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LO3. Evaluation of the analysis by using the Porter's Five Forces model

   

Added on  2021-02-19

16 Pages5494 Words58 Views
Business DevelopmentLeadership ManagementProfessional DevelopmentLanguages and CulturePolitical Science
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BUSINESS STRATEGY
LO3. Evaluation of the analysis by using the Porter's Five Forces model_1

TABLE OF CONTENTSINTRODUCTION:..........................................................................................................................1LO1. Analysis the impact and influence on the company and their strategies from the macroenvironments:...............................................................................................................................1LO2. Internal environments and capabilities of the company.....................................................3LO3. Evaluation of the analysis by using the Porter's Five Forces model:.................................5LO4. Theories and models to assist the understanding and interpretation of strategic decisions:......................................................................................................................................................7CONCLUSION..............................................................................................................................10REFERENCES..............................................................................................................................11
LO3. Evaluation of the analysis by using the Porter's Five Forces model_2

INTRODUCTION:Business strategy refers to the actions and practices which used by the company for thesuccess and growth of the company. These strategies help to improve the performance of theemployees. The business strategy is the way to reach the success and reach the objectives of thecompany. Business strategy is the effective planning of the company to stand in the competitivemarket to achieve their desired objectives. It focuses on the best utilization of the resources andminimize their weakness to achieve the specific objectives of the company in the long run. Theeffective practices of the company will help the business in their future and present working ofthe company. The aim of the organization is to maintain the position of the company andincrease their performance of the company. It will help to minimize the threats of the businessreduces the risk from internal and external factors. In this report IKEA is the organization whichis a furnishing company. This report will analyse the impact on the IKEA from the macroenvironments and on the strategy of the business operations. There is also the description of theinfluence of macro environments on the company. There have lots of benefits ability of theinternal environments.LO1. Analysis the impact and influence on the company and their strategies from the macroenvironments:Mission:The mission of the IKEA is to expand their business globally and achieve the and growthof the business for the long run. And provide different types of the home furnishing products andquality services (Aims and objectives of IKEA, 2019).Vision:The vision of the IKEA is to fulfil the demands of the customer by their effectiveproducts and services and creates the perfect and better life for the people of the world.Objectives: Maintain the good image of the brand in the competitive marketFocuses earning the greater revenuesProduction of the furniture should be affordable to every oneMaintain the customer loyalty and wins the trust of the customer (IKEA missionand vision, 2019).PESTLE analysis:1
LO3. Evaluation of the analysis by using the Porter's Five Forces model_3

PESTLE analysis refers to the method and steps taken by the business to examine theexternal factors of the company such as political, environmental, social technological legal andeconomical. To increase the productivity IKEA measure all the externals which affects thesuccess of the company (Evans, and et.al., 2017). These externals factors are explained below:Political factors:This factors says that the interference of the government in the business operations of thecompany by various laws, taxes, tariffs etc. IKEA uses this strategy to identify the effects of thepolitical on their business in the economy. The problems in the supply chain is the issue relatedto the factors of political so the IKEA try to solve the issue to achieve their success. By maintainthe good relations with the governments sop they make the business of import and exports easierwith minimum taxation and law (Parnell, 2016). For remaining stable in the market and increasetheir revenue IKEA is fully depended on these relationships. From this IKEA will extend theirbusiness globally easily.Positive impacts- political factors helps to maintain the good relations with the govt. so itwill help to minimize the law and regulations across the sale of international boundaries andrevenue will increase.Negative impact. These political factors influence the business of the IKEA becauseevery country have different rules and regulations so it is difficult to understand the rules of allthe copuntries.Economic factors:The business of the IKEA and decision-making is affected by various economic factorssuch as growth of the economy, inflation rates, interest rates and exchange rates. With the help ofthe global economy the business of the IKEA measure their profits and revenues in theinternational markets. IKEA focuses to set their prices of the products and services at theaffordable rates so that it will help them to handle the pressure from the fluctuations in theeconomy. In the IKEA these economic factors affects the strategy of pricing whenever theywanted to raise their prices. IKEA is famous for the low prices products and services.Social factors:Culture, populations and age are involved in the social factors and these factors affectsthe sales of the business.The business of the IKEA is affected by these factors because companyshould have the knowledge of the local culture, growth in the populations etc. these factors will2
LO3. Evaluation of the analysis by using the Porter's Five Forces model_4

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