LEGO - Yufei Ye 1. LEGO Group, which is the fifth largest...

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Yufei Ye 1. LEGO Group, which is the fifth largest toy manufacturer, faced a serious financial crisis which was caused by diversifications of its products that led to the vast complexity and inefficiencies. With a substantial amount of suppliers, miscommunication has been a serious issue that exercised great negative influence on its reputation and core value. They decided to solve this problem by reducing complexity and outsourcing production, although they were forced to terminate the partnership with Flextronics due to divergence and misalignments, they managed to gain a valuable lesson on improving their processes, which was the major factor they rebounded from the crisis. 2. LEGO attempted to relieve its financial burden by outsourcing major parts of its productions, but it went the opposite way of what the company expected as it increased the complexity of production. 3. o DHL Solution, licensed to operate the European distribution center.
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This note was uploaded on 12/29/2011 for the course SCM 371 taught by Professor Tobias during the Fall '11 term at Michigan State University.

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