IKEA Business and Environment Report - HND Business - Semester 1

This report provides a comprehensive analysis of IKEA's business environment, covering various aspects such as different types of organizations (private, public, voluntary), their purposes, size, and scope. It explores the interrelationships between organizational functions (marketing, HR, finance, etc.) and how they contribute to achieving organizational objectives and structures. The report also examines the complexities of different business structures, with a focus on IKEA as a case study. Furthermore, it identifies the positive and negative impacts of the macro environment (PESTLE model) on IKEA's operations and decision-making. A SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats. The report concludes with an evaluation of how these factors influence IKEA's strategic decision-making processes.

Businesses and businesses
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1.................................................................................................................................................1
P1) Different types and purpose of organisatio........................................................................1
P2. Size and scope of different types of organisation.................................................................2
M1) Discuss how the size, structure and scope of different organisations link to the
businesses....................................................................................................................................3
D1) Analysis the complexities of different types of business structures and interrelationships
of different organisation function................................................................................................4
LO2..................................................................................................................................................4
P3) Justify the relationship between different organisational functions and how they link to
organisational objectives and structures......................................................................................4
M2) Analyse the advantages and disadvantage of interrelationships between organisational
functions and its impact on IKEA company structures...............................................................5
LO3..................................................................................................................................................5
P4) Identifying the positive and negative impact the macro environment has upon businesses
operations with suitable examples .............................................................................................5
M3) PESTLE model ..................................................................................................................6
D2) Evaluating the impact of micro and macro factors have upon businesses objectives and
decision making for IKEA .........................................................................................................7
LO4..................................................................................................................................................7
P5) External analysis of particular organisation in order to identifying the strength and
weaknesses of the IKEA organisation.........................................................................................7
P6) Explain how strength and weaknesses interrelate with external macro factors of the IKEA
.....................................................................................................................................................8
M4) SWOT analysis and explain how they influence decision making ....................................9
CONCLUSION................................................................................................................................9
Books and journals ...................................................................................................................10

INTRODUCTION
IKEA is making home products, it sells furniture, bathrooms and kitchen items. It is
world largest furniture organisation. This reports identifying the different kinds of businesses
and environment in which they work (Armstrong and et.al., 2015). It included types of purpose
of the organisation. This file also providing the comparison between profit main company, non-
profit making organisation. It also explaining the organisational functional, structures, their
scope and objectives.
LO1
P1) Different types and purpose of organisation
Covered in PPT
1

2

3

4

5

6

7

Notes
Every organisation’s main aim is to expand their businesses and earn more profit; there
are many kinds of company divided into three sectors such as private, public and voluntary
organisation. Private business are at individual level. For example, IKEA run their enterprise at
own’s level, the purpose of this corporation to make profit, grow their work and increase market
share (Armstrong and et.al, 2015). Public firms refer to the run by government for group of
people. Every one pay taxes to authorities and the main purpose of public industry is to provide
best services to public. Voluntary firms are not owned by any single person, it is related to
specific types of persons like leaders, The main motive is providing services to social welfare.
Public: it is usually comprised of firms that are owned and operated by the government and
provide services to the community, it is similar to voluntary company in the public, they do not
main motive to generate a huge profit, for example education, electricity department main
purpose raised their fund through several of methods like taxes, fees through funds transfer from
the government (Crane, and Matten, 2016). TESCO is a public company and its main motive is
to provide satisfaction to their customer's but firstly they focus providing quality services with
reasonable prices to their consumers. The legal structures of this firm’s government also spend
their money for economic development and main purpose this company to full their customer or
public needs.
Private: IKEA is the private sectors it is multinational company. It has world's big retailer
industry, it main motive to expand their businesses and earn more profit mean this firms main
aim to operate more profitability. The purpose of this corporation is growing their current
business and also sells their product while using new technology to expand their work through
effective advertising, social media through or other innovation (Crane, and Matten, 2016). The
legal structure of this organisation, they follow are those rules and regulations which is make by
government like proper usages of resources, maintaining health environment to society.
Voluntary: British Red Cross is a non-profit making company in UK. The aim of this
organisation is to serve society welfare (Armstrong and et.al, 2015). This industry also helps in
finding missing persons, giving refugee support and also providing health related services and
8

also gives social support. The legal structures of this firm to government always supports these
types of organisation main motive to providing services social welfare.
IKEA is an international manufacturer of furniture; it is a retail company in UK. Its main motive
is to earn profit by providing variety of products to their customers by applying different
innovative ideas. The purpose of these firms is to provide quality products or fulfil their
customer's requirement (Cull and Zeiler, 2015). They also focus on their businesses, through
social media, email, text messages, or through existing customers. The size and scope of this
institution has spread their work all over the world and this organisation is also having large
numbers of worker in their enterprise. This firm provides consumer satisfaction and values of
this company are unique to others. This company has different functions of finances, human
resources, marketing, sales etc. and are very important to work in different ways and managed in
effective manner and maintain their inter personnel relationship among employees as well as
workers. TESCO is a public company and has large number of groceries stores, providing
electrical and clothing products. This company run their businesses and some time they sell their
products online.
The purpose IKEA is providing the best services to their customer and generating
profitability of the company (Cull and Zeiler, 2015). It is a British multinational and is the third
largest retailer organisation in the world. It also expands their businesses all over the world as
well as in UK market. They also earn huge amount and increase their market share. The scope of
this enterprise is large number of employees work with this and they also giving the best
opportunities to their worker. The main objective of this firm to develop their economic and
providing the best quality of services to their customer. This company has different functions of
marketing, human resources, finances department and managed their work in effective manner
and establishing the relationship with customer.
TESCO also improves their employees’ skill for providing effective services to their
consumers; they also get skills about unique functions of company by operating on the different
function of the corporations (Cull and Zeiler, 2015). This firm include many scope like work in
different types of functions because they expand their services in large quantity so they connect
with company main mission and using new technologies, communications, distribution channels
and developing their products qualities they also distribute their services in different nations The
9

main motive of this corporation is to give the best product to public and to focus on their
earnings. The value of this company, its objectives, working place environment is total different
rather than other public organisation, they also providing lot of opportunities to their employees’
as well economic people. It is very important aspect the size and scope of the different types of
organisation; it shows their organisation structures and performance of the businesses.
TESCO also improve their employees skill for providing the effective services tho their
consumer, they also get the skills about unique functions of the company by operating on the
different function of the corporations. This firms include many scope like work in different types
of functions because they expand their services in large quantity so they connect with company
main mission and using new technologies, communications, distribution channels and
developing their products qualities they also distribute their services in different nations the
main motive of this corporation to giving the best product to public then focus on their earning.
This industry make better marketing strategies for developing their variety of good and services,
they also maintain the interrelations with their whole staff (Cull and Zeiler, 2015). The value of
this company, its objectives, working place environment is total different rather than other
public organisation, they also providing lot of opportunities to their employees as well economic
peoples. It is very important aspect the size and scope of the different types of organisation, it
shows their organisation structures and performance of the businesses.
P2. Size and scope of different types of organisation
Covered in PPT
M1) Discuss how the size, structure and scope of different organisations link to the businesses
The size, scope and structures of the company is direct link to the business, because it is
very important aspect to run their businesses in long time so every organisations depend on their
size of the firm, structures and the scope of the businesses (Cull and Zeiler, 2015). These
different types organisation is also earned more profit is depended on their size like IKEA and
TESCO run their businesses all over the world. The main motive of these organisations earn
more profit and providing effective services to their customers. The objective of IKEA firms
expand their businesses in globally and generating more profitability ratio.
10