The prime objectives for all the stakeholder groups were well defined by the group in the year 2006 (Annual Report, 2007). These have been further intensely developed in the year 2007. The rigorous balanced approach to different stakeholder groups will certainly provide a significant platform for the future operations of this group.The strategic move is divided into different stages, where every stage is targeting on some specific motives. The very initial stage was acquired in the year 2004-05 by enabling the Group to step out of the financial crisis situations due to the number of years of poor financial results as a result of unprofitable growth (Annual Report, 2007).The cut-throat competition in the toy market brought a considerable loss of market share in most markets, due to the competitors, novel product trends and private labels by the retailers. The US market noticed around 35 percent drop in market share as compared to the previous year, whereas Asian markets noticed a fall of around 28 percent (Annual Report, 2003).The year 2003 was very disappointing for the group. The net sales fell by around 26 percent from DKK 11.4 billion in 2002 to DKK 8.4 billion, whereas the play material sales declined by 29 percent to DKK 7.2 billion and thus resulting in a pre-tax loss on earnings of DKK 1.4 billion, which showed a drop of DKK 2 billion as compared with the previous year (Annual Report, 2003).The retardation shows the failure of the growth strategy resulting in a considerable loss of the market shares. Finally, by the end of the year 2003, the group decided to change its business strategy by creating new initiatives targeting effective and rapid development of the company.It was decided that from the year 2007 onwards, the activities by LEGO Group refers to the LEGO A/S, which is owned 75% by LEGO Holding A/S, in the ownership of Kjeld Kirk Kristiansen and his three children, and rest of the 25% part is owned by LEGO Invest A/S, in the ownership of the LEGO Foundation (Annual Report, 2007).
Annual Report. 2003, Annual Report 2003: LEGO Group. Billund: Corporate Communications.
Annual Report. 2007, Annual Report 2007: LEGO Group. Billund: Corporate Communications.
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