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Business Model Lego

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claire A

on 8 July 2013

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Transcript of Business Model Lego

Once upon a time...
Once upon a time, in a land of technology and a time of sadness, 5 teenagers decided to get together in the forest, talking about their lives and their future. Their name were Agathe, Claire, Marjorie, Gaëtan and Mohammed, 3 girls & 2 boys friends since they were just babies.
Strategic Planning
STRATEGIC PLANNING

mission
VISION
OBJECTIVES
... some laws and procedures could slow down or block the business...
The legal threats have to be managed...
Competition has to be analyzed in order to succeed

Some threats can become real obstacles for our project...

- Something else is missing, said Mohammed, who will guide, motivate and control all the company?
- We need a board of directors and a CEO, said Marjorie.
- Yes, good idea, let’s put it in the middle, like a tower, so the board will see all the departments and the CEO will be on top of them, said Claire.

- I think this time we are good, declared Agathe.
- Yes, we are good, answered the others at the same time.

And they started to laugh, they were so proud of themselves.

- Hummm, something’s missing, said Marjorie.
- Really? What is missing, said Agathe.
- We don't have any link between these departments, they need to work together, as a whole team, otherwise it won’t work, answered Marjorie.

- You’re right, said Gaëtan, and the links would be different between the departments, some will be strong, like between Administration and Operations for example, some others will be more elastic like between Finance and Marketing.
- Let’s make those links !, proposed Claire.

And they created all the links, analyzing if the company could continue to operate without a department. And they found out that Gaëtan was right, they were different type of links.

Mohammed declared : here we go, we have our company with all the departments we need. Let's get up and have a look at it !
Claire said : my mum is a business lawyer and she always told me that legal was very important for a company, we can have issues with suppliers and customers, we need to follow the legal rules of companies which is called Corporate Housekeeping.
- We also need to check all the new laws, and we can use them at our profit and try to mitigate the risks. For that we need a legal department with advisors inside the company but also experts when needed and of course lawyers to represent us at court.
So we need a strategic planning like we saw in this office where MISSION, VISION, OBJECTIVES were written on the wall.
But what does it really mean? They began to imagine: they felt like pioneers discovering a new world and had to create a new society.

- our mission will be to save the world, said Claire
- we will make all the kids of the world happy, said Mohammed
- we will develop equality for all children around the world, education for all, health for all, culture,....

They all realized it will be difficult and they will have to fight against obstacles, discouragement from their family and friends, but they will fight, with honor, like knights used to do. It would be magic if they could achieve it.
- That is a great idea but how could we do that: we need money to make sure that all the children around the world will be able to go to school, have the medicine they need ?, ask Marjorie.
- I think I have an idea ! said Mohammed, why not selling candies in rich countries, it will make those kids happy and we will use the money for the children who don’t have anything.
- It will be a king of NGO with a candies' manufactury then? said Gaëtan


Ok, we know what we want to do, said Mohammed, but now we need a production chain to make those candies : they already were in the Operations department, thinking about suppliers, stocks, equipment, machines,...
- We need to think about the costs, said Marjorie, fixed and variable costs. And also the lay out to the customers.

- Yes, you are right, said Agathe, so we need a Finance department to take care of the budget: we need to raise money first to buy all we need, an accounting department to have all the in and out in figures, somebody to control it and also to make sure we follow the accounting rules and regulation.

- At the end we will have an balance sheet and a P&L and we need a CFO who will follow it. We will then be able to get dividends and use them for our mission, said Claire.

Mohammed add : we need help to be known, we need a brand, we need a packaging, we need to promote our mission and our product at the same time, we need to spread out our message.
- We could use our network, the social media, advertisement, ... proposed Marjorie.
They created the Marketing department of their new company.
Gaëtan said : this is very good. I think we also need an Administration department to organize everything, we need an H.R. policy, a wages department, we need processes and procedures to be sure everything will go smoothly and we will also need computers, softwares,... : we will need an IT department. They created the Administration department.
After a lot of talking, laughing and dreaming, they realized that the sun was gone and a very dark night without moon arrived. They were lost and couldn’t find their way back home.

They started to walk in the forest and after few miles they discovered a plant, the plant where their parents are working. They decided to spend the night there, it was so dark and they were feeling very insecure.

They started to visit the plant which was Manufacturing lego bricks. After the visit they saw a lot of bricks and thought: Why not using them and built our own business?

Great idea !!!

They realize also that some threats might have to be considered.
-Perhaps the people around us will not support the project.
The environment could be difficult ...
Suddenly, they heard somebody walking in the corridor, the door opens and they are face to face with the director of the plant.
- Who are you and what are you doing here ? ask the director
They explained why they were there and what they did during the night.
The director was amazed : you built a business model in one night, with lego bricks ! This is incredible, I can see everything and I understand it all. What a great idea !

-Yes, it was cool, said Mohammed, it was very easy to symbolize things instead of writing them on a page.
- I loved touching the bricks and building our ideas, it is like it developed our creativity and ideas were coming very fast, I wouldn’t have imagining it before ! said Claire
- We were able to materialize a concept, amazing no? said Marjorie
- I’m sure we have to improve it, but in one night we did a good job, declared Gaëtan.

- I’m buying it ! I love your idea and I want to go further with you. For now, I will call your parents so they can come and get you but let me tell you that we will stay in touch. I’ll be back to you very soon. And I will keep your model and put it in my office, if you don’t mind, of course.

- Oh, yes, no problem, they said all together.

path
fight against obstacles
with honor
Define some limits
be aware of the environment
a project
achievement

Customer is the king and our team is magic
Balance between perso and professional life
Brand
OPERATIONS
FINANCE
ADMINISTRATION
MARKETING
LEGAL
The Board
CEO
weak link
...the external environment which could block or slow down the project...
...competitors...
...threats concerning legal...
...some obstacles slow down our rythm...
idea
market segment
environment
mix marketing
brand
money
pilote
negotiation with unions
IT
Certification, procedure & rules
fix costs
variable costs
lay out
supplier
process
external threats
Legal dpt
external counsel
P&L
secure the business
Accounting
Treasury
Controlling
CFO
Share
Holders
Full transcript