BUSI2093 CEIM Coursework - LEGO Case Study

Nottingham University Business School
Undergraduate Programmes




BUSI2093 Corporate Entrepreneurship
& Innovation Management




Analysis on the LEGO Group’s Entrepreneurial Activities




Word Count: 3,010

, Table of Contents

1. EVALUATION ON LEGO’S STRATEGIC DEVELOPMENT .................................... 2

1.1 INTRODUCTION ........................................................................................................... 2

1.2 LEGO’S LIFE CYCLE ................................................................................................... 3

1.2.1 Maturity & Decline Stage (1993-2004)........................................................ 3

1.2.2 Introduction (2005-2007) & Growth Stage (2008-2013) ........................... 4

1.2.3 Maturity (2014-2016), Decline (2017) & Extension (2018-) .................... 5

1.3 LEGO’S ENTREPRENEURIAL ORIENTATION .................................................... 5

1.3.1 Proactiveness.................................................................................................... 5

1.3.2 Risk-taking ....................................................................................................... 6

2. EVALUATION ON LEGO’S INNOVATIVENESS ....................................................... 7

2.1 INNOVATIVENESS ...................................................................................................... 7

2.2 INNOVATION DIMENSIONS & TYPES ................................................................. 7

2.3 INNOVATION INTENSITY ........................................................................................ 9

3. EVALUATION ON LEGO’S SUPPORT TOWARDS INNOVATION...................... 10

3.1 CORPORATE ENTREPRENEURSHIP & HRM PRACTICES ............................ 10

3.2 LEADERSHIP ............................................................................................................... 10

3.3 STRUCTURE ................................................................................................................ 10

3.4 CULTURE ...................................................................................................................... 11

4. CONCLUSION ................................................................................................................. 12

5. REFERENCES.................................................................................................................. 13




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, 1. EVALUATION ON LEGO’S STRATEGIC DEVELOPMENT

1.1 INTRODUCTION

Entrepreneurship is the key for firms to survive in the current globalised environment,
as it helps firms to achieve their sustainable competitive advantages by encouraging risk
taking, innovativeness and proactiveness. Sharma and Chrisman (1999) defined Corporate
Entrepreneurship as “the process where an individual or a group of individuals, in
association with an existing organisation, create a new organisation or instigate renewal or
innovation within that organisation.” The entrepreneurial process of corporate venturing and
strategic entrepreneurship can be observed in the LEGO Group, as transformational changes
were made by recognising innovation-oriented opportunities. (Ireland et al., 2006)

Based in Denmark, the privately-owned LEGO Group has been in the toy industry
since 1932. With its flagship product – LEGO, a construction toy with colourful interlocking
bricks, the company envisions to become a global force to foster children’s imagination and
creativity by learning through the system of play. (LEGO, 2009) In 2019, with a number of
18 thousand employees, it has made a revenue of US$6,757mil. LEGO was voted as the toy
of the century and the company has been at the top of toy brands for the last 5 years,
surpassing Mattel and Hasbro. (Brandirectory, 2020)




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