Lego

The early asses bought about a seismic shift in the toy market. Big Box toy discounters lowered prices dramatically and it affected LOGO in a big way. Birth rates declined too, children had less time to play and not much Interest In toys that didn’t offer Instant gratification. These external and market changes did not play well to Logo’s strengths.

Along with the external factors, serious changes were also happening in the LOGO Group. Then CEO, K]led appointed a five-person management team to help him run the company when he returned.

The group focused mainly on driving growth. When a benchmarking study revealed Logo’s global name connection was on par with Industry giants like Disney, the team started churning out new products and Ideas to leverage the brand’s untapped value. A line of LOGO- branded children’s wear was created and a Dillon of the LOGO Group was charged with pitching book, movie, and TV ideas.

LOGO building sets became increasingly complex with more unique components. While the number of LOGO-branded items grew, sales did not, and the company suffered its first financial loss.

The top-line growth was slowing down but their cost was accelerating, so they were starting to lose some significant money. There were many reasons for it Firstly, I believe the issue was Plainsman’s management style. He started doing things by the book. All the initiatives like laying people off, streamlining things, globalization was like going by the turnaround book and yet the financial picture grew worse Secondly, the company’s growing complexity was choking It and was a big cause of determine, and inventory harder to manage.

The complexity had a multiplier effect that went through the entire supply chain Thirdly, the LOGO Group had also gotten too far away from the core values it had been building on for the better part of a century. Mans 2 Jorge Inductors was Just 35 years old when Keeled promoted him from director of strategic development to CEO in 2004. Unlike Ploughman, his turnaround attempt succeeded. Undertow’s slow-it-down approach of careful cash management, focusing on core products, and reducing product complexity certainly contributed to that success. Re- engaging with customers was also taken to another level.

One of the insights Jorge had when he became CEO was that he needed to reconnect with the community of loyal LOGO fans which according to him was one of the most powerful assets the company had.

It was one of the big reasons for the comeback. (Most effective) Inductors recognized that innovation was part of that core, but he’d also seen the result of unconstrained creativity, so new product design began to be informed by market research, user feedback, and how well the toys matched the vision of quality creative play laid out by its founding fathers. Less effective) Reining in the creative process was part of a larger push by Inductors to reduce overall complexity within the organization. On the supply chain side, he did away with many of the unique brick components added during Plainsman’s tenure, and eventually decided to bring brick manufacturing back in-house to ensure quality control. Less Effective) Finally, Inductors made big changes to the management team, firing five of seven manufacturing executives and appointing a new leader for the team. Egg: A psychoanalyst was brought in to teach the management team how to identify decision-making made by logic versus emotion.

(Most effective) Mans 3 Exhibit 3,4,5,7 give a good idea about this. Going through them, I believe LOGO should introduce the board games. Firstly, this will help them expand to different customer segments -like mothers,