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2) Which of the Generic Strategies Does Lego Appear to Be Using Based on This Case? Provide Support of Your Choice.

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1) How did information systems and the organization design changes implemented by Knudstorp align with the changes in business strategy? When Knudstorp became the CEO, the company was with negative cash flow and the real risk o which would have even led to a breakup of the company.
There was the change in the business strategy in the company that was brought up by the new CEO. The strategy was to survive, cut costs, sell businesses, generate cash and ignore the dash for the growth in the immediate future. Lego was known for the traditional blocks and components that will allow children to build anything with their imagination. The business strategy was to broaden the Lego products for the other customer segments. They created the products based on the popular movie themes and introduced the video games which featured animated Lego characters. They created a product strategy for the adults and engaged the communities who has already set up the thousands of websites based on the Lego creations.
In accordance to the business strategy the organization strategy also needs to be changed. The primary focus was cost cutting by adjusting production capacity to the reduced activity level. The manufacturing the distribution functions has been moved to the less expensive places. Knudstorp made it clear that, results not simply feeling good about making the best toys, would be essential if Lego was to succeed. Knudstorp has encouraged designers to reuse the same components in the new products which resulted in the reduction of the costs for the new molds and also served the cause to operate better supply chain management of the company. The organization culture has changed to one where nonperformance was unacceptable. Lego switched its employee pay structure, offering incentives for appropriate product innovation and sales .Key performance indicators encourage product…...

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