Impact of Macro Environment on IKEA's Strategy

Business Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies...............................................................1
TASK 2............................................................................................................................................4
P2 Analyse the internal environment and the capabilities of a given organisation using
appropriate frameworks...............................................................................................................4
TASK 3............................................................................................................................................7
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.............................................................................................................7
TASK 4............................................................................................................................................9
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
IKEA was founded in the year 1943 by Ingvar Kamprad in Delft, Netherlands. The company
deals with offering a wide range of home furnishing products to a large customer base. In the
following project report, an attempt has been made to understand the impact of macro
environemnt of IKEA on its strategy and analyse the internal capabilities of the organisation. The
report also aims to evaluate the competitive position of the company in the industry and help the
managers in devising intensive and generic strategies for improving the business performance
and position in the industry.
TASK 1
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
IKEA is one of the most reliable and trusted ready-to-assemble furniture and home
furnishing product manufacturer which was founded in the year 1943 by Ingvar Kamprad. The
headquarters of the company are located at Delft, Netherlands. The company operates
internationally with more than 100 stores all over the world and its business model presents a
huge opportunity for future growth of the company.
The vision statement of the company reads “To create better everyday life for the many
people” which highlights the focus of the company in improving the quality of life of its
customers by providing better quality home furnishing. Designing team of the best individuals
helps the company to constantly endeavour to diversify its product ranges which could help in
realisation of its vision (Kristoffersson, 2014). The mission statement of IKEA is considered to
be “offering a wide range of well designed, functional home furnishing products at prices so low
that as many people as possible will be able to afford them”. This statement highlights the
objective of serving the customers with best quality products at very competitive prices which
allows more and more people to afford the products which are being manufactured by the
company. Many strategies and tactics are being used by the management of IKEA with respect to
the mission and the vision of the company like reduction in prices, opening stores to serve more
and more people etcetera. Some of the key strategy of the company includes using a country
specific management style, concentration on individual marketing instead of mass marketing,
business diversity etcetera. Company has established a clear objective of providing the best
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