IKEA is global brand name, with a reputation for innovation in its chosen field of flat-pack furniture and a wide range of household goods and accessories. The company vision statement is aspirational and yet inclusive: “ At IKEA, our vision is to create a better everyday…
plistic style matches also the no-frills product lines and customer service ethos and chimes with the company’s origins as a small Swedish family business which started in 1958. In reality, however, the company has a sophisticated approach to its business, and this is built on a suite of interlocking strategies. This paper will consider five of these in turn: Alliances/Agreements, Human Resource Factors, Knowledge Management and Competencies, Cultural and Strategic Fitness, and finally Environment/Sensitivity issues and analyse the appropriateness and effectiveness of each.
IKEA’s phenomenal success in expanding from Europe to America and Asia could not have happened without a network of well-chosen alliances and long term business relationships with suppliers, manufacturers and logistics operators. Planning of supply and demand across the whole operation is done centrally with the aid of computerized APS (advanced planning systems) and this requires advance agreements on volumes and capacities for both IKEA and the different suppliers. (Jonsson et al, 2008, p. 99). The aim of this approach is to make optimal use of resources throughout the whole chain and to minimize stock levels. Where possible, and when quality control processes are in place at the required level, suppliers are tied into a system of direct delivery to the point of sale. Johnsson et al. identify four main “enablers” for this planning process “planning organisation, data quality, software support and project and change management” (Jonsson et al, 2008, p. 100). The last of these entails significant time and resources spent by IKEA managers out in the field: “IKEA has over time struggled with achieving consistent result from its implementation efforts… A Four-Step model has been defined clearly recognizing the need to create awareness in the first step, create interest in what is coming in the second step, making users try out the solution in the third step and finally adopt ...
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This paper presents brief report on the management strategy of IKEA and gives detailed analysis of both the internal as well as external environments. In order to analyze the business environments, various business analysis tools such as SWOT, PESTLE, Porter’s Five Force analysis etc will be included in the paper.
The advent of globalization, followed by information age, has expanded and to an extent, blurred the geographical boundaries, in the process, opening up newer avenues for global competitors to co-exist alongside the local firms. Considering the current corporate climate, it is imperative for corporate leaders to continuously strive to improve their product offerings and range, and offer good quality products to their customer at affordable rates, as compared to their competitors.
Thus, the main focus is on a cost leadership business model, in which the PRICE of the product dictates all other forms of operations, such as manufacturing, logistics, and design. IKEA, while recognized as a furniture store, is home to a bigger set of ideas and products of Scandinavian origin.
a renowned furniture retailing company. The study has selected Indonesia as the venue for international operation for IKEA. At present, IKEA doesn’t have any business operation in Indonesia but the company has announced that it will enter Indonesian ready-to-assemble furniture market by establishing partnership with PT Hero Supermarket by 2014 (Cahyafitri, 2012).
The company has gained worldwide recognition through innovative design and unique customer service. The study has dealt with how various strategic management models can bring about the betterment of the organization and also helps to form a strong global footing.
es in more than 35 countries around the world (IKEA, 2008b), the company is considered as one of the biggest international retailers of affordable furniture products such as economically designed bed, tables, chairs, vase, plates, and wall shelves among others (IKEA, 2008d).
IKEA is considered to be the largest retailer dealing in furniture across the globe. Modern architectural designs are the major strength of this firm. These designs are framed for its furniture and home appliances. Eco-friendly aspect is closely knitted
According to the report for most businesses, this has been challenging to attain due to the prevailing harsh economic times globally, which have solely contributed to challenging business conditions for businesses in the world today. Every business attempts to adopt business strategy that they deem to be effective and efficient.
10 Pages(2500 words)Essay
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