(Solution) Business Strategy of IKEA
Added on 2021-02-19
19 Pages5062 Words74 Views
Business DevelopmentLeadership ManagementLanguages and Culture
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BUSINESS-STRATEGY
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Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Impact and influence of macro environment on organisation and its business strategies...........1TASK 2............................................................................................................................................5Assessment of internal environment and capabilities.................................................................5TASK 3............................................................................................................................................8Evaluation of a given market by applying Porter's Five Force Model.......................................8TASK 4..........................................................................................................................................11Applying of theories, concepts, models to understand and interpret strategic directionsavailable to a company..............................................................................................................11CONCLUSION..............................................................................................................................11Reference.......................................................................................................................................12Books & Journal............................................................................................................................12
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INTRODUCTIONBusiness strategy can be denoted as a set of competitive norms which are used bybusiness to attract customers, strengthen their performance, get a competitive advantage andfinally helps in achievement of organizational objectives. It basically outlines what should bedone by the company and way in which various task have to be planned and initiated arediscussed in planning of business strategy. This report is based on IKEA which is a multinationalgiant deals in retailing of furniture, home accessories & Kitchen related appliances. It was startedin 1934 and founded by Ingvar Kamprad. It is having presence in 48 countries across world. Itsfirst store was opened in Smaland in year 1958 and then they expanded in Europe and otherdifferent countries. IKEA believes in satisfying household furniture need of their segment ofcustomers which they re targetting in different countries where they are having their storeslocated. This report consists of influence of macro environment on company and in forming itsstrategies, assessing internal environment of business, application of porters five force model,and lastly various concepts , theories and models are applied so that company can get directionsin which they have to plan their actions(Morton, Wilson and Cooke, 2015). .TASK 1Impact and influence of macro environment on organisation and its business strategiesMission:- IKEA has a mission that they want to offer wide range of home furnishingitems with good design, better quality, durability and function. At same time they want tooffer such products at low prices. Vision:- Vision of this company is to create a better everyday life for their customers. Objectives:- The company has laid objectives that they want to reach different parts ofworld, they are focussing on giving price based competition to their existing competitorswho belong to this industry. PESTLE analysis: this analysis will provide detailed information of IKEA about the externalanalysis of this company. External analysis is very important to be done for companies tounderstand implications of such plans on decision making of company. This tool helps inunderstanding overall impact of macro environment on company. Below mentioned is theexternal analysis of IKEA:1
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Political:- political factors prevailing in a country also affect a company, supply chaindisruption prevailing in UK is a issue which is faced by IKEA. They are planning toenter Asian market but they have to deal with lot of complexities, huge part of thiscompany is present in the European market and political instability present there is goingto effect supply chain activities of IKEA(Rasula, Vuksic and St,2016). Economic:- countries which are having emerging economies help in growth of companyas a whole. It was because of the recession situation worldwide that IKEA faced declinein their overall sales. In 2007 recession situation had a serious impact on company's salesand their profits dropped but after that comply tries to overcome from such situation byadopting new strategies Prices of products were not managed properly and there werelosses of jobs by the people who were working in this company. With the economicsituations getting stable this brand is having better profits and higher sales. 2
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