Analysis of Challenges Faced by Businesses in UK and Response Strategies - Ikea Case Study

Analysis of one UK
business

Contents
INTRODUCTION...........................................................................................................................3
TOPIC- “Identification of current challenges that are faced by businesses in UK and how can
they respond to these challenges”....................................................................................................3
Overview of the company......................................................................................................3
External environmental analysis of Ikea:...............................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The businesses that operate in UK have to deal with many external and internal factors
which affect their operations and functions and also influence their sustainability in the market.
The businesses cannot control and change the external environmental factors rather they can only
adjust their strategies and policies which help them to deal efficiently with the negative impact
these factors create on them (Henriques, C and et. Al., 2015). This helps the company in being
stable in the market which can help it to become successful in the changing market environment.
For understanding about the challenges that are faced by companies in UK, IKEA which is a
European multinational group which deals in designing and selling of furniture, kitchen
appliances and home accessories etc. is taken. The PESTLE analysis of the business in UK will
be done along with formation of strategies so that the challenges that are faced by the company
can be efficiently dealt with.
TOPIC- “Identification of current challenges that are faced by businesses in
UK and how can they respond to these challenges”
Overview of the company
Ikea is a European multinational group which deals in designing and selling ready-to-
assemble furniture, kitchen appliances and other home décor accessories along with providing
home services. The company was founded in 1943 by Ingvar Kamprad and is now the world's
largest furniture retailer. The company is well-known for its modern design of furniture and
other home appliances which are often environment friendly. It is a one-stop shop for all the
household needs which helps the customers in acquiring designer products for decorating their
houses (Kolios, A., Read, G. and Ioannou, A., 2016).
External environmental analysis of Ikea:
For analysing the external factors the most efficient tool which can be used is PESTLE
analysis which helps in analysing all the factors that affects the functions and operations of
a business and also influences the way in which the organisation can survive successfully
in the market. While operating in UK Ikea has to deal with the following challenges in
response to which it formulates its policies:
 Political: These are the rules and regulations of government of the country such as
trade tariffs, taxation policies etc. which affect the businesses. UK is a politically