Company Name: Lego
Unit 1: Business Organization Company – guiding Research
and Environment: questions to assist findings
research
1. Introduction to
Business Management
The role of businesses in What are the goods and/or Selling children toys
combining human, services of this business? in form of lego
physical and financial blocks if put
resources to create goods together can create
and services something.
Primary, secondary, Identify the sectors in which Secondary sector
tertiary and quaternary this business operates. Third
sectors Quatenary
The nature of business Can you identify the sectors - In secondary
activity in each sector and and activities the business sector, the business
the impact of sectoral operates in those sectors produces lego
change on business identified? pieces and models.
activity - In quaternary
sector, LEGO
educates people
through building
things. Legoland
The role of Look at history of company - KKK is the Third-
entrepreneurship (and and who started the generation owner of
entrepreneur) and company. Are there any LEGO Group.
intrapreneurship (and interesting facts that you can
intrapreneur) in overall link to entrepreneurship?
business activity
Reasons for starting up a Company profile and history LEGO started
business or an enterprise should give you information because they
on why company started/ thought of children
as their role
models, and
inspired them to be
the best they can
be.
Common steps in the Explore a mission,
process of starting up a a goal to be
business or an enterprise achieved, build up
the values of the
business.
Problems that a new In history of company was -
business or enterprise there any information about
may face issues the company may
have dealt with in the early
stages?
The elements of a Name, objective,
business plan mission,
stakeholder,
product, etc.
2. Types of
Organizations
Distinction between the Identify which sector Private sectors
private and the public business is in.
sectors
The main features of for- What is the business type ? Companies.
profit (commercial) For example Public or Private limited
organizations: Sole Private limited company. company
Trader, Partnership,
Companies/Corporations
The main features of for Features of company if case Microfinance
profit social organisations study includes one of these. providers
- Cooperatives,
Microfinance providers
and public/public
partnerships
The main features of not -
for profit social
enterprises. NGO's
Charities
3. Organizational
Objectives
Vision statement and Find the vision statement Lego want to
mission statement pioneer new ways
of playing, play
materials and the
business models of
play - leveraging
globalisation and
digitalisation...it is
not just about
products, it is about
realising the human
possibility.
Aims, objectives, Identify two strategic 1) to lead the
strategies and tactics, objectives and describe industry in
and their relationships briefly what they are creating
value for our
customers
and sales
channels:
2) To refocus
on the value
we offer our
consumers:
The need for Has the organisation made Changes of
organizations to change any changes like selling ownership share,
objectives and innovate in parts of the business or 75% investment
response to changes in pulling out of a market? company of Kirk
internal and external Kristiansen Family
environments and 25% Lego
foundation
Ethical objectives and Read and summarise three - Improve
corporate social key points in their CSR resource
responsibility (CSR) The strategy. efficiency
reasons why - Improve
organizations set ethical waste
objectives and the impact managemen
of implementing them t
The evolving role and - Do not
nature of CSR consume
resource at
a faster rate
than they
regenerated
SWOT analysis of a given Strength: Huge
organization financial power
(market leader)
Weaknesses:
Limited selection of
toys comparing to
competitors
Opportunities: Offer
more variety of
product to increase
sales
Threats:
Competitors sells
cheaper product (a
brick like product)
such as Mega
Blocks
Ansoff matrix for different Find one growth strategy to Production of new
growth strategies of a use as an example to link to product line based
given organization Ansoff. on countries
cultural
background.
(Product
Development)
4. Stakeholders
The interests of internal Identify some internal ● Employee
stakeholders stakeholders ● Board of
directors
● CEO
● shareholder
The interests of external List external stakeholders. ● Consumer
stakeholders ● (children
and parents)
●
Possible areas of mutual Can you find a conflict Between
benefit and conflict between stakeholders? shareholders and
between stakeholders’ employees. If
interests shareholder want
more profit they will
reduce the wage of
the employee thus
will create conflict
between them
5. External Environment
STEEPLE analysis of a - Social:
given organization - Technological:
- Environmental:
Consequences of a Can you find in strategic plan Environment
change in any of the examples of issues identified carbon neutral
STEEPLE factors for a in STEEPLE? operation
business’s objectives and
strategy
6. Growth and Evolution
Economies and Can you find an example of Lego buys supply in
diseconomies of scale economies of scale? a bulk and get
favourable prices.
Building big
factories provide
jobs, governments
helping reduce cost
of production.
The merits of small Large companies
versus large can buy supplies in
organizations bulk. Have more
revenue and many
customers.
The difference between Does the organisation grow
internal and external internally. For example
growth investments from retained
earnings or has wholly
owned subsidiaries?
External growth Find an example of these Unicef partnership
methods: Merger and growth methods.
acquisition, takeovers,
joint ventures, strategic
alliances, franchising
The role and impact of How has globalisation
globalization on the impacted on this business.
growth and evolution of Explain why they are a
businesses global company.
Reasons for the growth of Globalising values
multinational companies Imagination
(MNCs) creativity fun
learning caring
quality
The impact of MNCs on More jobs for the
the host countries host countries
7. Organizational Planning
Tools (HL Only)
Planning tools in a given Can you suggest planning JEsstan susu gede
situation: Fishbone tools that might be used?
diagrams, Decision trees,
Force field analysis, Gant
Charts
Unit 2: Human Resource Company – guiding Research
Management: questions to assist findings
research
1. Functions and
Evolution of Human Resource
Management
Human resource planning Identify an example of future Building factories in
(workforce planning strategy that may require other countries
human resource planning. require workforce
For example the growth planning
strategies of the business.
Labour turnover
Internal and external Any issues that the Demographic
factors that influence organisation may change.
human resource planning experience, particularly as a
(such as demographic multinational company?
change, change in labour
mobility, new
communication
technologies)
Common steps in the
process of recruitment
Types of training - on the
job including induction
and mentoring, off the
job, cognitive, behavioural
Appraisal - formative,
summative, 360 degree
feedback, self appraisal
Common steps in the
processes of dismissal
and redundancy
How work patterns,
practices and preferences
change and how they
affect the employer and
employees (such as
teleworking, flexitime,
migration for work)
Outsourcing, offshoring Find examples of these
and reshoring as human strategies.
resource strategies
How innovation, ethical Does the organisation have
considerations and strategies to address cultural
cultural differences may differences?
influence human resource
practices and strategies Look at company locations
in an organization and suggest cultural issues.
2. Organizational
Structure
The following terminology Link terminology to
to facilitate understanding organisation by looking at its
of different types of structure.
organizational structures:
Types of organisational Can you determine what Geographic and
charts structure this organisation function
may have.? As a guide
global companies may have
more than one type –
geographic then by function.
Changes in organizational
structures (such as
project-based
organization, Handy’s
“Shamrock Organization”)
How cultural differences How does cultural Language barrier
and innovation in differences affect as well as norms.
communication operations? Look at
technologies may impact countries in which it
on communication in an operates. Does it adopt any
organization strategies like multi lingual?
3. Leadership and
Management
The key functions of
management
Management versus
leadership
Leadership styles
How ethical Look at the annual report
considerations and and read what the Board
cultural differences may Chairman or CEO says.
influence leadership and
management styles in an
organization
4. Motivation
Motivational theories Pink for designers,
Taylor for
manufacturing.
Types of financial Piece rate for
rewards manufacturing
Types of non financial For designers
rewards Autonomy -
designers of lego
sets gets to design
freely.
Mastery -
Get better at
designing
How financial and non-
financial rewards may
affect job satisfaction,
motivation and
productivity in different
cultures
5. Organizational
(Corporate) Culture (HL Only)
Organisational culture
Elements of
organisational culture
Types of organisational
culture
The reasons for, and Examples of mergers or
consequences of, cultural acquisitions affecting
clashes within culture?
organizations when they
grow, merge and when
leadership styles change
How individuals influence
organizational culture and
how organizational
culture influences
individuals
6. Employer and
Employee Relations (HL Only)
The role and
responsibility of employee
and employer
representatives
The following
industrial/employee
relations methods used
by
employees: collective
bargaining,
slowdowns/go-slows,
work-to-rule, overtime
bans and strike action
employers: collective
bargaining, threats of
redundancies, changes of
contract, closure and
lock-outs
Sources of conflict in the
workplace
Approaches to conflict
resolution
Reasons for resistance to How is this business
change in the workplace managing change?
(such as self-interest, low
tolerance, misinformation
and interpretation of
circumstances)
Human resource
strategies for reducing the
impact of change and
resistance to change
(such as getting
agreement/ownership,
planning and timing the
change and
communicating the
change)
How innovation, ethical Can you find examples of
considerations and innovation and ethical
cultural differences may standards that the
influence employer– organisation is using? What
employee relations in an is the impact on the
organization organisation? Use your
judgement here.
Unit 3: Finance and Accounts Company – guiding Research
questions to assist findings
research
1. Sources of Finance
Role of finance for Can you find any examples Internal
businesses of how the business funds its
growth? Internal or external?
Internal sources of
finance
External sources of
finance
Short, medium and long-
term finance
The appropriateness,
advantages and
disadvantages of sources
of finance for a given
situation
2. Costs and Revenues
Types of costs - fixed
variable direct indirect
semi-variable
Total revenue and
revenue streams, using
examples
3. Break-Even Analysis
Total contribution versus
contribution per unit
A break-even chart and
the following aspects of
break-even analysis:
break-even quantity/point
profit or loss
margin of safety
target profit output
target profit
target price
The effects of changes in
price or cost on the
break-even quantity, profit
and margin of safety,
using graphical and
quantitative methods
The benefits and
limitations of break-even
analysis
4. Final Accounts
The purpose of accounts
to different stakeholders
The principles and ethics
of accounting practice
Final accounts - P&L and
Balance Sheet
Different types of
intangible assets
HL Depreciation using the SL
Method and Reducing
balance method
HL Strengths and
weaknesses of each
method
5. Profitability and Ratio
Analysis
Profitability and efficiency
ratios -GPM NPM ROCE
Possible strategies to
improve these ratios
Liquidity ratios - current
and quick asset
Possible strategies to
improve these ratios
6. Efficiency Ratio
Analysis (HL Only)
Stock turnover, Debtor
and Creditor days
Gearing
Possible strategies to
improve these ratios
7. Cash Flow
The difference between
profit and cash flow
The working capital cycle
Cash flow forecasts
The relationship between
investment, profit and
cash flow
Strategies for dealing with
cash flow problems -
improving cash inflows,
reducing cash outflows,
looking for additional
finance
8. Investment Appraisal
Investment opportunities
using payback period and
average rate of return
(ARR)
HL Investment opportunities
using net present value
(NPV)
9. Budgets (HL Only)
The importance of
budgets for organizations
The difference between
cost and profit centres
The roles of cost and
profit centres AO2
Variances
The role of budgets and
variances in strategic
planning
Unit 4: Marketing Company – guiding Research
questions to assist findings
research
1. The Role of Marketing
Marketing and its
relationship with other
business functions
The differences between Is this business a provider of Both. goods lego
marketing of goods and goods or services or both? blocks and lego
marketing of services sets. Services
amusement park
and education
centre
Market orientation versus Are products more mass Mass produced.
product orientation produced or order based?
The difference between
commercial marketing
and social marketing
Characteristics of the
market in which an
organization operates
Market share Can you find any data on
market share?
The importance of market
share and market
leadership
The marketing objectives
of for profit organizations
and non-profit
organizations
How marketing strategies
evolve as a response to
changes in customer
preferences
How innovation, ethical Can you identify any
considerations and marketing strategies that are
cultural differences may linked to innovation, ethics
influence marketing and culture?
practices and strategies
in an organization
2. Marketing Planning
The elements of a
marketing plan
The role of marketing
planning
The four Ps of the
marketing mix
An appropriate marketing
mix for a particular
product or business
The effectiveness of a
marketing mix in
achieving marketing
objectives
The difference between Can you identify if company
target markets and targets market segments?
market segments
Possible target markets
and market segments in a
given situation
The difference between Is company niche or mass
niche market and mass market?
market
How organizations target
and segment their market
and create consumer
profiles
A product position
map/perception map
The importance of having Find examples of products or
a unique selling services that give the
point/proposition (USP) company a USP.
How organizations can Any examples of product
differentiate themselves differentiation?
and their products from
competitors
3. Sales Forecasting (HL
Only)
Up to four-part moving
average, sales trends and
forecast (including
seasonal, cyclical and
random variation) using
given data
The benefits and Can you develop a link
limitations of sales between this topic and the
forecasting benefits for this company?
4. Market Research
Why and how
organisations carry out
market research
Methods and techniques
of primary market
research
Methods and techniques
of secondary market
research
Ethical considerations of
market research
The difference between
qualitative and
quantitative research
Methods of sampling
Results from data
collection
5. The Four Ps (Product,
Price, Promotion, Place)
Product
The product life cycle Identify two or three products
company sells. What stage
of the lifecycle is each of the
products?
The relationship between
the product life cycle and
the marketing mix
Extension strategies Find an example of an
extension strategy for one of
the products of this
company.
The relationship between
the product life cycle,
investment, profit and
cash flow
Boston Consulting Group Link product examples to the
(BCG) matrix on an BCG model.
organization’s products
Aspects of branding Identify two brands of the
company.
Importance of branding
Importance of Packaging
Price
Appropriness of following
pricing strategies
Cost plus, penetration, Can you identify any pricing
price skimming, strategies used by the
psychological, loss company?
leader, price
discrimination, predatory,
price leadership
Promotion
Aspects of promotion ATL Can you find examples of
BTL promotional activities?
The impact of changing Can you find an example of
technology on promotion using technology?
promotional strategies
(such as viral marketing,
social media marketing
and social networking)
Guerrilla marketing and
its effectiveness as a
promotional method
Place
The importance of place
in the marketing mix
The effectiveness of
different types of
distribution channels
6. The Extended
Marketing Mix (HL Only)
People
The importance of
employee– customer
relationships in marketing
a service and cultural
variation in these
relationships
Processes
The importance of
delivery processes in
marketing mix a service
and changes in these
processes
Physical Evidence
The importance of
tangible physical
evidence in marketing a
service
The seven Ps model in a
servicebased market
7. International Marketing
(HL Only)
Methods of entry into How does this company
international markets enter international markets?
The opportunities and
threats posed by entry
into international markets
The strategic and
operational implications of
international marketing
The role of cultural
differences in
international marketing
The implications of Find an example of how
globalization on globalisation influences this
international marketing organisations marketing.
8. E-Commerce
Features of e-commerce
The effects of changing
technology and e-
commerce on the
marketing mix
Differences between e-
commerce types - B2B,
B2C, C2C
The costs and benefits of
e-commerce to firms and
consumers
Unit 5: Operations Company – guiding Research
Management: questions to assist findings
research
1. The Role of Operations
Management
Operations management Where does the company Moulding in
and its relationship with have manufacturing mexico, denmark,
other business functions locations. hungary. Brick
decorations and
packaging in
denmark, mexico,
hungary, czech
republic, kladno.
Operations management
in organizations
producing goods and/or
services
Operations management Refer to their sustainability
strategies and practices and CSR documents
for ecological, social
(human resource) and
economic sustainability
2. Production Methods
Production methods Identify the type of Mass production
including job/customised production process used in
production; batch manufacturing. You may
production; have to interpret to some
mass/flow/process extent but scale of operation
production; cellular and type of products will be a
manufacturing clue.
The most appropriate
method of production for
a given situation
3. Lean Production and
Quality Management (HL
Only)
Features of lean
production
Methods of lean Examples but again
production interpretation may be
needed.
Features of cradle to Possible example?
cradle design and
manufacturing
Features of quality control Does the company talk about
and quality assurance TQM or certification?
Methods of managing
quality
The impact of lean
production and TQM on
an organization
The importance of
national and international
quality standards
4. Location
The reasons for a specific
location of production
Ways of reorganizing Are any operations
production, both outsources, offshored or
nationally and insourced.
internationally -
outsourcing, offshoring,
insourcing
5. Production Planning
(HL Only)
The supply chain process
The difference between
JIT and just-in-case (JIC)
Stock control charts
based on lead time, buffer
stock, reorder level and
reorder quantity
Capacity utilization rate
Productivity rate
Cost to buy (CTB)
Cost to make (CTM)
6. Research and
Development
The importance of What does the company do?
research and Do they have a research
development for a budget or discuss
business expenditure in this area?
The importance of
developing goods and
services that address
customers’ unmet needs
(of which the customers
may or may not be
aware)
Types of innovation - Any examples?
product process
positioning paradigm
The difference between
adaptive creativity
(adapting something that
exists) and innovative
creativity (creating
something new)
How pace of change in an
industry, organizational
culture and ethical
considerations may
influence research and
development practices
and strategies in an
organization
7. Crisis Management
and Contingency Planning
(HL Only)
The difference between
crisis management and
contingency planning
Factors that affect
effective crisis
management -
Transparity,
communication, speed,
control
Advantages and Does the company discuss
disadvantages of issues of risk?
contingency planning for
a given organization or
situation:
Costs time risks safety
