Why did LEGO’s first turnaround effort (Ploughman, 1999-2004) fail and its second attempt (Knudstorp, 2004-2010) succeed? Compare the two turnaround efforts in detail.

Read:
Grant. Contemporary Strategy Analysis. Chapter 6. pp. 142-158 only.
Grant. Contemporary Strategy Analysis. Chapter 2, pp. 35-36, 45-50 only

Answer these question

– Why did LEGO’s first turnaround effort (Ploughman, 1999-2004) fail and its second attempt (Knudstorp, 2004-2010) succeed? Compare the two turnaround efforts in detail.

– On page 8, Knudstorp refers to LEGO’s “core”. What is the core of a company and how would you know if you are moving away from it? How would you characterize LEGO’s core?

– As Knudstorp, what would you decide regarding the new line of board games: (a) don’t go there because it’s outside the core, (b) launch one version that targets only boys, or (c) launch a version that targets both boys and girls? In reaching your recommendation, please consider the consequences for operations, marketing, and play experience.

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