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Business Environment Operations - IKEA

Added on - 03 Jan 2021

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Business and the BusinessEnvironment
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1P4: Positive and Negative impact of macro environment on Business Operations....................1P5: Internal and External Analysis of IKEA...............................................................................2P6: Strength and Weaknesses interrelated with external macro factors in IKEA.......................5CONCLUSION................................................................................................................................6REFERENCES................................................................................................................................8
INTRODUCTIONBusinesses are undertaken by organisations and includesvarious activities such asproduction or buying and selling of goods and services to earn money in the form of profits.Business can be profit, non-profit, privately owned, or state ownedorganisation.organisation.Theinternal factors include: Objectives, Human Resources, Vision and Mission, CorporateCulture, Labour Union. The Externalcomponentsfactorsinclude: Micro Environment(customers, suppliers, competitors, market etc.) and Macro Environment (political, economic,legal, technical, social, Environment, global and demographic factors. For Example: Changes intaxes by the government can affect the organisation directly. That is customer buy less due tohigh taxes where organisation would have to re-set its prices for the survival in the market.P4: Positive and Negative impact of macro environment on Business OperationsIKEA is an international furniture brandwhich has,headquarteredin Sweden.Macro environment arethemain factors that influences the operations of organisation in aparticular area or country. The political situation of Sweden is stable thus,theIKEA enjoyedwhile operating in the marketon the principle of democracy andand business entity has gainedfinancial benefits by operating business infree market economy.During the recession,consumers spend less on luxury or comfort itemswhich hasledto thethat comes undefinancialreconomiccrisis for IKEA.To run any business organisation, a suitable environment is requiredto operate within it. Business Environment can influence by both internal and external factors.These factors may or may not be controlled by the organisation, but it affects the performance,growth, profitability and even sustainability of firmSocial-cultural factors are very important for external market environment of IKEA indifferentcountries.The existence of different social as well as cultural and religious orientationsin Christian, Islamic, Buddhist and many other mixed religion societiescountries. Thecompanyhas to face many issues due to changes in culture. It is required by IKEA to proper analyse thetarget market by ensuring the objectives of company'sand design productsproduct design inaccording to thedemand of people belonging toguidelines ofdifferentsocio-culture. As thetime changes advance technology innovations decreased barriers to performance of an
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