Leadership and Business Environment- case study

Leadership and
Business Environment
– Case Study

Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
SWOT and PESTLE analysis of IKEA.......................................................................................3
Evaluate the manner in which the factors of PESTEL are influencing opportunities and threats
in business. Also comment on the way company is using its strengths for handlings its threats
and weaknesses affecting their opportunities..............................................................................5
Recommend a leadership style from Daniel Goleman leadership style that will help the firm in
attaining its objectives.................................................................................................................5
Comment on Corporate Social responsibility of IKEA...............................................................6
PART 2............................................................................................................................................7
Reflection report..........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business Environment refers to the surroundings of a firm in which it operates. It can be
internal or external. Change in it affects the whole business which can be positive or negative. It
is important for companies to analyse it by application of various tools and techniques (Bhagra
and Sharma, 2018). The company chosen in this report is IKEA. It is Swedish company
headquartered in Dutch. It deals in manufacturing ready to assemble furniture, home and kitchen
appliances and many other goods. The report is divided into two parts. First part conduct analysis
of firm through SWOT and PESTLE. It also mentions the manner in which the factors of
PESTLE are affecting the opportunities of firm and the way company is using its strength.
Further, it recommends on a leadership style that can be adopted by firm. It also comments in
corporate social responsibility of business. At last, it provides a reflection report.
PART 1
SWOT and PESTLE analysis of IKEA
SWOT analysis refers to identification of strengths of a firm that can be used to tackle its
weaknesses and the threats which can harm the ability of grabbing opportunity for business.
Here, is a SWOT analysis of IKEA.
Strengths Weakness
 Its biggest power is its vision of
providing value to the customers. So
they try to grab all information about
the client which helps them in making
them unique from its competitors.
 They create innovative products and
make them easy to transported and
assemble.
 The brand is widely recognised.
 There are some complaints related to
the product and behaviour of
management with employees for IKEA.
This tarnishes its image.
 The quality of products are not that
good (Caseiro and Coelho, 2018).
 They are being criticised on social
media.
Opportunity Threats
 It has chance to grow in more countries
as the company is not operating in
many nations.
 Competition is biggest challenge to the
company. They are providing goods at
low cost.