Two years after joining the LEGO Group as their Logistics Manager for Europe and Asia, Egil MA?ller Nielsen finds himself fighting several battles at different fronts; the most difficult one on his home turf against his own management team. He is half-way implementing a bold plan: close down all existing local and regional logistics operations and consolidate all logistics and distribution activities from a central location in the Czech Republic, managed by an external partner - DHL. Outsourcing logistics services on a scale like this - in East-Europe - had never been done before by any other European company. The stakes are high as LEGO, struggling for survival, is also trying to re-invent itself. Should Nielsen push through his plan - in which he firmly believes - or give in to the mounting pressure from home and relax his efforts? Learning objectives: We observe two new partners, both active on new, unexplored territory in the early stages of their partnership. The relationship is strained; both companies are under tremendous pressure from their corporate headquarters to show results while there is a general distrust in each others capacity and motivation. In this first case we learn that building a relationship that is based only on a contractual agreement can be a painful experience. Cost accounting in general and cost drivers in specific are mentioned to illustrate their importance in key decision making.
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Case Analysis of LEGO: CONSOLIDATING DISTRIBUTION (A)
LEGO: CONSOLIDATING DISTRIBUTION (A) is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. LEGO: CONSOLIDATING DISTRIBUTION (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. LEGO: CONSOLIDATING DISTRIBUTION (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. LEGO: CONSOLIDATING DISTRIBUTION (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
LEGO: CONSOLIDATING DISTRIBUTION (A)
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of LEGO: CONSOLIDATING DISTRIBUTION (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The LEGO: CONSOLIDATING DISTRIBUTION (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Leadership & Managing People Solutions
In the Texas Business School, LEGO: CONSOLIDATING DISTRIBUTION (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – LEGO: CONSOLIDATING DISTRIBUTION (A)
Step 1 – Problem Identification of LEGO: CONSOLIDATING DISTRIBUTION (A) - Harvard Business School Case Study
The first step to solve HBR LEGO: CONSOLIDATING DISTRIBUTION (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Lego Logistics is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Lego Logistics, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the LEGO: CONSOLIDATING DISTRIBUTION (A).
The external environment analysis of LEGO: CONSOLIDATING DISTRIBUTION (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in LEGO: CONSOLIDATING DISTRIBUTION (A) case study. PESTEL analysis of " LEGO: CONSOLIDATING DISTRIBUTION (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with LEGO: CONSOLIDATING DISTRIBUTION (A) macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for LEGO: CONSOLIDATING DISTRIBUTION (A)
To do comprehensive PESTEL analysis of case study – LEGO: CONSOLIDATING DISTRIBUTION (A) , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on LEGO: CONSOLIDATING DISTRIBUTION (A)
Government policies have significant impact on the business environment of any country. The firm in “ LEGO: CONSOLIDATING DISTRIBUTION (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Lego Logistics is operating, firms are required to store customer data within the premises of the country. Lego Logistics needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. LEGO: CONSOLIDATING DISTRIBUTION (A) has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Lego Logistics in case study LEGO: CONSOLIDATING DISTRIBUTION (A)" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Lego Logistics in case study “ LEGO: CONSOLIDATING DISTRIBUTION (A) ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Lego Logistics in case study “ LEGO: CONSOLIDATING DISTRIBUTION (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on LEGO: CONSOLIDATING DISTRIBUTION (A)
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ LEGO: CONSOLIDATING DISTRIBUTION (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Lego Logistics can compete against other competitors.
Government Scheme & Subsidies Impact on LEGO: CONSOLIDATING DISTRIBUTION (A)
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at LEGO: CONSOLIDATING DISTRIBUTION (A) case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on LEGO: CONSOLIDATING DISTRIBUTION (A)
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Lego Logistics needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Social Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Technological Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Environmental Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Legal Factors that Impact LEGO: CONSOLIDATING DISTRIBUTION (A)
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in LEGO: CONSOLIDATING DISTRIBUTION (A) case study. PESTEL analysis of " LEGO: CONSOLIDATING DISTRIBUTION (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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