Lego Case Analysis

March 14, 2019

Golden Papers

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1. What are LEGOs values and corporate identity? How did these develop over time (prior to LEGO Media Intl)? * Having “only the best is good for children” is the first value created by the founder of the company. That is, the founder emphasized the quality of the toys. * This is seen through the name of the company, “LEGO”, which stands for the first few letters of the Danish words: Leg GOdt, meaning “play well” * The ten characteristics formulated by GKC are the foundation of the company value system.

Thus, the company wanted people to perceive that these characteristics (value) are embedded in the offering of the firm. The ten characteristics: unlimited play possibilities, genderless, enthusiasm for all ages, play all year around, stimulating and absorbing play, endless hours of play, imagination, creativity, development, have different play value, always topical, and lead to safety and quality play. * LEGO wanted to have universal concepts associated with the following notions: 1. Idea: creativity, imagination, unlimited, discovery, constructionist 2. Exuberance: enthusiasm, spontaneity, self expression, unrestrained 3.

Value: quality, caring, development, innovation, consistency * The fundamental beliefs and the missions of the firm serve as a basis to the expression of the firm’s values. * Children are creative explorers * Therefore, the toys stimulate creativity * Regarding quality, LEGO emphasizes the importance of high quality. They, therefore, base their values on technical quality, consumer quality, and development quality * It has been suggested that the identity of LEGO is composed of several factors: the product, the brand itself, the mission, the family-owned status, and the de-emphasis of the Danish origins.

This illustrates that the company is made up of a combination of values to stimulate innovation, creativity, and values. * The blend of the values has lead to the success of the company. * At first, the value was based on “LEGO” * It underwent further changes wherein several values, such as the characteristics, has been added. 2. What was LEGOs approach to internationalization? How did U. K. LEGO (LEGO Media Intl) adapt to/adapt the corporate LEGO identity? * LEGO invested in various technology, software and concepts. * Educational software * A theme park known as LEGOLAND Family Park.

It represents the first time the company permits a wholly owned subsidiary company to have global responsibility for the production and marketing of LEGO branded goods * LEGO gained the technical support for internationalization where most of its stall were from software and publishing industries. Hence, this contributed greatly to LEGO where it marketed the company through books, televisions, magazines. * The company understood that as children get older, they tend to stop playing with toys. As a result, the company did not want to limit their abilities to the market due to age.

Hence, with gaming, books, contest and all sorts of challenges, LEGO became to be seen more appealing to the various ages found in different society. * Overall, shareholders saw the company as aggressive and strong; hence the company was seen appealing in all different nations. * LEGO did not only target the types on costumers it was after but also it needed to care for its employees for international business to happen. It made sure that the workers worked in an exciting, creative, and happy environment where things changed.

The business became national, different in linguistic, and professional * LEGO worked hard to not impose their Danish business onto any other nation. By doing so, it build various factories and decision making branch out of Danish territory and into other countries such as Britain and the UK. This allowed countries feel that the company LEGO was part of their society gaining their personal attitudes that collaborated with the Danish’s as a whole. This showed that no one country was inferior or superior to the other. 3. Did Corporate HQs cultural homogeneity influence LEGO ability for cross-cultural management?

If so, how? * Yes, Corporate HQ’s cultural homogeneity DID influence LEGO’s ability for cross cultural management due to the fact that the company has initially believed that “playing well” was universal in all society that was found around the world. * It was not until after World War II that the company has truly decided to expand and face cross cultural management. * As mentioned in the answer for question 2, the company successfully prosper due to the fact that it accepted the values, beliefs, ethics, and people of different nation in its company.

LEGO was not seen as an superior company of only Danish people imposing their core values on society. The company instead built production facilities and decision making branches in other nations to adapt and adopt core values and beliefs built on top of LEGO’s initial belief. * The company would also find itself selling computer games that showed exuberance. It gave customers fun and excitement. The topic of LEGO would be known as HOT. * It was important for the company to revaluate their policies and values. Hence, it was to assure that there were no content that did not fit in LEGO’s system.

This meant there would be no shoot them up games, racist or sexist contents available or manufactured by LEGO. The company wanted something that was deeper, intellectual for children to fit potential for development found in all society of different nations. * The company assured itself that it would not entirely make products uniform through the world. The company understood that in North America and Europe, they differ in values. Hence, Americans were closely tied with traditional LEGO ways of life, where Europe where closely tied with everyday lifestyle.

In regards, as the company grows cross-culturally and even in the future, the company has been considerate to the various cultures it plans to sell its products to. The company initially believed play was a universal factor, and later built on top of the idea where the company realize different nations carried different values and overall changed certain policies to meet with its main criteria and at the same time give different products to meet the expectations of different society found in different nation. . In what ways did LEGOs knowledge management practices facilitate cross-cultural identity transfer? LEGOs knowledge management practices facilitate cross cultural identity transfer are: * (Page 178)

In LEGO Media, knowledge about LEGO identity and associated values which back up the all important brand has inspired and guided the development of new product and concepts, which might not have materialized at headquarters. The lack of tight control – ex Denmark – allowed new ideas and therefore new knowledge about the identity. This allowed for new interpretations of the identity from outside corporate headquarters permit revitalization. * It was important that employees were still anticipating their old ways of practises where they would feel good about working for the entire group, identifying with the values of the whole group and not focusing narrowly on their own company. LEGO hence stands above all for quality and the attention for detail. * As a result, (page 179) a remarkable instance of cross cultural learning took place, 1. The software developers found inspiration in the LEGO’s design practices for conventional toys 2. The UK team found it straightforward to accept that socially undesirable software games were out of the question 3. The collaboration led to the introduction of the new concept of fun