Product details

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Case
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Reference no. 310-122-1
Published in: 2010
Length: 14 pages
Data source: Field research

Abstract

Modulex is associated with LEGO but has developed into an independent global player in the architectural sign business, providing sign solutions worldwide for MNCs and for public organizations. Until recently, it was characterized by an elaborated organizational structure, which in many ways resembled the LEGO company. Modulex have been very successful, but the competitive realities in the industry have changed in recent years. As a consequence, the company has been losing money for some years, and the Kirkbi investment company who also owns LEGO decided to divest from this business and focus on LEGO. A recent sale led to a strategic turnaround in order to develop an entirely new business model and a corresponding new organizational structure. The company has regrouped most business activities, reflecting a transition from an internal-based to a network-based international organizational form. This transition obviously challenges existing managerial beliefs and organizational capabilities. The interesting question therefore is: ''Has the Modulex turnaround provided the company with a new starting point for its further globalization, which is more in tune with competitive realities or has it destroyed its existing differential advantage?''
Location:
Industry:
Size:
120 employees
Other setting(s):
2001-2010

About

Abstract

Modulex is associated with LEGO but has developed into an independent global player in the architectural sign business, providing sign solutions worldwide for MNCs and for public organizations. Until recently, it was characterized by an elaborated organizational structure, which in many ways resembled the LEGO company. Modulex have been very successful, but the competitive realities in the industry have changed in recent years. As a consequence, the company has been losing money for some years, and the Kirkbi investment company who also owns LEGO decided to divest from this business and focus on LEGO. A recent sale led to a strategic turnaround in order to develop an entirely new business model and a corresponding new organizational structure. The company has regrouped most business activities, reflecting a transition from an internal-based to a network-based international organizational form. This transition obviously challenges existing managerial beliefs and organizational capabilities. The interesting question therefore is: ''Has the Modulex turnaround provided the company with a new starting point for its further globalization, which is more in tune with competitive realities or has it destroyed its existing differential advantage?''

Settings

Location:
Industry:
Size:
120 employees
Other setting(s):
2001-2010

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