LEGO® From Brick to Brick The LEGO Group is a family-owned company which was founded in 1932. LEGO is one of the world’s leading manufacturers of play materials for

children. It employs approximately 9,000 people globally and LEGO products can be purchased in more than 130 countries. Ideas and product development take place at the

company’s headquarters in Denmark. There are approximately 4,000 different parts in the LEGO range—plus 58 different LEGO colours. LEGO bricks are manufactured at

factories in Denmark, Hungary, Czech Republic and Mexico. The LEGO Group employs around 120 designers. Its selection process for designers is based on hands-on work

and face-to-face interviews. New Range In December 2011 the LEGO Group announced the introduction of LEGO Friends, a new play-theme aimed at girls aged 5 and up. The

Friends range, which is set in Heartlake City, features a pastel-coloured beauty salon, fashion design studio and bakery. There are also five mini-dolls that come with

handbags, lipsticks and a number of other accessories. The new range has angered some parents who have said the toy company has made the once gender-free product too

girly. LEGO said it had spent years completing market research for the range and added that parents asked had so far given it positive feedback.

QUESTIONS Answer ALL the questions.

1.LEGO regularly brings out new products.

(a)Describe each of the stages shown in the following product life cycle diagram. Product Life Cycle Introduction




TIME Stage Description





(b)    Outline 2 reasons why LEGO introduced the Friends product range.

Reason 1

Reason 2

(c)     LEGO spent years completing market research for the Friends range.

Name and describe 2 methods of market research. Method 1

LEGO uses face to face interviews as part of its selection process.

(a) Suggest 2 other methods it could use to select suitable employees.

(b)Organisations pay their employees for the work they carry out. Describe each of the following payment systems used to calculate wages. Description

Payment System

Piece Rate

Group Bonus

A stakeholder has an interest in the success of a business.

(a)(i)    Identify 2 stakeholders of LEGO.

Stakeholder 1

Stakeholder 2

(ii)Describe a different interest for each stakeholder identified in 3(a)(i). Interest of Stakeholder

Stakeholder 1

Stakeholder 2