PESTLE and SWOT Analysis of IKEA: Leadership and Corporate Social Responsibility

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE Analysis of IKEA.........................................................................................................3
SWOT Analysis of IKEA:..........................................................................................................5
Evaluates the changes in PESTLE factors that influence the opportunities and threats in the
business.......................................................................................................................................5
Leadership styles that will help the business in meeting its objectives......................................6
Critically comment on their Corporate Social Responsibilities in the processes using evidence
from your research......................................................................................................................7
REFLECTION............................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The contemporary business environment is highly competitive and evolves continuously
with the change factors of the macro and micro environment (RUSLIATI and et. al., 2020).
With the growing technology, diversity, globalisation the business to stay competitive requires
the effective leadership. A leadership is the act of guiding, teaching, supporting and mentoring
the people within in an organisation through appropriate leadership styles. The present report is
the discussion on the business environment and leadership of the “IKEA”- a Swedish originated
an Dutch headquartered multinational retail that designs and sells ready to assemble home
accessories, furniture, kitchen wares and other goods and home services. From many years the
IKEA is termed as the world's largest furniture retailer. The report will outline the SWOT and
PESTLE analysis for the IKEA. Further their is evaluation of the Pestle factors to address the
strengths to negate the threats and weaknesses affecting the opportunities. There is the
recommendation of the suitable leadership style to meet the business objectives of the IKEA.
The corporate social responsibilities are discussed in the report. In the end there is the reflection
on the knowledge gained for the project.
MAIN BODY
PESTLE Analysis of IKEA
PESTLE Analysis is one of those tool that is used by the organisation to evaluate the
external environment in which the business operates. This tool covers the six factors in the
external business environment that has ability to influence the operations and profitability of the
business. Further the analysis is covered in context of IKEA (PESTLE Analysis of IKEA, 2018):
 Political factors: IKEA is an international company and they have their operations
running in more than 41 countries which exposes the business to several types of political
conditions (Nandonde, 2019). The countries in which the political stability is not there and
the government has implied several restrictions on the businesses then in that the case the
operations of the company will get negatively impacted. In case there are less restrictions
and there is more political stability in the country in which they are operating then that
will positively impact the business.