MASTER OF BUSINESS ADMINISTRATION

INSTITUT TEKNOLOGI BANDUNG

MID-TERM EXAM
BLEMBA 25
17 February 2020
COURSE : MM5012 – Business Strategy & Enterprise Modeling ID NO :
DAY / DATE : Friday / 21 February, 2020 at 5.PM (softcopy)
NAME :
: Friday / 28 February 2020 at 1. PM (Hardcopy)
LECTURER : Dr. Mohammad Hamsal, MBA SIGNATURE :
TYPE : Take Home Test
COMPUTER : YES INTERNET : YES
CALCULATOR : YES

Read the article carefully. Attempt to answer all questions below briefly, clearly, and accurately.
Use sketch, picture, table, graph, diagram, matrix etc. more than just words. Avoid plagiarism!

QUESTIONS

1. Why did LEGO face bancruptcy in the early 2000s? In your reasoning,
focus on both external and internal factors.

2. What is LEGO’s core competency? Explain.

3. Apply VRIO matrix to show how LEGO leveraged its core competence
into existing and new markets over the past decade.

4. In terms of revenue growth, LEGO experienced a competitive advantage

over both Hasbro and Mattel since 2007 because it grew much faster.
What explains LEGO’s competitive advantage?

5. What must LEGO do to sustain its competitive advantage in the future?

One avenue to tackle this question is to thnik about diversification, both
along products but also geography. Another avenue is partnerships
such as strategic alliances or even acquisitions. What lessons from
LEGO’s past should guide its future diversification?

– Good Luck –

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