Business Strategy for IKEA

Business Strategy

Table of Contents.
INTRODUCTION................................................................................................................................3
TASK 1............................................................................................................................................3
TASK 2 ...........................................................................................................................................5
TASK 3 ...........................................................................................................................................7
TASK 4 ...........................................................................................................................................9
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13

INTRODUCTION
IKEA is founded in the 1943 and the company was founded by the Ingvar kamprad. The company is
providing the services worldwide and the company is dealing in the providing the ready home
furniture. The company is rated and the world largest furniture retailer company. People need home
and also want to decorate the homes with the furniture and the all the products like the furniture and
home decor products are provided to the customer. At present the company has opened 433 stores
all over the world. It is spread in maximum 52 countries and the website of the company contain at
least the 12000 products. The report want to provide the knowledge of the business strategy and it
includes the strategies used by the company. It includes impact of the macro environment and the
impact of the micro environment as well. The report consist of the theories and the models which
would improve the performance of the company. Report is also analyzing the industry and the
business environment as well.
TASK 1
Influence of the environment on the company IKEA
Impact of the macro environmental
The company wants the that the customers must be satisfied and company is also focused on
satisfying the needs of the customers and also the company is trying to solve the problems of the
customers as well. Company has created the vision to create the better life for people. Through this
mission and vision statement the company is focusing on the completing the needs of the customers.
Home furnishing products are provided by the company at the low prices and deliver the messages
to the every one which one could afford these products (Singh 2016 ).
PESTLE analysis
Political factors
IKEA is opening the stores all over the world bu the political condition of the country is
affecting the sale of the company. The company is entering the Asian markets which would include
the political condition's and the economy is also not growing from that speed and the company
wants. Some countries have developing economy and the political conditions is not right so the
company must already be prepared about the consequences of the company.
Economic factors
The recession is grabbing all the companies of the country and the global market as well
(Terkenli and Kavroudakis 2017). The economic condition of the country is not good for the
business and specially of the new businesses. Employees of the company are losing the jobs
because of the recession. In order to fight the recession the company came up with the measures
like the process of the products were decreased continuously and the home furnishing products are

stylish but these products were not expensive.
Sociological factors
The business environment is affecting the business of the company in many ways which
include the Russian case of the company. The company of the Russia removed the image of the
same sex from the magazine and the Russia is till dealing with the mentality of the homosexuality.
So the company had to come up with the other reasons for the people and for the goodwill of the
company as well (Rześny-Cieplińska and Szmelter-Jarosz 2019).
Technological factors
The people of the countries are increasing and so the companies as well. The companies are
preparing the digital catalogs for the products and the also selling the products online as well.
Company is offering the products to the customers through the websites and also using new
techniques for preparing the products as well.
Legal factors
Big business companies are always dealing with the legal cases. The government has levied
rules and the regulation for protecting the customers. Recently the case of the company was shown
on the news and the case was of providing the poor quality of the product and which have resulted
to the injuries and the death. Company is looking in to the safety measures regarding the products.
Environmental factors
Company is investing In the renewable energy in poor nations which would include the
environment. The company is also investing in the solar projects and wind panel project as well.
stake holders analysis
stake holder analysis is process in which the stakeholder are identified and theory skill sand
the interest are understood (Fozer, and et.al., 2017). Stake holders analysis is helping the key
organizational players and the goals of the company are specified. It would help min solving the
conflicts and the issues as well.
Determine the stake holders and identify the stake holders which are working in the
company. The stake holders include the employees of the company marketing, finance, product,
consultants as well.
For further analysis one must group the stakeholders and also try to prioritize the stake
holders according to their interest and the skills. The stake holders would also be divided by the
influence level and the participation level. The stake holders are divided into the four categories.
High power and high interest – it includes the stake holders like the which are having all the skill
and the abilities which are needed for completing the project (Barik. and Kumar 2018).
high power and low interest – it includes the stakeholders which include the having the high power
for completing the work but these are not having the interest in completing thee work.