1. What risks, if any, does outsourcing pose to Lego’s corporate identity? By defi nition, toys should be fun. Unfortunately for you, competing in today’s toy industry is anything but.77 Cutthroat competition and children’s changing interests have pushed toymakers to consolidate, cut costs, and grow through licensing agreements with media giants like Disney and Nickelodeon, something many toymakers consider to be selling out.

No one needs to explain the crushing pressure to you—you’re the new CEO of Lego, the fi rst outsider in the company’s history to run the family-owned business—

because you were hired to save the company from sure decline. Last year, Lego had over $1 billion in sales. Its proprietary manufacturing operation pumps out 15 billion components a year—that’s 1.7 million bricks, Lego people, and other elements per hour. By the numbers, Lego is the world’s leading tire maker, producing 306 million tiny rubber tires a year for its sets.

Lego’s iconic bricks are so versatile that with a pack of only six bricks, a child can create 915,103,765 unique confi gurations. It’s no wonder that Lego beat out Barbie and the teddy bear to be named Toy of the Century by Fortune magazine and by the British Toy Retailers Association.

Despite the volume of product being produced, the perennial accolades, and a reputation for nurturing creativity in children, Lego is losing money at an alarming rate. On last year’s $1 billion in sales, the company lost a whopping $240 million. It also carries about $750 million in debt. That means you begin your stint as CEO squarely behind the eight ball. First on your list of things to do:

change the company mission from “nurturing the child”

to “I’m here to make money for the company.”