IKEA Case Analysis: Strategy Management

Student Name
Institutional Affiliation(S)
strategy management
IKEA Case analysis

P a g e | 1
Table of Contents
Introduction................................................................................................................................2
Background of IKEA.................................................................................................................2
Current strategy intent analysis..................................................................................................3
Reasons behind strategy intent failure.......................................................................................5
Recommendations/ Conclusion..................................................................................................6
References..................................................................................................................................8

P a g e | 2
Introduction
An organisation is usually established after considering strategic goal achievement
and this goal further defines purpose for its strategic operations. According to Tapera (2014),
management of the firms formulates strategies mainly due to reasons like to proactively craft
business formulas about how business shall be carried and to assert a thoughtful strategy to
build a road map for gaining competitive position by pleasing consumers and financial
performance progresses. Indeed, review made by Athapaththu (2016) also signifies that
effective strategy formulation along with strategic management can bring positive impacts on
organisation’s return on investments, revenue growth and earning. The strategy planning
should be given critical thought over otherwise which issues flinches thereby hampering
overall organisational productivity. The basic intention behind preparing this report is to
analyse effectiveness of strategic management and current strategic intent of IKEA to find
out why this intent may be failing to make recommendations for selecting new and effective
strategy.
Background of IKEA
Founded in the year 1943, IKEA is one of the most successful company dealing in
furniture manufacturing and retail chain whose headquarters is situated in Sweden. According
to the media reports, IKEA is worldwide largest retailer dealing in modern and functional
furniture’s (Davies, 2013). The company focuses upon interior designing related works that
have helped it gain competitive position in its industry. Besides providing furniture in cost
effective prices, the products of the IKEA show stances of environmental considerations that
has made IKEA gain much reputation in international marketplace. IKEA always follows its
vision statement stating, “To create a better everyday life for the many people” (IKEA,
2019). The learning capability of the firm have made IKEA flourish in furniture market
where they always try to appreciate local taste to make furniture according to customers