Business Strategy - Telecommunication Sector

Business Strategy -
Telecommunication Sector

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK1.............................................................................................................................................3
Influence of environment on IKEA ...........................................................................................3
TASK2.............................................................................................................................................6
Internal environment and their capabilities for IKEA ...............................................................6
TASK3.............................................................................................................................................8
Outcomes of Porter's Five Force Model......................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy is a method of business which is use by the organization for attract the
consumers, competing successfully in competitive market, marking company performance
stronger and for achieving the goal and target of an organization. Business strategies are also
beneficial clarity, focus and direction for business. With the help of business strategies, business
can better understand the current business environment and achieve long term business goals.
IKEA is European multinational organization which provides kitchen and home
appliances, accessories, ready to assemble furnitures and other home services. The company
headquarters is established in Netherland. In this study will describe about the influence of
environment on IKEA and also represent vision, mission and objectives of IKEA . The report
will also include the internal environment and their capabilities for IKEA . The report will also
explain about evaluating and apply outcomes of Porter's five force model. In the end of this
report will conclude the interpreting strategic directions.
TASK1
Influence of environment on IKEA
VISION: Company vision is “To create a better everyday life for the many people”
MISSION: The mission of IKEA is “To provide a wide range of well designed home furnishing
products at prices so low that as many as people can afford them”
OBJECTIVE:
 The company objective is for medium to long term target.
 Company design long strategy for organization growth.
PESTLE analysis: Pestle analysis a method which is use by the marketers or an organization for
evaluating and monitoring the macro environment components that influence and impact the on
company (Rastogi and Trivedi, 2016). The main components which are use in pestle as follows:
Political factors: Political environment means political and government conditions of a country.
Political forces are applied at every country, and they are very much responsible for affecting
business environment. Political stability of a country leads to economic stability and that is
responsible for better sales and the profit of an organization. Political factors are also impacted
and influencing the strategic decision and tactical conditions of IKEA (Zahari and Romli,
2019). Just because IKEA operate a various countries and each and every country political
stability, condition, laws and rules are different. IKEA sales their products in different country

that is impacted by the government attitude towards the foreign brand. The political condition of
a country also impact the supply chain of IKEA . Therefore, the decisions and the tactical action,
management of an organization have to design as per the government rules and norms. If a
country, political conditions stable than company can don't face any kind of problem at the time
of import and export.
Economical factors: Economic factors also play significant roles in the business climate or
environment. The situation of economical condition of country and the world decide that how
much revenue and profit will earn by the business. IKEA company is also impacted by the
economic condition of the market, but the management team of organization design and shape
the price of their products as per the people capabilities (Rastogi and Trivedi, 2016). Those price
strategies give chances to people to buy or purchases IKEA products also it will manage
company buy and sale process. Economic conditions such as recession, tax and interest rates,
low, policies extra are impacted the IKEA business environment also the strategic decision and
the tactical action.
Social factors: Social factors are those components, which are make impact and influence by the
person or individual attitude, lifestyles, personality, their belief and values. These factors are
impacted a business very deeply. For these it is important for an organization to learn about local
market before going for international market (Akter and et.al., 2016). For IKEA it is important
to learn about the social condition of a country, the age group of society, their interest, belief and
values. This awareness is helping an organization for surviving long time. If IKEA have detail
knowledge about their local market than they are efficiently sales their product in market and
customers also show their interest. But company policies and norms are differed from the
society, company products and service hurt the society people believe and values than it will be
directly impacted on the IKEA productivity and company can't survive in local market.
Technological factors: Technological factors is very important nowadays. At every level of
business such as marketing. Finance, sales etc. at all level technologies are use. IKEA is also
used various modern technology for kitchen appliances and furnitures in market. Company also
use modern technology for designing the home appliances (Zahari and Romli, 2019). But if in
condition, IKEA not adopt the integration of smart technology and features in its equipments
and products for enhancements their business, than it will affect the company production
process, marketing process and customers base. That will also responsible for creating new