Importance of Change Management in Transformation Process

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
MAIN BODY.......................................................................................................................................4
A critical assessment of the process used by organisations to determine their strategy..................4
An evaluation of the critical models and tools used by organisations to determine their strategy.. 5
Application of these model to IKEA...............................................................................................6
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability. ..............................................................8
CONCLUSION..................................................................................................................................10
REFERENCES...................................................................................................................................11

INTRODUCTION
Strategic management means the planning, monitoring, analysing and assessment of all the
activities which the organisation performs to meet its goal and objectives. Strategic management
help the business in achieving its long term objectives as this help in changing the organisational
strategies of with the change in the environment. It provides an overall guide for the company
which helps in directing the organisation toward the achievement of there goals. These strategies are
made by considering the internal as well as external environment of the industry in which the
company is operating.
IKEA is a multinational company that designs and sells furniture, kitchen appliances and
home accessories. The company was founded by a 17 year old Ingvar Kamprad in the year 1943.
the company became the largest furniture retailer since 2008 and the owner Ingvar Kamprad is the
8th richest person with a net worth of $58.7 billion.
MAIN BODY
A critical assessment of the process used by organisations to determine their strategy.
The strategic management is a prediction of the organization's mission purpose and vision
for where the company wants to stand in the future. For this IKEA need to have a strategic plan to
beset for its short, medium and long term goal. So, through proper strategic management the
company can gain competitive advantage and stay ahead of its competitor in the industry.
For proper planning of strategic management IKEA could follow the strategic management
process which include 5 stages.(Meyer, Neck and Meeks, 2017) These stages are explained below:
Clarify your vision
The first and foremost thing that IKEA should do while forming strategies is to clarify there
vision of the business. For this the company should define there short, medium and long term goal,
then identify the process of how to achieve these goals and finally identifying the task force for
completion of these objectives. By doing this IKEA will be able to set the direction in which the
organisation will go to achieve its goals.
Gather and analyse information
This stage includes gathering as much information as the company can to accomplish a valid
and achievable vision. Then the company should analyse this information to understand the need
and requirement of the business. This stage include analysis of both internal and external
information available, for this IKEA could use SWOT analysis. As much information the company
have there will be more option for them to analyse and select the best for them.
Formulate a strategy

This stage includes the final plan for the strategy to be implemented. This mainly includes
the identification of the resource available to the firm, feasibility of the strategic plan means the
pros and cons of the strategy, prioritising the task according to the importance. This is the
comprehensive plan upon which IKEA will work.(Lasserre, 2017)
Implement your strategy
This is the stage where actually the whole plan is being brought into action. IKEA will have
to be extremely careful about this step because if this doesn't work then the organisation may face
serious consequences. Each and every individual is made clear about the roles and responsibilities
they have to perform. Any additional funds required will be procured by IKEA at this stage. Once
all these are in place the employee will be ready to execute the plan. There should be proper
monitoring at this stage and the leaders should always be there to support any problem faced by the
employee in the implementation of the strategies.
Evaluate and control
In this stage the performance measurement of the plan is done. IKEA will evaluate all the
issues that were being faced during the implementation of the strategic plan. This include the
internal as well as the external issues being faced. The variances of the plan must be study and the
company should work upon the adverse variance. IKEA will learn what they could have done right,
so that these variances do not occur in the future.
An evaluation of the critical models and tools used by organisations to determine their
strategy.
The company can use different types of model for the evaluation of the strategies being formed.
Two of these model which are SWOT and PEST are explained below:
SWOT ANALYSIS
SWOT analysis is done as a part of overall company analysis to ensure what are companies
strengths, weaknesses, opportunities and threats for strategic planning. Performing a SWOT
analysis of the business and market conditions can help you clarify the future course of action. This
is discussion about the what is the meaning and purpose of performing a SWOT analysis.
Strength
 The main strength of the IKEA company is that IKEA is very well known company.
 The strength of the company include they have huge competitive advantages.
 It has huge brand recognition. The IKEA has great affordability.
 The company do their best in their business operations, what are the competitive advantage
that the firm have over there competitors, what are the employee skills and knowledge etc.