Challenges Faced by IKEA: Analysis and Recommendations

Individual Report on
challenge

Table of Contents
INTRODUCTION...........................................................................................................................3
The Company...................................................................................................................................3
Profile.....................................................................................................................................3
Management approaches........................................................................................................7
The business challenge....................................................................................................................7
Description and impact of challenge on company.................................................................7
RECOMMENDATIONS.................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Competing value framework is considered as an effective tool for applying the culture of
organisation and its dynamics to perform several functions in an appropriate manner (Jiang, Jia
and Gong, 2018). For this report, the chosen company is IKEA as it is a multinational
Conglomerate that put emphasis on the different marketing and types of products and services
like furniture, kitchen appliances and so on to satisfy the concerning user. Respective company
was founded in 1943 by Ingvar Kamprad. The report leads to cover details regarding the
description of several challenges which are faced by company to impose the direct impact of
company. There are different types of models like Porter’s five forces, PESTLE analysis and
SWOT to conduct the research which is related to the challenges which are faced by the
company in an effective manner. There is the discussion related to the management approach
from CVF and recommendations are also provided to the particular company.
The Company
Profile
IKEA is considered as the international Conglomerate the put emphasis on the marketing
different types of commodities like Kitchen appliances, furniture and so on for satisfying its user.
The company established in 1943 by Ingvar Kamprad.
 The vision of IKEA is to accomplish leading position across the world.
 The mission of IKEA is to offer the creative and different quality of products and
services to their potential customers.
 The objective of IKEA is to enhance the overall sales by 20% in upcoming 4 months.
SWOT Analysis
STRENGTHS WEAKNESSES
 Because of having effective and wide
variety of products across the world
tends to attract large number of
customers towards the company in
terms of enhancing their sales and
revenues (Dencher, 2021).
 It is analysed as the prominent strength
 They tend to operate within the several
countries as there is the corruption
because of the expansion of businesses
in Russia which is the main weakness
for an organisation.
 Environmental issues IKEA need
putting in check related to their