Business Strategy

Business Strategy

Contents
TASK 1.......................................................................................................................................................3
Analyze the influence of environment on chosen company.........................................................................3
TASK 2.......................................................................................................................................................6
Critically evaluating the internal environment and capabilities...................................................................6
TASK 3.......................................................................................................................................................8
Evaluate and apply the outcomes of Porter’s Five Forces model.................................................................8
TASK 4.....................................................................................................................................................10
Interpreting strategic direction...................................................................................................................10
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Business plan relates to the collection of strategic works and practices utilized by a
company in order to still stay successful in the field of industry. The company will conduct its
market research and operations in the best possible manner with the aid of organizational
practices. The organization’s decision on a corporate strategy is very essential as it gives a clear
objective, a full idea of the activities or actions in order to achieve the desired results in a
potential way (Pucheta‐Martínez and Bel‐Oms, 2019). IKEA is the Swedish furniture committed
to making ready to install furniture, kitchen electronics and much more for its prospective
consumers in terms of the respective report. The respective report is based on a strategic study
and operational decisions against the macro-environment component. Incorporating the
organization's existing strengths and using the VRIO and resource-based strategy for future
strategic research. It also involves a company study of competition utilizing the Porter five-
power model that is part of the corporate strategy. Finally, for Porter's conventional approaches,
the organization's strategic strategy is to be understood by designing the roadmap to acquire
valuable information and perspectives for taking successful decision-making.
TASK 1
Analyze the influence of environment on chosen company.
Vision- The IKEA’s vision declaration is 'The daily life of many people is good.' The business
model aids in the creation of a wide corporate portfolio with its practical and built home
furnishing goods so that they have greater exposure to their items at the best economic quality.
Mission: In IKEA's mission statement but the term above is business performs goals and goals.
Their goal is to provide one of the best furnishings for huge numbers in the most accessible price
range.
Objectives: They strive to better the lives of people who have a growing effect on their company
every day. They are very concerned with the atmosphere for the achievement of favorable
outcomes, like creating a distinctive picture on the sector.
PESTLE ANALYSIS:

Political factor- An organization is able to assess the business environment in order to collect
potential information and knowledge. In IKEA, which is an significant aspect of European Union
entry to UK markets. In this regard, it was analyzed that the entry and exit are not restricted or
restricted. The other feature is a 30-28 percent reduction in corporate taxes which helps increase
income in the foreseeable future (Rondi, Massis and Kotlar, 2019).
Positive aspects- Regardless of the reduction of the British economy's income tax rates, the rise
of ratability and competitiveness on the sector are helpful to IKEA.
Negative aspects- At the other hand, since there are no restrictions at entrance and departure,
there is significant pressure in the industry that impedes the organization's self-interest in
obtaining the desired outcome.
Economic factors: Interest rates, taxes and other regimes which directly impact the business
activities are part of the independent action. Diverse types of new policies and regimes must be
encountered in the UK economy because Brexit organizations.
Positive aspect: These were evaluated that IKEA is one of the best-known and highly established
companies focused on business development and sustainability. The increases in the GDP rate,
interest rates and consumer availability income have a positive effect on the respective
organization’s business activities.
Negative aspect- Changes in economic circumstances hamper their very critical market practices.
Social factors- Social factors are a transition of flavor and of consumer behavior, in it is the
organization's opportunity to monitor research to meet its significant inroads into the job.
Positive aspect-Due to changing consumer taste and preferences, the institution has been shown
a positive opportunity to expand its business opportunities. New technologies and services have
been valuable to their respective companies in that regard in the industry.
Negative aspect: As customer taste and tastes have increasingly evolved, it has been studied that
organizations find it very challenging to cope with such developments because market demand is
time to understand.