4 of GDP this year would be more profoundTransmission a strategic issue for the CFAThe overall budget of the ICC represents 3Own fundsIt is not repeated the Dutch clean2 billion of financial flows are expected in the areaThe conflict the situation is unprecedentedLessees of tobacco are themselves raise the pressureA sin sanctioned insensitively by the godsIn a market which is less than last year 6Or more likely there has been invited by the KremlinSitting on the dock, Barbie has the blues. Perhaps one of the 50 that she celebrates this year, but without a single ride. Or then because these trains which spend more. Those electric Maerklin in shaves the a German campaign of des électriques arrêtée en exemple, allemande électriques arrested in example, allemande of balance sheet, as his colleague Brio, the King of the wood train. His father to her, the Mattel American, in is not. Leader of the toy, he reigned without sharing, but on a good sector badly in point, and had to concede a decline of nearly 40 of its profits last year with poor prospects for the current year. As the beautiful Barbie, the world of the toy shreds of black.
Finally, not everyone. Come north, a happy train is fanfare, filled with small characters lowercase and grassouillets, so far from the beautiful blonde sexy charm, but also well preserved since they display them as their fifty spring. And what health! Full doldrums, Danish Lego announced last month cutting-edge results with sales up almost 20 and profit up 30. Since its recovery begun in 2004 by its new President and CEO, Jorgen Vig Knudstorp, firm beats all records.
It collects the fruit of a long-term strategy, a plan for six years (2004-2010) scrupulously executed but revised the circumstances. Dubbed the "shared vision", it consisted of three stages. First survival, focused on the restoration of the balance sheet and the painful decisions of reduction of costs, second the creation of a sustainable basis, marked by the consolidation of the logistics chain and the revision of the portfolio produced under the sign, rather than growth and profitability. And finally the last step, which begins this year, the organic growth under the sign of innovation and new relationships with retailers and end customers.
In these times of great stagnation and morale in the socks, it is not unnecessary to Exchange that many are now regarded as one of the most talented patterns of his generation. Four lessons "anti-crisis" which often defy intuition.
1 - Do not depend on
conditions
"We are responsible for 90 of our results," likes to emphasize Jorgen Vig, only 10 are dependent on what it does not control. And, for three reasons. First the firm is global. It is the first West of the toy to the Japan and the number one sector in Germany. Then because the company is protected by its outstanding brand and its status of educational toy. It is the most important asset of the business, someone who has been the most threatened by the crisis in the 2000s. In Germany, Lego is not a toy like the others but a step required in the intellectual construction of a small boy. An institution. Third, the company is small, and in this case is an advantage. Number six world, it is four times smaller than Mattel. With less than 5,000 people, it can react more easily. At the time, as any player in a niche sector, performance were not correlated to the economy but in its faculty to take advantage of market opportunities.
2 - Be wary of the race
size
She almost kill Lego, or at least compromise the independence of this company still owned by the small children of Ole Kirk Christiansen, founder. Shaded by the success of its brand in the 1990s, the company started in a race to the volume. She first multiplied the licenses derived from Hollywood films like "Harry Potter", "Batman" or "Star wars", and then she wanted to export its "spirit" to other products such as amusement parks, television, films, video games, to follow the evolution of the taste of the children. "We are too diverse and especially too quickly, in trades that we do not know", says Jorgen Vig. This has had two consequences. First the collapse of profits at the same time the flight of the turnover and loss of concentration on the core business. Occupied by its new activities, the firm abandoned base products, a little "ringards", and the clients, distributors or final purchasers. The work of the new pattern was to the contrary. Assign all new trades. LEGO has more than 25 of its parks. Then he has focused on relations with the distributors clients. Thus, in France, team marketing client, distinct from the commercial, rose from two to twelve people. With the aim to group non-growth but the competitiveness, quality and recognition. Distributors note each year the quality of their relationships with Lego and this note in the calculation of the bonus of the frameworks of the pattern. At the same time, all non-profitable products were arrested and the number of components is nearly from 12,000 to 7,000. Is that in 2008 the firm has found a near turnover than 2001.
3 - Outsourcing
is not the panacea
It is the most important lesson learned by the young Knudstorp. Former consultant at McKinsey, he applied the precept of forced outsourcing. To reduce rapidly the costs, he relocated a large part of production and sold most of its factories in Europe, America and Asia, or more than 80 of production, leading the company to reduce its staff of nearly 2,000 people. "Quickly realized us that the manufacturing was crucial, not so much to questions of quality, that can control, for questions of costs", recognizes the pattern of Lego. Injection plants spit continuous Jet near 600 items per second 24 hours a day. Machines are specific and cannot be used to others. Logistics takes therefore a considerable importance to control the flow of products between different plants (Eastern Europe for Europe, Mexico for America) and the country of consumption. When he took integrating this management into a single computer system (SAP), the cost of outsourcing have become obvious. "A Czech Republic wage is 80 lower than in the Denmark, but should be more people and this gain is cancelled by higher logistics costs, especially if the plant is not us." Result, for a year and a half, is Lego machine back. He relocates to the Denmark sophisticated molding and redeems its plants in the Mexico and Eastern Europe.
4 Steps of diversification,
strengthen the heart
Educated by experience, Jorgen Vig ensures that diversification is not the solution. "It instead constantly renovate and reinvent our basic trades", he assures. The growth of the years 2010 will therefore guide on four strong concepts. First, emphasize the effort to marketing and customer service. Does not necessarily seduce fans of video games, but be sure that all the children attracted by the game of construction have access to the Lego experience. Second, out every five years a flagship product, both the innovative and in line with the inventor of the plastic brick. After the japonisants of the Bionicle series robots, launched in 2001, the company released this year of the games based on the construction. Third, find new territories, including on the online game, but which are based on the construction and bricks. And, finally, to continue to improve the operations and logistics costs. A programme for the years to come, which pleased all small engineers aspiring and renders all Earth Barbie jealous.
