Read the following case study. Q$1$ to Q$4$ are based on following case study.

Lego, a leader in children's toys, is known for its unique building block$-$style products. It began in $1932.$ The corporation was near extinction by $2004,$ losing $$1$ million a day. Within five years of hiring new CEO, sales and earnings increased, defying doubters who thought the new plan would fail. Sales, revenues, and profits remained robust. In $2010,$ revenues were $16$ billion Danish krone $($DKK$),$ but in $2014,$ they were over $28$ billion, and profit virtually doubled from $3\mathrm{.}7$ billion to $7$ billion.

With the rise of high$-$tech entertainment like the iPod and PlayStation, Lego became outdated in the toy industry. When Jorgen Vig Knudstorp became CEO, the company was battling with bad performance, missed deadlines, protracted development times, and poor delivery. The most popular toys were often out of stock, and the manufacturer couldn't transport enough or produce its more intricate sets. Retail shops lost business due to frustration and decreased shelf space.

Knudstorp altered everything. He approached prominent merchants, slashed expenses, and added supply chain ties. Until the current method, $90\%$ of components were used in one design. When designers were encouraged to reuse Lego parts in new items, the number dropped from $13,000$ to $7,000.$ This reduction saved money since each component's mold might cost up to $50,000$ euros.

Traditional Lego blocks and components let kids build anything their imagination could imagine. Products were expanded to reach new customers under the new strategy. Lego managers$-$based items on Star Wars and Indiana Jones. Lego expanded into video games with animated Lego characters based on movies. The corporation developed a product strategy for grownups and engaged the thousands of Lego$-$themed websites and blogs. It embraced the community that saw Lego as a tool to make art rather than just a building toy and produced a range of Legos for girls because most of its goods were for guys.

Lego culture no longer accepted non$-$performance. In the past, the corporation prioritized innovation and originality before revenues. But that changed. "Knudstorp made it clear that Lego's success depended on results, not just making the best toys. Lego has a fun business, but working here isn't. Some of Lego's biggest changes came internally. After significant losses in $2004,$ Lego changed their staff pay system to reward product innovation and sales. KPIs promote product innovation that boosts sales and cuts expenses. While development time reduced by $50\%$ and some production and distribution services were relocated to cheaper areas, quality remained a priority. Lego's bottom line improved when reusable parts eased supply chain strain.

Lego also entered the virtual realm, including video and interactive games on the internet. Innovation in product concepts reduced expenses and promoted real$-$time customer input globally. Lego also created brand ambassadors who hosted global conferences to discuss product innovation and promote consumer communities. Lego administrators pondered entering the film industry because of rising income, a dangerous move for a toy company. Lego's success with Hollywood$-$style action figures sparked its interest in filmmaking.

Business IS was stressed by growth. Inability to meet client demand was due to order management and fulfillment issues. New hires to support growth and new sites stretched employee management systems. Product design and development, notably virtual and video games, required new technology. Lego management solved some of these issues using the same method as their blocks. Their modularized and standardized IS architecture allowed them to expand faster and add capacity and features as needed. Their integrated enterprise solution added human capital management, operations support, product life cycle management, and data management capabilities. SAP and IBM technologies and services simplified IT architecture and IS management.