Fundamentals of Management: IKEA Case Study

Fundamentals of management

Table of Contents
1. INTRODUCTION.......................................................................................................................3
2. The Company...............................................................................................................................3
2.1 Profile....................................................................................................................................3
2.2 Management approach of IKEA............................................................................................6
3. The business challenge................................................................................................................7
3.1 Description of the challenge..................................................................................................7
3.2 Impact of challenge on company...........................................................................................8
4. Reccommendation.......................................................................................................................8
5. CONCLUSION............................................................................................................................8
6. REFERENCES............................................................................................................................9

1. INTRODUCTION
Competing values framework is a model which developed by the Quinn Rohrbaugh which is
initially from the research of indicators of the effective organisations which is discovered in two
dimensions that is organisation focus and organisational preference for structure. Organisation
should be adaptable and flexible but also stable and control (Lindquist, and Marcy, 2016). With
the help of CVF in this report the different management theories of the IKEA is discussed that
helps to know the position of the company, the theories are porters five force model, SWOT
analysis, PESTEL analysis, management approach and the business challenges.
2. The Company
2.1 Profile
IKEA is a multinational brand who assembles furniture, kitchen appliances and home
accessories. IKEA is operating its stores in over 41 countries. IKEA stores are operated under
franchisee system in which most are operated by IKEA group and some are operated by the
independent owner. Financial income of the IKEA in the last year is EUR 1731 million. IKEA
has 220,000 employees worldwide in 2020.
Porters five force model
This model helps the business to know about their competitors or rivalry in the market.
This model shapes the organisation and helps in determining the strengths and weaknesses of the