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Business Strategy of IKEA Assignment Sample

Develop students’ awareness of different kinds of strategy in the telecommunication sector in the UK, with a focus on the case study of IKEA.

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Added on  2021-02-21

Business Strategy of IKEA Assignment Sample

Develop students’ awareness of different kinds of strategy in the telecommunication sector in the UK, with a focus on the case study of IKEA.

   Added on 2021-02-21

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Business Strategy of IKEA Assignment Sample_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1 ...........................................................................................................................................1Analysis of impact of macro environment on IKEA and its business strategies........................1TASK 2 ...........................................................................................................................................6Internal environment and capabilities of IKEA..........................................................................6TASK 3............................................................................................................................................9Evaluation of Porter's Five force model......................................................................................9TASK 4..........................................................................................................................................11Models, theories and concepts to interpret strategic direction for IKEA..................................11CONCLUSION..............................................................................................................................13REFERENCES..............................................................................................................................14
Business Strategy of IKEA Assignment Sample_2
INTRODUCTIONBusiness strategy is a summary about the way an organisation will be achieving itsobjectives by meeting its customers expectations in order to have competitive advantage for thefirm(Martinez-Simarro, Devece and Llopis-Albert, 2015). It leads to a systematic process thathelps the business to set its future goals in order to achieve. Present study is based on thecompany IKEA that is a Swedish multinational Retail organisation founded in the year 1943.Company is the world's largest furniture retailers and also design and sell different kitchenappliances, home accessories and other products. Report will include mission, vision, objectivesof IKEA and will critically evaluate the macro environment factors for strategic decisions.Further report will include internal environment focusing on strength and weaknesses and alsowill use VRIO analysis in order to analyse internal capabilities. It will also include Resourcebased view framework for analysing competitive analysis. Further report will evaluate porter'sfive forces model for IKEA and will produce strategic direction in order to improves thecompetitive edge with the use of Ansoff's matrix. At last report will create strategic plan forIKEA with the use of Porter's generic strategies. TASK 1 Analysis of impact of macro environment on IKEA and its business strategiesVision:-To create a better day to day life for the surrounding people.Mission:-To create better life for the customers with wide range of well designed home furnishingproducts at a reasonable prices so that people are able to afford the products. Objectives:-To offer wide range of home furnishing products with attractive design and good quality.To offer durable goods with effective functioning.To provide goods and services at reasonable price so that majority of people are able toafford them.PESTLE analysis:-It is framework that is used by IKEA in order to analyse the macro factors that impactsbusiness performance. Figure:- 11
Business Strategy of IKEA Assignment Sample_3
Political:-There are some political factors like policies set by the government, foreign trade,environment law, tax policy etc. that affects the business and its strategies. The supply chaindisruption is the major issue that affects IKEA due to political instability as many parts of supplychain is in Europe and political disruption there may affects the activities of supply chain. IKEAalso had faced criticism from the media of china as package boxes of IKEA represented Taiwanand China as two different and separate countries. Such critics and politics affected theorganisation in many ways(OFFER, 2017). However, company is making strategies to have political stability and apologised for itsmistakes that leads to both political and economic stability and helped for increasing sales of thebusiness in foreign market. Economical:-2Illustration 1: Pestle analysis
Business Strategy of IKEA Assignment Sample_4

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