Financial Statement
Transcript: CEO Jørgen Vig Knudstorp A former McKinsey consultant Came to LEGO Group in 2001 Became CEO in 2004 A series of distinct leadership approaches was needed to move LEGO onto path that is financially firm, more growth-oriented and open to the ideas of enthusiastic users. CEO needed to halt a sales decline, reduce debt, and focus on cash flow. Required tight fiscal control and top-down management.. Also, needed to build credibility and ensure approachability. Customer Participation PEST Analysis Economic Fertility rates renewable energy, and emit zero waste, In 2011, approximately 36 billion bricks to match an minimum efficient scale.... Big barrier to entry for the construction toy market... Only well established companies with advanced technology and product development processes can hope.... Strategic partnerships with companies like Lucas Arts and Warner Bros.... LEGO sells through both Internet & its own specialized retail stores... several promotional strategies Issues BORROW STRONGER CONTENTS from popular movie series, -> From 1999년to 2001년 LEGO's revenue were record breaking ! Freesia The newly developed Toys were too much like a Masterpiece and moreover they were not compatible with other lego blocks toys. Thank You! 4P strategy Organic Growth Diversify cultures by expanding operation to California, NY, Milano.. Cultural Differences between LEGO workers and Customers However, price per piece has declined in recent years... Technological LEGO have in recent years dramatically increased their points of sales... REDEFINE MISSION STATEMENT 1) SYSTEMATIC INNOVATION - HR Restructuring - New Management Team - target consumer LOYALTY - R&D 2) IT'S OWN IDENTITY -Recycle traditional product lines -Develop New ICONIC product lines -Digitalization 3) SYSTEMIC PLAY & Quality Assurance Marketing Strategy Process International Business April 24, 2014 LEGO's Past Failure NEW PRODUCT LINE WHICH IS COMPATABILE WITH THE TRADITIONAL LEGO BLOCKS LEGO's Innovation Story Marketing SWOT LEGO justifies its relative expensive products with their superior quality and designs LEGO blocks > FIGURE Toys ‘only the best is good enough’ Solutions LEGO's Management LEGO's History Political LEGO Operations Reinforce ( innovation process + LEGO’s fundamental principles ) = INCREASE IN PROFITS! From their failure with figure toys, LEGO learned that it needed to appeal to both traditional and new customers... Social factors But these had short life spans because they were dependent on the popularity of the movies series. same issue Galidor failed because of weak contents. Financial Statement 1997-2004 Financial Statement 2005-2013 Investment in P.P.E Net income 745 1397 968 1,186 1,478 1,264 709 457 61 -194 274 -863 366 326 -953 -1,931 171 -282 516 -812 799 868 -1,516 - 1,122 1997 1998 1999 2000 2001 2002 2003 7,616 7,680 8,526 8,379 9,476 10,116 7,196 6,704 2004 Operating income Sales revenue 237 214 423 7,027 2005 Investment in P.P.E Net income 316 399 368 1,042 1,077 1,451 1,739 2,644 1,290 1,028 1,352 2,204 3,718 4,160 5,613 6,119 1,405 1,471 2,004 2,902 4,973 5,666 7,606 8,336 2006 2007 2008 2009 2010 2011 2012 7,798 8,027 9,526 11,661 16,014 18,731 23.095 25,382 2013 Operating income Sales revenue