Business report assignment : IKEA

BUSINESS REPORT ON
IKEA AND REFLECTION
ON TEAMWORK

Table of Contents
1. INTRODUCTION.......................................................................................................................1
2. IKEA’S KEY ISSUE AND RECOMMENDATION..................................................................1
3. ADVANTAGES OF COMPANY’S CSR INITIATIVES..........................................................1
4. EFFECTS OF BREXIT...............................................................................................................2
5. INDIVIDUAL REFLECTION BASED ON GROUP PRESENTATION..................................2
6. CONCLUSION............................................................................................................................3
REFERENCES................................................................................................................................4

1. INTRODUCTION
The purpose of this assignment is to present a business report on IKEA and reflection on
teamwork consisting of 4 tasks. This includes determination of a key issue faced by company,
link between CSR and strategy, impact of BREXIT and reflection based upon presentation.
2. IKEA’S KEY ISSUE AND RECOMMENDATION
The key issue that is being faced by IKEA in the modern and hyper competitive era is the
threat from rival firms that have gained access to furniture industry lately. It is seen that majority
of the newly established organisations imitate IKEA’s furniture styles as well as designs in order
to develop more competitive offerings (Carlsson, 2019). Owing to this, IKEA has been facing
massive challenge over last some period of time as many rival companies intend to grab the
leading market position of the respective organisation by mimicking the offerings of company.
In this regard, IKEA should make use of Modern Management theory in order to deal
with the above mentioned critical issue. This theory proposes that companies operating in
modern world should constantly explore and implement change within organisational premises
in order to stay competitive and stay ahead of rivals present in market place. This theory is keen
on usage of latest and unique technologies by the company with an aim to enhance workforce
performance and also strive to develop cross-functional relations. With this, IKEA can make use
of technology as well as innovation as an effective measure to develop the furniture with more
compact and hi tech designs such that customers can be easily attracted by the design. When the
likelihood of people gets developed towards the uniquely prepared offerings of entity, they
intend to remain loyal to the company for a long term.
3. ADVANTAGES OF COMPANY’S CSR INITIATIVES
Corporate Social Responsibility can be referred to as a form of self regulation done by
entity in order to ensure its significant contribution towards welfare of society as a whole. The
organisations operating in modern era within highly cut throat competition have recognised the
significance of making use of CSR in order to enhance the acceptability of products by
customers, thereby enhancing the market positioning of entity (Carlsson, 2019). To facilitate this,
companies have now started incorporating CSR within the business strategy as such kind of
initiatives helps an organisation to pave way to success by gaining the attention and trust of
customers and operating in a socially desirable manner.
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IKEA also recognises the significance of undertaking CSR initiatives in order to give its
contribution to society and its welfare. In this regard, the respective company has initiated
several CSR activities such as aid to local community, education and empowerment of
workforce, addressing the gender and minority equality concerns (THE SUSTAINABLE LIVING
PROJECT, 2019). Further, IKEA has planted over one million of trees across the domestic
territory of United Kingdom. Also, the corporation has taken significant measures in order to
substantially reduce the consumption of energy and making use of alternative sources to ensure
welfare of future generations and society. The organisation of Global Talent Week during April
2016 was done to carry out provision of opportunities to workforce of company across the globe
so that they can have a dialogue over the ways in which they can pursue growth and
development within the organisational premises. Skapro chair sold by IKEA is made up of 100%
recyclable plasticc. All of such CSR projects have contributed in a great manner to the
betterment of society as well as people.
4. EFFECTS OF BREXIT
BREXIT is a phenomenon whereby voting process took place by members of European
Union to make United Kingdom leave EU. This resulted in fall in price of pound in the country.
This economic phenomenon adversely impacted upon many of the industries as well as
companies operating and functioning in the confines of the respective nation. In this regard, the
global furniture retailer IKEA has raised its prices upon some of the UK commodities after
facing huge import cost as a result of sterling fluctuations since the vote of BREXIT. The
flatpack furniture sold by the respective company has its price enhanced by 3.6% in order to deal
with a slump of 13.7% in import costs (Ikea raises UK prices after import cost hit from Brexit,
2019). The impact of BREXIT could be noticed upon the Swedish furniture retailer as the update
of its performance within the confines of United Kingdom gained recognition whereby the total
sale raised approx. 6% to a figure of £1.8 billion within the year 2017. Further, IKEA reported
has its market place shared enhanced by 0.5% bringing it close to the target stipulated by
company of 15% by the end of year 2027.
5. INDIVIDUAL REFLECTION BASED ON GROUP PRESENTATION
Each and every member of team contributed significant share in timely completion of the
group activity and effective preparation for presentation in front of peers, tutors and seniors.
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Working within the team as a leader gave me opportunities to showcase my leadership and team
building skills with the help of which I was able to set coordination and cooperation among the
team members. Further, I made use of my analytical skills in order to pay attention to minutest of
details while collecting information for the presentation. The biggest constraint while team
performance was the emergence of conflicts which arose as a result of contrasting views,
opinions and perceptions of members. The biggest benefit of working within the team was that I
learned how to lead the team and make them work together in a collaborative manner for the
accomplishment of a common goal.
6. CONCLUSION
From the above discussion, it can be acknowledged that BREXIT had a massive impact
upon the operations and functioning of business causing fluctuations in prices of commodities
within United Kingdom. Further, it has been analysed that the biggest issue faced by entity in
present time is rising competition which can be tackled with the help of introduction of
innovation in organisational premises through the usage of modern management theory.
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REFERENCES
Books and Journals
Carlsson, M., 2019. Strategic sourcing and category management: Lessons learned at IKEA.
Kogan Page Publishers.
Online
THE SUSTAINABLE LIVING PROJECT. 2019. [Online]. Available Through:
<https://www.ikea.com/ms/en_TH/campaigns/sustainable-living/index.html>.
Ikea raises UK prices after import cost hit from Brexit. 2019. [Online]. Available
Through:<https://www.independent.ie/world-news/ikea-raises-uk-prices-after-import-
cost-hit-from-brexit-36318953.html>.
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