Strategic Management: Analysis of IKEA's Mission, Vision, Objectives, and SWOT Analysis

STRATEGIC
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Mission.........................................................................................................................................3
Vision...........................................................................................................................................3
Objectives....................................................................................................................................3
Values..........................................................................................................................................3
SWOT analysis............................................................................................................................4
Porter’s five forces.......................................................................................................................6
Importance of change management based on the complexity of the transformation process.....8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Strategic management is the management activity through which it tends to develop
organization’s working strategy such that company is able to achieve its targets this is done by
considering company’s resources. IKEA is multinational organization which provides designer
house hold furniture products at an affordable pricing to its customers. Analysis of company’s
performance in terms of its mission and vision is done in this report. Effectiveness of
organizational strategy in terms of its goal achievement capabilities is analysed. With that
company’s efficiency in terms of managing organizational activities is also analysed in this
report. Analysis of company’s strength and weaknesses in terms of tacking with threats and
opportunities is also analysed in the report. Evaluation of IKEA's strategic performance in terms
of four aspects like its strength, weaknesses, opportunities and threats is done in the report (Zhou
and et.al, 2019).
MAIN BODY
Mission
The mission slogan of IKEA is as following “Our business idea supports this vision by
offering a wide range of well-designed, functional home furnishing products at prices so low that
as many people as possible will be able to afford them” (Mission statement academy, 2020).
Vision
The vision statement of IKEA is “To create better everyday life for the many people”
(Mission statement academy, 2020).
Objectives
“To offer a wide range of home furnishing items of good design and function, excellent
quality and durability, at prices so low that the majority of people can afford to buy them” (Find
any answer, 2020).
Values
“Leading by example, will power and humbleness, differentiation, desire for innovation
and creativity, enthusiasm and togetherness, and consciousness for cost.”

SWOT analysis
It is very important for the organization to know their strengths and weaknesses in the
market so that there is going to be effective decisions and planning can be done effectively in the
market. The internal factors have to be well maintained therefore IKEA would use this
framework in order to be able to analyse the market effectively and efficiently making the
organization have higher profitability and performance in the market as well.
Figure 1: Ikea Swot Analysis 2016
(Source: Cheshnotes, 2016)
 Strengths
IKEA is having a lot of work experience and knowledge of the market therefore they will be
able to make the right decisions and planning for the organization in order to be able to gain the
competitive advantage so that there is going to be higher performance. The quality of the
products and services of IKEA is very high making the organization has a stable and loyalty of
the customers in the organization which is going to help the company have higher productivity in
the organization (Meyer, Neck and Meeks, 2017). The culture of having a strong sustainability in