Business Environment of IKEA - Assignment

Added on - 21 Jul 2020

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Business and Businessenvironment
Table of ContentsINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1P1 and P2....................................................................................................................................1LO 2.................................................................................................................................................1P3 Relationship between different organisational functions and their link to organisationalobjectives and structure...............................................................................................................1Difference and interconnection among business functions.........................................................2LO3..................................................................................................................................................3P4 Positive and negative impact of macro environment.............................................................3LO 4.................................................................................................................................................4P5 Internal and external analysis of Ikea....................................................................................4P6 Strengths and weaknesses linked with internal and external factors.....................................5CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONOrganisations need effective strategies systems, policies and working practices in order tosurvive in a highly competitive business environment. It is a combination of both internal andexternal elements that affect an organisation's functions and activities. Therefore, it is veryessential for a business to identify and understand potential impact of these factors forperforming its functions effectively. The present report is in context to IKEA, a leading companyin UK and it identifies various internal and external factors affecting business functions.Furthermore, the report will also discuss different types of organisations, their scope, structureand objectives. The connection between various business functions and their objectives will bealso discussed in the following report. Furthermore, positive and negative impact of macroenvironmental elements on the organisational functions of IKEA will be also determined.LO 1P1 and P2Covered in PPTLO 2P3 Relationship between different organisational functions and their link to organisationalobjectives and structure.In each and every business or organisation, there are various functions which areperformed in order to achieve the organisation goals and objectives. Every function within anorganisation is interconnected with each other; these functions include finance, marketing,administration, operations etc. (Besley and et.al., 2015).The business functions are greatlyinfluenced by the business policies, decisions and activities. Moreover, the departments withinan organisation consist of specific numbers of employees managed and controlled by a singlemanager. Each one of the organisational function or department is essential to attain the businessaims and objectives. IKEA has different types of effective functions which help it to attainsuccess in the market, these functions can be described as follows -1.Marketing functions – This function is related to various activities performed by theorganisation in order to promote its products and services in the market. The main goal ofthis function or department is to attract more and more customers by different methodssuch as advertising, public relations etc.1
2.Financial functions – The department of finance within IKEA plays an important role inkeeping record of all the financial transaction of the business. This function assists theorganisation to maintain and measure its proficiency and expenses with accurateinformation and data as recorded (Aithal and et.al., 2016).3.Human resource functions – The human resource management also plays vital role indeveloping, managing, motivating and creating an effective workforce in an organisation.The HR functions includes recruiting new employees, providing the training, measuringtheir performance and supporting term with regards to various issues such as salary,leaves etc.4.Information technology - This office have association with all office since its significantpart is to keep up the data and information of the business and build up the associationamong the different office by viable correspondence innovation. This office haveexpected to work the different mechanical capacity in the business. This office haveassociation with organisation and operational division (Monroe and et.al., 2015).Difference and interconnection among business functionsAccording to the above discourse, it has been found out that there are different sorts ofcapacities in the business undertaking, for example, advertising, back, activity, organization, datainnovation and so on. All these offices play out their won parts and obligation however, thesehave basic target which is hierarchical goal. The structure that is trailed by the associationdepend on three kinds which are as per the following-1.Functional structure-The useful structure of the organisation by and large considered inwhich whole business enterprise is separated into different office based on specialisationthat is advertising, people asset, back, organisation and so on. Ikea can receive thisstructure to appoint the parts and obligation to every office in the organisation.2.Divisional structure according to this structure division of organization in light of theventure and portion. In other words, one might say that divisional structure have make thesection in various office by land territory. In this structure, all workers have their ownparts and obligation to achieve the objective (Aithal and et.al., 2016).3.Matrix structure-A lattice structure is an organisation structure in which connectionbetween different divisions is set up as a network or grid instead of in customary chain of2
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