Analyzing Business Strategy for IKEA: Impact of Macro Environment and Internal Capabilities

BUSINESS STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1. Drafting about the stimulus about the external factor which is reflecting of macro
environment in organisation context......................................................................................1
Task 2...............................................................................................................................................4
P2. To making the detailed analysation of the about the knowledge of Internal environment
and capabilities of providing organisation through using systematic approaches.................4
Task 3...............................................................................................................................................6
P3. By implementation of the Porter’s Five Forces module to measured the competitive
market forces in perspective of company...............................................................................6
Task 4...............................................................................................................................................8
P4. Through evaluating the range of theories and concept of the managerial model for the
investigating the strategic plan for organisation perspective.................................................8
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Strategy is a propaganda where it optimised to get analyse and interpret about
the business activities and planning to execute various form of managerial method to supports of
conducting the optimum business related plans by organisation manager or leader to further
success factor (Phadermrod, Crowder and Wills., 2019). It also helps to predict about the
investments, hiring of workforce, raw material consumption and many more which are generally
counts in fulfilling the demands of their clients and accomplish the targets. Many formation of
business strategy is come across as to scrutinize the market behaviour and traits which is
essential to the vision, mission and objectives are highly considered as for the company
perspective which driven the company’s business goal as what to they have achieved in the
competitive Market (Saura, Palos-Sanchez and Correia, 2019).
Introduction about Company
The venture IKEA company is a Multinational enterprise which manufactured and
produced the exceptional level of basic home products that are driven through the assorted in to
make it actively in supermarket and it regulated through the Headquarter which is Swedish
Dutch as it having a branch in United Kingdom where it propounded the main retail products
which are provided the same product and services in very effective way (Anandarajan and
Harrison, 2019). It founded at 28 July, 1943 in Sweden, where total number of employees are
linked together through globally are above 2,00,000 by contributing their effective skills of to
accomplish all the segmentation about the company norms and targets and influencing to other
competitors a hard competition in competitive market.
Task 1.
P1. Applying appropriate framework analyse the impact and influence of the macro environment.
The macro environment is the form of terms and condition that exists in the economy
background. It involves the factor of gross domestic product, recession, inflation, market policies
etc, to making relation between general business cycle for measure the performance particular
organisation.
1

Mission: The mission of IKEA company is having a business idea that supports this vision by
offering a wide range of well-customized, functional home furnishing products at the prices are
economic range for people can easily afford (Pereira and et. al., 2019).
Vision: “To making creative in better way of people’s life in different manner”.
Objective: By having a strong and effective aim to accomplish the targets segments in retail
business for long period of sustainability that provides the sense of direction to getting the targets
done in the manner of disciplinary which occurred in corporate compliances. As they have a
motive making manufactured of qualitative product in a efficient manner where they can easily
influence the consumer needs and wants of the long terms durability aspect.
PESTLE Analysis
This method is commenced about the business get effected through external factor as it
can be in favour or different preference which will not considered to be profitable but it compiled
all the rules and regulation or in another words the factors which are in Pestle is instructed about
the business strategies approach to implies to get their achieve the targets such as political,
Economical, Social, technological, environment and legal.
Political: This element reflects the corporate and government laws such as new tax introduced,
trade tariffs, political stability, corruption, labour laws etc.. In the perspective of IKEA company,
as it is Netherlands based organisation and want to serve their business in United kingdom region
they have to considered all the rules and regulation which undertaken by UK government. Some
of policy traits could create impact in their business for example labour laws, corporate taxation
and others which they have make understand the UK regulation and prepare a strategy to assess
the potential market.
Economical: The influence of the economic feature is to be background of the utility in market
sector, where economic factor basically determine the certain economy performance in terms of
economic growth, disposable income, exchanges rates that generates impact for short and long
terms aspect. As United kingdom economy is having a better stability the value of Pound is high
in international market, through which IKEA company need to measure the UK economic aspect
in overall situation as well as the high value of pounds could generates the positive returns. But
2