Case | HBS Case Collection | November 2012 (Revised January 2014)

The LEGO Group: Envisioning Risks in Asia (A)

by Anette Mikes and Dominique Hamel

Abstract

On January 1, 2012, the LEGO Group announced a major new initiative to enhance its market penetration in Asia. Later in the year, a cross-functional group of senior managers gathered at company headquarters to discuss the status of the Asian initiative and the risks associated with it. The aim of the meeting was to outline four scenarios for the future that could help managers assess what key success factors and actions were required for coping with the challenges presented by each scenario and to prioritize them. Students will have an opportunity to enact the scenario exercise themselves, devising their own scenarios, and deciding whether the LEGO Group should build a factory in an Asian location in the next five to seven years. In order to facilitate a discussion about the challenges of designing a "winning organization," the case also presents difficult choices that executives had to make about the LEGO Group's strategy, choice of primary customers, core capabilities, and organizational structure.

Keywords: LEGO; risk management; toy industry; fashion and creative industries; Organizational Structure; Risk Management; Supply Chain Management; Organizational Design; Entertainment and Recreation Industry; Denmark; Asia;

Citation:

Mikes, Anette, and Dominique Hamel. "The LEGO Group: Envisioning Risks in Asia (A)." Harvard Business School Case 113-054, November 2012. (Revised January 2014.)