Lego Case Study

1. Introduction

The headquarters of LEGO Group is located in Billund, Denmark and it is a privately held, family-owned business. There are main offices in Singapore, USA, Enfield, London, Shanghai, China and UK. Ole Kirk Kristiansen established the company in 1932 and found the well-known recognizable LEGO® brick which is one of the world’s leading creators of play materials.

“Good quality play” - the philosophy of LEGO Group enhances a child’s life and gives them the foundation for future adulthood. Playing is a significant element for children which inspires and develops the builders of tomorrow through innovation and this is also the eventual mission of LEGO group. All LEGO products are created on the underlying philosophy of learning and development through playing.

Moving towards to the dedication of enhancing the development of children, the company believes that “Only the best is good enough”. High quality and safe products are important factors for the LEGO Group since 1932. To promote the systematic creativity on young children, LEGO bricks involve the LEGO system which basically means that creating the LEGO bricks in numerous way and disassemble them with ease. The more LEGO bricks they have, the more productive their imagination can be. LEGO is not just about toys, it is about recognizing the human possibility.

2. PESTEL Analysis

2.1 Political

A universal organization like LEGO group gets influenced by the political situations in the countries. European Union (EU) sets the regulation that all members should comply with “Toy Safety Directives’ rules which merger the close consideration to the security of materials for children and what are they made from (Sikkerhedsstyrelsen, 2012). According to Economic Intelligence Unit, Denmark is worth to invest due the stable political climate and its production mostly conducting in Denmark and thus exposed to the EU. LEGO has planned to build a new factory in China since 2014, and it is expected to be ready to produce in 2017 (Ritzau, 2013). The local political results of 130 countries will also impact the distributing of LEGO products in these nations (LEGO Group, 2013).

2.2 Economic

Economic concerns had a major impact on LEGO Group and their evolution. According to OECD, there was an international economy slow down which was impacted tremendously by employment and currency. A global financial crisis occurred in 2009 and LEGO Group has succeeded to overcome it in a very satisfying way, and even presented remarkable excess of DKK 2,887 million for the year (LEGO Group, 2010). The greater progress of middle-class in emerging nations is extremely essential for LEGO, as it attracts