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Abstract

The LEGO(R) group is the sixth largest toy manufacturer in the world. Although the group was a great toy maker, it was not a great toy company. In the nineties, children''s interest in toys had gradually shifted from traditional toys to video games and XBoxes, but LEGO stuck to its old philosophy of creating traditional toys. As a result, the company faced huge financial losses in 2003 and 2004. However, things changed for the better in 2004, when Jorgen Vig Knudstorp took over as Chief Executive Officer (CEO) of the company, and in 2005, the company saw its profits grow. The case discusses the various restructuring strategies undertaken by Jorgen. It also discusses his greatest contribution of transforming the corporate culture of a ''do good'' company to one that was more focused on profitability and sustainability in the long run.
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Abstract

The LEGO(R) group is the sixth largest toy manufacturer in the world. Although the group was a great toy maker, it was not a great toy company. In the nineties, children''s interest in toys had gradually shifted from traditional toys to video games and XBoxes, but LEGO stuck to its old philosophy of creating traditional toys. As a result, the company faced huge financial losses in 2003 and 2004. However, things changed for the better in 2004, when Jorgen Vig Knudstorp took over as Chief Executive Officer (CEO) of the company, and in 2005, the company saw its profits grow. The case discusses the various restructuring strategies undertaken by Jorgen. It also discusses his greatest contribution of transforming the corporate culture of a ''do good'' company to one that was more focused on profitability and sustainability in the long run.

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