Strategy and Response

STRATEGY AND
RESPONSE

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
SWOT and PESTLE analysis of IKEA.......................................................................................3
PESTLE influences on the Opportunities and Threats on the business......................................5
Suitable leadership style from Daniel Goleman’s leadership styles to meet their business
objectives with focus on changes in the business environment...................................................6
Critically commenting on IKEA's Corporate Social Responsibilities in the processes...............8
Conclusion.....................................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
Swot analysis helps in identifying the strengths, weakness, opportunities and threat of a
business and PESTLE analysis is used to find the impacts of external factors of a business. The
affects of PESTLE factors influences on the opportunities and threats, and to over come by the
strength of a company, and the suitable leadership style by Daniel Goleman's to meet the
objectives and goals of a organization. IKEA is a furniture and home accessories company. It
deals in functional home furnishing products at low prices. It is a Swedish founded, and its
headquarter is located In Delft, Netherlands. The report is consist of SWOT and PESTLE
analysis, with the influencing impacts on weakness and threats, and to overcome with its
strengths to find new opportunities for an organization, and also a suitable leadership style by
Daniel Goleman's , in respect to development of an organization. This report also discussed the
role of CSR in an organization.
MAIN BODY
SWOT and PESTLE analysis of IKEA
Swot analysis
It is a model that is used to identify the Strengths, Weakness, Opportunities and Threats
of an organization. It is used to evaluating a company's competitive position in the market, to
develop strategic planning for the organization.
Strengths
It is known as the excels of the organization, that separates the firm from its competition
in the market. IKEA has a loyal customer base, a strong balance sheet, unique techniques and a
strong brand (Lesovik, and et. al 2022). Its biggest strength is their clear vision, this will add a
value to its customers in respect to its market conditions. Another strength IKEA has its metrics
provided by the key performance indicators, which is assembled by its customers.
Weaknesses
These are known as the hindrance of the company, that stops an organization to perform
in its optimum level(Kim, Lee, and Park, 2022). It is well-known that IKEA is operating in
around the multiple countries of the world. Therefore, it is difficult to maintain the standards
across its locations in the world. There are many environmental concerns are also in respect to

facing the challenges by IKEA for example environmental policies to its customers and
shareholders.
Opportunities
This is referred as a favourable factor of organization, that give a competitive advantage
to the firm (Frank, Hoopes, and Lester, 2022). IKEA is looking for drawing an exposure plan, to
enter in markets of other countries like china. IKEA has the biggest opportunity that the firm has
the cost leadership.
Threats
These are as to factors that have the potential to harm the firm. The threat faced by IKEA
is, the constant innovation it has to do, to be focused on to stay ahead in the competition. IKEA
has to come up with new and advance strategies, to lead continuously in the market.
Pestle analysis
It is used as a tool by organization to keep a record of external factors, that are impacting
the business. PESTLE stands for.
Political
Political factors include the tax policy, environmental rules, tariffs and the political
stability (Kertzer, and Renshon, 2022). This can impact positive and negative both on IKEA as it
gets the support of political factors, it will help in the growth and development of IKEA, and
may affect negative if there is any change in policies under the political factors.
Economic
This includes the economic growth, interest, inflation, exchange rates and wage rates
(Jordà, Singh, and Taylor, 2022). It will affect positive o IKEA as it helps in attaining the
objectives effectively and efficiently. For example if the economic factors are favourable, like
low inflation and less interest, it will create a positive impact on organization.
Social
Social factors includes the cultural norms and expectations, health, population growth
rate and safety (Kordsmeyer, and et. Al 2022). It is helpful for IKEA to plan better in their
marketing analytics and strategy. In result, it will help in growth and expansion of IKEA.
Technological