PESTEL and SWOT Analysis of IKEA: Addressing Strengths, Negating Threats, and Recommended Leadership Style

Business

Table of Contents
INTRDUCTION..............................................................................................................................4
TASK...............................................................................................................................................4
Perform a PESTEL and SWOT analysis of chosen business......................................................4
Explain how the changes in PESTEL factors has influenced the opportunities and threats
business.......................................................................................................................................7
Comments on how the business is addressing their strength to negate threats and weakness
affecting their opportunities........................................................................................................8
Recommand a suitable leadership style from Daniel Goleman's that according to you will help
them meet their business objectives............................................................................................9
Critically comment on their corporate social responsibility in the process using evidence from
your research.............................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRDUCTION
Business basically refer to firm or enterprise which is essential for engaging the the
commercial, professional and industrial activities. But the ultimate aim of doing any type of
business is to increasing their revenue long term and also for achieving success. The company is
chosen for understanding the whole business activities is IKEA and it is a multinational retail
based firm. The company is established in 1943 which is headquartered in Netherlands and their
products are kitchen appliances, ready to assemble furniture, home accessories and other services
and goods. This report will covered PESTEL and SWOT analysis of chosen business, how the
changes in PESTEL factors has influenced the opportunities and threats in business (Akcigit and
Ates, 2021). It also covers in which way business is addressing their strength to negate threat and
weakness affecting their opportunities, recommend a suitable leadership style from Daniel
Goleman's which helps to meet their business objectives and Critically comment on their
corporate social responsibility in the process using evidence from your research
TASK
Perform a PESTEL and SWOT analysis of chosen business
PESTEL Analysis -
It is a method which is used by IKEA firm for analysing the macro external factors
effectively which are described below -
 Political – It refers to those factors which effects the performance of organization in
political manner. It includes, trade regulations, policies, rules, laws and other type of
government activities. In context to IKEA, management must follow the various policies
of government for running their business successfully. It means when management
follows their policies then definitely their popularity and service activities are easily
increased at large level in various locations.
 Economical – It is related to those factors which effects operational and services of
organization economically (Bocken, Morales and Lehner, 2020). It includes salaries of
employees, interest rates, taxation, fixing of price and others. In context to IKEA,
management must use different type of pricing strategies for attracting the consumers in
large number. It includes various beneficial schemes, discounting offers and so on. Due