Supply Chain Analysis of IKEA

Running head: SUPPLY CHAIN ANALY
SUPPLY CHAIN ANALYSIS
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SUPPLY CHAIN ANALYSIS
Executive summary:
IKEA is a very popular business organization, which deals with home furnishing products. Their
all products are available at affordable price. To sustain in a competitive market, they follow
several strategies and, in this purpose, their vision along with the mission and strategic goals help
them. Through this report, the supply chain findings along with its operational analysis,
sustainability analysis of IKEA Company is described in a short way. To develop its business
IKEA Company, utilize dynamic SC alignment. On the other hand, they follow several
improvement programs to expand their business in different locations.
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SUPPLY CHAIN ANALYSIS
Vision of IKEA
In Sweden, IKEA is known as the largest furniture retail where it deals with home furnishing
products along with different products. It can be said that the vision mission and strategic goals
of a company help to determine its business strategies for its successfulness. IKEA is a globally
famous brand, so its vision is always ready to serve the people, which provides better products.
As per the vision statement of the IKEA brand, it creates a better life for their potential
customers every day. This vision helps the business of IKEA because of their growing
productivity. In addition to this IKEA, the brand explains that their vision is supported through
their business idea through their different functional home furnishing products, which are well
designed and available at a low price. Therefore, it is affordable to all kind of people.
On the other hand, the mission of the IKEA brand continually changed which explains that with
the help of proper business strategies it can communicate with the stakeholders along with their
potential customers that helps to fulfil all the vision statement of their business (Blackhurst et al.,
2018). In accordance with they have definite strategic values, which help to achieve their targets
through togetherness, simplicity, and cost consciousness along with daily basis improvement. All
these factors help in the expansion of their business.
Findings of supply analysis:
IKEA is known as a famous retail organization which produce assemble furniture. Hence, with
the help of their strong product base, they have earned the largest amount of revenue at the
international level from their quality products. From all the activities of this company, it can be
stated that their all activities run through the chain system, which is mainly known as the supply
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SUPPLY CHAIN ANALYSIS
chain process (Mishra et al., 2018). In this context after observing all the information, it can be
depicted that supply chain process of IKEA brand is regarded as the mixture of both science and
arts subjects. Therefore, with the help of applying scientific methods in this supply chain
procedure, IKEA gains advantages, disadvantages along with the quality of the products. These
results are calculated by those methods, which show the network of this concerning the business.
In accordance with through the analyzing of these supply chain procedures of IKEA brand, the
demand of the market can be evaluated in terms of their quality-based products which is offered
to their end user. IKEA starts to develop its activities of production to satisfy the demand of the
customers (Prajogo et al., 2018). The supply chain process of IKEA is established based
ontwoideas, which are as follows:
1. Their best qualities of the products are introduced in the market depending on the demand
of the market.
2. On the other hand, supply chain is considered a long-term process, which is maintained
through the links between the products.
Findings of operations analysis:
Based on the quality of the products, IKEA has negative feedbacks as their experience, which are
given by their valuable customers. After these feedbacks, Ikea decided to analyses their
operational activities with the help of a lean management system (Peng et al., 2018). Therefore,
because of the lean management system, to fulfil the demand of the customers, it leads times.
Along with decreasing, the number of resources, which are, defined mainly human and financial
elements that help in the productivities of this company. In accordance with as per the lean
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