The LEGO Group’s Case Introduction. Psychology Essay

The LEGO Group’s Case Introduction
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The LEGO Group’s Case Introduction
The LEGO Group learned the significance of managing its global supply chain effectively in a hard way. In 2004, the company encountered its largest financial crisis even after 70 years of existence. The primary players, in the case at hand, are Flextronics and the LEGO Group. Flextronics is a Singaporean firm that manufactures electronics. The LEGO Group had outsourced its products to this company so that it can reduce its production costs and possibly restore growth, which was experienced before the financial crisis. The central issue that caused the financial crisis was LEGO Group’s confidence loss, particularly in the LEGO brick, which was the company primary product. The company’s initiative was to facilitate growth by addressing the decline of toy sales in the traditional market. For this reason, the LEGO Group wanted to venture into clothing, television, and computer games. However, the diversification resulted in vast inefficiencies and complexity, making ...