct effect on external
environment of organisation. The innovation which is drink by Lego group is useful in product in
taken conveniently in order to increase sales of organisation in future period of time. It is also
helpful in increasing the standard of living of society in upcoming time period.Innovation help in
bringing positive culture within an organisation, increase capability to acquire, generate and
make appropriate adoption of competency and knowledge for the practices related to innovation.
They can understand in building culture of regular learning growth and its personal improvement
during the period of time(Wagner, 2017).
CONCLUSION
On the basis of above given assignment, it is assess that the entrepreneurship and innovation
is important in overall area related to organisation as well as government. And innovation plays
an important role within an entrepreneurship. Innovation does not mean to generate something
innovative while innovator focuses on taking something that already prevailed, develop it and
alter it in order to make it superior and best for its user. For innovation, it is significant to possess
creative idea in which innovative products and services introduced within market for achieving
favourable outcomes.

REFERENCES
Books and Journals
Bu, J. and Cuervo‐Cazurra, A., 2020. Informality costs: Informal entrepreneurship and
innovation in emerging economies. Strategic Entrepreneurship Journal, 14(3), pp.329-368.
Ferreira, J.J., Fernandes, C.I. and Ratten, V., 2017. Entrepreneurship, innovation and
competitiveness: what is the connection?. International Journal of Business and
Globalisation, 18(1), pp.73-95.
Mitra, J., 2019. Entrepreneurship, innovation and regional development: an introduction.
Routledge.
Ratten, V. and Ferreira, J.J. eds., 2016. Sport entrepreneurship and innovation. Taylor &
Francis.
Richter, R., Lang, R. and Maresch, D., 2019. Social entrepreneurship and innovation in rural
Europe. Routledge.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision.
Wagner, M. ed., 2017. Entrepreneurship, innovation and sustainability. Routledge.
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal, 12(4), pp.1053-1077.