Michael I think the changes knudstorp implemented are

Michael Au-Yeung

Discussion Questions

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now


The changes Knudstorp achieved is to
advance the information systems capabilities and the organizations internal
changes. The business strategy, according to Jay Barnum, is the actions
implemented to meet the business goals (Strategic Factor Markets: Expectations,
Luck, and Business Strategy). The changes align within the strategy in that the
information system was improved to support product management, data operational
support, and other types of management in the organization. The improvement of
technology from vendors are SAP, a software company and IBM, a computer
manufacturing company. The changes within the organizational chain of employees
affects the incentives ideas innovation and creativity that many individuals will
display to stay with the company when Knudstorp informed all employees that
there would be employment cut(Lego.com). Other business strategies that is achieved
is the targeting of more than one customer base from both boys and girls and
into the virtual world of video games and film. 


I think the changes knudstorp
implemented are a form of hypercompetition. The textbook states that
hypercompetition is the aggressiveness and speed of all the moves and
countermoves that a company uses in a highly competitive environment or market.
Knudstorp’s changes include changing the company’s organizational structure,
the ideas of new products, and the overall costs and efficiency. The changes
were needed as Legos was losing a lot of money daily. The first move was to
create a well-established working environment and culture, it being that the
creation and innovation of products must not over take the organization’s
profit. According to Jena McGregor, Knudstorp made tough decisions to cut the
staff, but he was honest with his decisions that by being innovative, you wouldn’t
be cut (The Washington Post). The next move was to innovate a new set of
products that targeted more than one sector of customers. It targeted anyone
using movies, websites, and popular trends at the time. Not only did it target
boys, but it also targeted girls too with a specific line of toy creations.
Legos needed to continue to renew its product and ideas to consistently succeed
year after year. Lastly the move to cut down costs and time drastically
improved the efficiency of the company. Legos before Knudstorp’s transition to
the CEO of Legos, was failing in supply and demand. To improve the production
time of parts, he decided to reuse parts and molds that saved time and money. These
reasons of aggressive yet successful strategic decisions, helped shape the
company. According to Peter Keen from the MIS Quarterly Journal, Knudstorp’s
decision was supported by himself and even though his strategies were not
supported by others, he eventually made the company successful (Value Analysis:
Justifying Decision Support Systems).