Ikea Case Study Strategic Management
Added on 2021-02-21
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Ikea Case Study( Strategic ManagementUnit)
Table of ContentsINTRODUCTION...........................................................................................................................1External Analysis....................................................................................................................1Internal Analysis.....................................................................................................................4Analysis of Current Strategies................................................................................................9Articulation of Key Issues....................................................................................................10Recommendations................................................................................................................10Implications of Recommendations Provided........................................................................10REFERENCES..............................................................................................................................11
INTRODUCTIONBusiness Environment relates to the internal and external factors impacting upon theworking of an organisation (Ansoff and et. al., 2018). The company chosen for completing thisassignment is IKEA, found in the year 1943 and headquartered in Delft, Netherlands. It is amultinational corporation engaged in the designing and sale of ready to assemble furniture,kitchen items and house accessories. Thus, this company is identified to be belonging to RetailSector.External AnalysisBusiness environment is turbulent and thus keeps on changing in a rapid manner. Thisgives rise to the need of analysing and evaluating the factors that affect any business sector as theenvironment evolves in response to the diverse set of situations taking place within its confines.In this regard, the external analysis of Retail sector across the globe has been done to identify theopportunities and threats for the companies operating within it.Political/Legal: The political environment of most of the countries in which the companyoperates is stable and strong which strengthens the growth of retail sector companies. Severalcountries are regarded to be lucrative markets for MNCs intending to operate within Asia-Pacificregion. The legal environment of many of these in respect of retailing demonstrates that herebyexporters need to be aware that the nation is maintaining United Nations Security Councilsanctions and bilateral sanctions in relation to certain nations (About sanctions, 2019). Suchsanctions require that retailers comply with measures laid down within it. Economic: Across the globe, there are several countries which are developed and presentopportunities for the retail sector companies to facilitate growth. This takes place as suchlocations are equipped with excellent infrastructural, communication, transportation, logistics,supply chain and other essential facilities which are key to conduct operations of retail sector.This fosters retailers to make use of such amenities and carry out business activities to attaingrowth in near future.Socio-Cultural: It is often seen that people get easily influenced by the emergingconsumer trends and thus, keep high expectations from retail sector to launch productsaccordingly. In the year 2018, sportswear influenced by the athleisure trend witnessed the largestgrowth in the confines of global retail sector. Also, this trend is forecasted to expand more by the1
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