LEGO: The Transformation of a Toy Empire

In 2004, Jørgen Vig Knudstorp was appointed CEO of Lego during a financial crisis. He was tasked with reviving the company, which faced declining sales and significant debt. Knudstorp implemented cultural and operational changes, including reducing the number of unique Lego pieces to cut costs and improve efficiency. He also focused on quality control and divested non-core assets like Legoland to concentrate on Lego's core business. His strategy was to stabilize the company before pursuing growth, ultimately leading to Lego's resurgence.

What was one of the major challenges Knudstorp faced when he became CEO of Lego?

• Managing a significant decline in sales and high debt

• Increasing the number of Lego stores worldwide

• Expanding into new markets in Asia

• Developing a new line of Lego video games

How did Knudstorp aim to change the corporate culture at Lego?

• By introducing a casual dress code

• By reducing office space to create urgency

• By offering more employee benefits

• By increasing the number of corporate events

What was a key change in Lego's manufacturing strategy under Knudstorp?

• Outsourcing production to other countries

• Switching to fully manual production processes

• Increasing the number of unique brick designs

• Reducing the number of unique brick designs

What is the purpose of Lego's meticulous quality control process?

• To ensure bricks are colorful

• To increase the variety of brick shapes

• To maintain consistent brick dimensions

• To reduce production time

Why did Lego decide to sell off its controlling stake in Legoland parks?

• To expand into the movie industry

• To reduce competition with other theme parks

• To focus on its core business of toy manufacturing

• To invest in new technology

What was Knudstorp's approach to stabilizing Lego before pursuing growth?

• Rapid expansion into new markets

• Focusing on survival and core principles

• Launching a new advertising campaign

• Developing a new line of digital products

What mindset did Knudstorp encourage at Lego to foster growth after stabilization?

• Thinking like children

• Thinking like competitors

• Thinking like engineers

• Thinking like investors