Business Strategy in Retail Sector

Business Strategy in Retail
Sector

Table of Contents
INTRODUCTION......................................................................................................................................3
LO1.............................................................................................................................................................3
P1 Frameworks to analyzing the impact and influence of the macro-environment.....................3
LO2.............................................................................................................................................................6
P2 Analyze an internal environment and capabilities of given organization.................................6
LO3.............................................................................................................................................................8
P3 Applying porter’s five forces model in a given market sector....................................................8
LO4...........................................................................................................................................................11
P4 Applying range of theories, concepts and models that interpret and devise strategic
planning in a given organization.......................................................................................................11
CONCLUSION........................................................................................................................................15
REFERENCES........................................................................................................................................16

INTRODUCTION
Business strategy refers to set competitive moves that are used by an
organization to attract customers, strengthen performance and gaining the competitive
advantages that helps in earning profits and achieves the company goals. It gives an
outline map that helps in accomplishing the task in a desired time. It defines all the
decisions and actions that is performed by an firm to gain the market share and
increase the market growth for longer sustainability in the market place. This project
report is based on the IKEA that is one of the multinational groups that design and sells
to kitchen appliances, furniture and home accessories. This report is based on
analyzing the macro environment and internal environment to know the capabilities and
abilities of a company to earn a revenues and profits. It also includes the porters five
forces model that helps in analyzing the rival firms and gain the competitive advantage.
This project gives information related to various models, concepts that assist in
understanding the strategic directions that is available within the business enterprise.
This module helps in giving the knowledge to enhance the performance and increase
the profits for longer survival of the firm(Akter and et. al., 2016).
LO1
P1 Frameworks to analyzing the impact and influence of the macro-environment
Mission
The main mission of the IKEA is to offer a wide range of functional home
furnishing goods at a best price so that many people can afford it. To provide valuable
quality products to attract large customer base and builds a long-term supplier
relationship(Johnson, 2016).
Vision
The vision of the IKEA is to a better everyday life for every people who use their
products and services. it is based on togetherness and caring for people and planet
according to that they earns their objectives.
Objectives

The objective of an IKEA is to providing well- designed home furnishing that
function, gives excellent quality and durability and low prices so that majority of the
person can afford to buy the goods offerings.
PESTLE analysis
It is an analytical framework that gives the knowledge about the external
environment which affects the operations of the company. a manager of an IKEA can
evaluate the macro environment by using PESTLE analysis(Thompson, Strickland and
Gamble, 2015).
Political - This factor inculcates the tariff rates, stability in central government,
tax regulation etc. in IKEA its supply chain creates an crucial effect because it is based
on China and India and they have low barrier of entry in the foreign market it helps in
increasing the presence of their brands and due to this they may plan to enter into the
Asian market.
Economical – It is the factor that includes GDP, growth rate, inflation rate,
purchasing power of the people in the country. in this the growth rate of the UK is stable
and because of this their people have high source of income where customers are able
to buy the products this will benefitted the IKEA to sale their products and earns a high
revenues(Woerner and Wixom, 2015).
Social – All countries have different culture, values, beliefs, customs, opinion
and perception. Here people of UK are very open minded and they are very advanced
because of this IKEA can sale their products with best quality furniture that attracts
numbers of customers in the sociality as they also follow CSR in which they are
responsible for socially benefit. This attracts the large number of people.
Technological – In today’s world people using advanced technology and
because of this if a firm need to explore their business they also use advanced
technology. In IKEA to attracts numbers of customers they follow a social media tool
where they promote their products to attract large number of customers and enhances