The last years' quite daring journey from 2004 to 2009 had instructed the fifth-largest toy maker in the world - the LEGO Group - the significance of managing the global supply chain efficiently. To be able to survive the greatest internal financial crisis in its around 70 years of existence, the direction among many initiatives, determined to offshore and outsource a major chunk of its production to Flextronics.
Lego Group An Outsourcing Journey Case Study Solution
In this quest of accelerated cost-cutting edges that were sourcing, the LEGO Group intended to license out as much as 80 per cent of its production besides closing down important portions of the production in high cost countries. Confident with the prospects of the brand new venture, the organization signed a long-term contract with Flextronics.
This decision finally demonstrated itself to have been overly hasty. LEGO direction was posed by this abrupt change in its sourcing strategy using a number of caveats. Regardless of the predictions that are bright, the cooperation didn't fulfill the first expectations, and the company needed to realize why this had happened. Secondly, what could LEGO management have done otherwise?
PUBLICATION DATE: November 12, 2010 PRODUCT #: 910M94-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
Related Case Solutions & Analyses:
Otis Elevator Co.: China Joint Venture (D)
Giddings & Lewis: In Search of the Cutting Edge (Consolidated) (A)
Time Life Inc. (A)
Kirin Brewery Co. Ltd.
Paul Volcker and the Federal Reserve–1979-82
South Pole Carbon Asset Management–Going for Gold?
Mercado Libre
Managing for Value at the Global Environment Fund
Fair Trade USA, Innovating for Impact
Huntington University
