Analysis of Managing Business Activities at IKEA to Achieve Results

This report analyzes IKEA's business activities, exploring key functions, processes, and dependencies within the organization. It evaluates methodologies for mapping processes to IKEA's goals, focusing on quality gateways and operational planning using MBO or Planning Hierarchy models. The report outlines SMART objectives to align resources, implements systems for efficient operations, and details monitoring and control of production processes. It also covers quality systems, the TQM philosophy, and improvement recommendations. Furthermore, the report addresses risk assessments, health and safety regulations, and policy reviews within IKEA, providing a comprehensive overview of its management practices and strategies.

Managing Business Activities
to Achieve Results

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Explain the key functions and processes of IKEA and evaluate the dependencies between
processes and functions. .............................................................................................................1
1.2 Select and justify a methodology that can be used to map any process to IKEA’s goals and
objectives. ...................................................................................................................................2
1.3 Evaluate the output of the process and the purpose of a quality gateway in IKEA’s
Operations Department. .............................................................................................................3
TASK 2............................................................................................................................................4
2.1 Create one Operational Plan by applying either MBO or Planning Hierarchy Model for
your own area of responsibility...................................................................................................4
2.2 Write three SMART objectives relevant to your operational plan to align people and other
resources in an effective and efficient way.................................................................................4
2.3 Implement any two appropriate systems to achieve objectives in the most efficient way, on
time, to budget and meeting standards of quality associated with IKEA. .................................5
2.4 Carry out work activities meeting the operational plan through effective monitoring and
control of the production process at IKEA.................................................................................6
TASK 3............................................................................................................................................7
3.1 Design any two quality systems to manage and monitor quality standards within IKEA. . .7
3.2 Explain the ‘Total Quality Management (TQM)’ philosophy .............................................8
3.3 Recommend any three improvements which align the objectives and/or goals of IKEA.....8
3.4 Report on the wider implications of proposed changes within IKEA company. ................9
TASK 4............................................................................................................................................9
4.1Carry out risk assessments as required by legislation, regulation and organizational
requirements................................................................................................................................9
4.2 Demonstrate how health and safety regulations and legislation applicable in specific work
situations are correctly and effectively applied to IKEA. ..........................................................9
4.3 Carry out a systematic review of health and safety policies and procedures within IKEA in
order to ensure they are effective and compliant with legislation. ..........................................10

4.4 Carry out a practical application of health and safety policies and procedures in the
workplace at IKEA. ..................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
In the modern era, management is an important concept because it aids to manage and
control all business activities and operations in an effective and efficient manner. Due to this,
employees of the firm can significantly perform their tasks with better outcomes and results.
However, it is required to manage business activities in an impelling style so that employers of
company can achieve their goals and objectives. This report is based on IKEA which is a
Swedish multinational organisation that was found in the year 1943. It provides ready to
assemble furniture, kitchen appliances and other home accessories to customers. The present
report will define major key functions of IKEA as well as systematically justify the methodology
that can be used by it for achieving set goals and objectives. Along with this, an effective
operational plan will be prepared with the help of MBO or planning hierarchy model.
Additionally, SMART objectives which will correlate with the operational plan will be used.
(Anderson and Anderson, 2010)
TASK 1
1.1 Explain the key functions and processes of IKEA and evaluate the dependencies between
processes and functions.
IKEA is a Swedish multinational company which sells ready to assemble furniture, kitchen
appliances and home accessories to its customers as per their demand and requirements.
Therefore, an organisation plays several functions at workplace with the help of this a company
can significantly supply its products and services to consumers. Thus, business process basically
categorised into three major sections such as management, operational and supporting process. In
other words, there are elaborating several key functional areas of IKEA such as protection and
security, finance, human resources, IT, marketing, sales, designing and so more. (Carroll and
Shabana, 2010)
 IT (Information technology): At this time, it is necessary to implement and use new
technologies at workplace of IKEA so that employees of the firm can effectively produce
and provide better quality of services to customers.
 Marketing: It is one of the major functions of IKEA without which an organisation
cannot get success and achieve their goals. It aids to attract high number of customers
towards company due to this respectively increased profitability and productivity.
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 Designing: IKEA sells designer items, furniture and accessories at world-wide level due
to this designing department is an important function of this organisation. Further,
without effectively performing this function, it cannot get success and achieve their goals.
On the other hand, at this time, IT system positively impacts on business firm. With the
help of this, they can achieve their goals in an effective way. (Jeston and Nelis, 2014)
 Cost management of inventory
 Managing production schedule
 Coordination of JIT (Just in time) program
 IT department aids to reduce the transaction cost
Illustration 1: Inter relation between logistics and technology
(Source- Barjis, 2011)
1.2 Select and justify a methodology that can be used to map any process to IKEA’s goals and
objectives.
Generally, process mapping is a essential concept for every business firm because it aids
to understand work process of IKEA company. It is a technology which can be used by selected
business firm for developing and concerting workflow into a visual diagram in an effective and
efficient manner. However, success of every business firm depends upon core functions of the
company due to this they focuses on to manage and control all over activities and operations.
In the other words, process mapping provides appropriate base to an organization so that
they can statistical control chart of every departments of the company. There are concluded
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several modern tools and techniques which can be used by IKEA company such as QFD and
PDCA, simulation and so more it aids to achieve organizational goals and objectives.
(Achtenhagen, Melinn and Naldi, 2013)
1.3 Evaluate the output of the process and the purpose of a quality gateway in IKEA’s
Operations Department.
There are explaining an effective gateway procedure in which included several steps
which explaining under follows:
 Requirements elicitation: In the first stage of this process, effectively identify the major
requirements and demand of customers which they expect from the IKEA company.
 Analysis of requirements: There are several demand and expectations of the customers
from the business firm which they wants to get for fully satisfaction. Thus it is required to
be established an agreed set of requirements so that manufacturing department can
significantly full fill the needs. IKEA also should identify potential ambiguities, omission
and overlapping of demand. (Closs, Speier and Meacham, 2011)
 Representation: In this stage, company significantly document the all over requirements
in a formal manner so that production department of the business firm can systematically
produce better quality of products and goods for customers.
 Specification and validation: Its a last step of gateway process in which company
focuses on validation of requirements of consumers. Quality of goods is one often major
aspect in this process due to this there are using different prototypes and technologies for
evaluating and analyzing the quality standards of the demand.
In the other words, the gateway process has been helps to provides high and effective
quality of services and facilities to customers as per their needs. While this process use within
the lean management production technique then respectively reduce the total production cost and
wastage.
TASK 2
2.1 Create one Operational Plan by applying either MBO or Planning Hierarchy Model for your
own area of responsibility.
Every business firm focuses on to manage and control all over operations of the business
firm in an effective and efficient manner. With the help of this, company can significantly
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provide better services to its customers and increased their sales and revenue. In this plan,
systematically allocate human, financial and physical resources as per the needs for attaining
long and short term goals and objectives.
Along with this, MBO (Management by objectives) is an important aspect for every
business firm because with the help of this an organization can effectively enhance their working
performance and attain their targets. In order to this, for producing operational plan for IKEA
company so that MBO can be used by the business firm. (Armstrong and Taylor, 2014)
 Data collection: It is the first stage of operational plan of IKEA company, in this stage
collect the data and information with the help of appropriate methods and technologies.
 Demand planning: After that prepare an effective demand planning as per the collected
data. With the help of this can easy to identify the customer's requirements and their
needs which they expect from the company.
 Supply planning: In the next step of this plan, after examining the demand of customers
from the IKEA then should be effectively prepare the supply planning by the employees
of company.
 Pre SOP meeting: In which significantly conduct pre sales and operational planning
meeting with employer and should be effectively discuss all requirements and demand of
customers.
 Execute SOP meeting: This is the last stage of operational plan, in which finally execute
the SOP meeting and take appropriate decisions regarding production of products and
goods for consumers.
2.2 Write three SMART objectives relevant to your operational plan to align people and other
resources in an effective and efficient way.
IKEA is one of the leading multinational company which sells ready to assemble
furniture, accessories to customers as per their needs and requirements. Every business firm has
their own long and short term targets and goals which they wants to be achieve in future in an
effective and efficient manner. Therefore, it is necessary to be adopt and use appropriate methods
for achieving goals and objectives. Thus, there are explaining three major SMART objectives of
IKEA company.
 Digital channel contribution objective: IKEA business firm wants to be achieve 10%
online revenue contribution in next 2020.
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 Acquisition objective: It seeks to be acquire 50000 new online consumers in 2018 to
2019 at the average cost per acquisition (CPA) of £30 within the average profitability of
£ 5. (Donate and Guadamillas, 2011)
 Engagement objective: Enhance active customers purchasing power at least once a
quarter to 300000 in a market place in 2020.
2.3 Implement any two appropriate systems to achieve objectives in the most efficient way, on
time, to budget and meeting standards of quality associated with IKEA.
Every organization wants to be control and manage their business activities and
operations so that they can achieve their goals and objectives in an effective and efficient
manner. Due to this, employers of the firm focus on to implement and use several type of
appropriate systems within the organization so that company can get success. However, effective
management systems aids to control cost and reduce the level of wastage. With the help of this,
business firm can significantly provides better quality of services and products to consumers as
per their expectations. (Zang, 2011)
On the other hand, IKEA can be used management of the system in the chronological
form at the operational level because it helps to reduce irrelevant cost of the company.
Additionally, it can be manage and control business activities in a impelling manner.
Furthermore, IKEA also can be adopt MBO (management by objective) it is one of the major
management system for every business firm it helps to control operations as well as enhance the
working performance. With the help of this, customers can attain their long and short term
targets and get success.
2.4 Carry out work activities meeting the operational plan through effective monitoring and
control of the production process at IKEA.
There are several type of methods and techniques which can be used by IKEA company
for controlling and monitoring production process in an effective style. With the help of this it
can be provides better quality of services and products to customers as per their needs and
requirements due to this they can get success and achieve their goals. Therefore, IKEA can be
used Gantt chart within the organization. It aids to manage all business activities with proper
required time frame so that employees of the firm perform their operations as per the planning
and decided standards. Additionally, with the help of this method can significantly highlights the
major elements of activities which will performed by the company. (Testa and Iraldo, 2010)
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TASK 3
3.1 Design any two quality systems to manage and monitor quality standards within IKEA.
It is required to be manage and control all over business activities in a effective and
efficient manner so that they can provide effective and better quality of services to customers. So
that they can get fully satisfaction towards their needs and requirements. Therefore, there are
designing two quality system which can be sued by IKEA for managing and monitoring quality
standards of IKEA products and goods in an impelling manner. (Farndale, Scullion and Sparrow,
2010)
 IKEA can be adopt a system for getting feedback and reviews from its customers thus it
can be send a feedback letter to consumers so that they can full fill letter as per their
experience and satisfaction level. With the help of reviews, company can take appropriate
decisions as well as update some changes in existing products and goods of IKEA.
(Barjis, 2011)
 In the other words, IKEA can be take suggestions from the experts of several departments
because it is required for every production department of the company should check the
quality of products and goods before launching within the market place. Due to this,
IKEA can check their accessories and furniture from the experts. Thus, as per the experts
advice and suggestions employers and production department can implement the
appropriate changes.
3.2 Explain the ‘Total Quality Management (TQM)’ philosophy
Total quality management is one of the major aspect for every organization because it
aids to manage and increase quality of company's products and goods in an effective and
efficient manner. This method can be used by IKEA for getting long term success through
customer satisfaction. Along with this, Total quality management concept used at wide level by
most of the companies for increasing quality of services and products. Due to this, they can give
proper satisfaction to customers as per their needs and requirements. (Trkman, 2010)
This method can attained by relationship of all quality related major functions and
processes of the business firm. TQM can be adopt for measuring and managing quality of
products. In which concluded managing quality design, quality control, maintenance, quality
improvement and quality assurance.
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3.3 Recommend any three improvements which align the objectives and/or goals of IKEA.
IKEA is a leading Swedish multinational company, it sells ready assemble equipment,
furniture, kitchen appliances and so more. Thus, it operates their products and services in
multiple countries at large scale. Due to this, employers of the firm cannot systematically
manage and control all over business activities. Therefore, there are providing some
recommendations to IKEA such as follows:
 IKEA should implement effective supply chain management system within the
organization as well as should recruit capable and knowledgeable employees so that they
can manage and control all over business in a systematic way. (Garrison, Kim and
Wakefield, 2012)
 It should be set some appropriate and effective quality standards of products with the help
of this employees can easy to identify and measure the actual quality of goods to decided
standards.
 IKEA must be use online and internet system for delivering services and products to
consumers as per their needs and requirements. At this time, it is one of the best source of
increasing profitability and productivity of business firm. (Zu, Robbins and Fredendall,
2010)
3.4 Report on the wider implications of proposed changes within IKEA company.
Every business firm focuses on to give proper satisfaction to customers so that they can
set an brand image in competition market place. Therefore, it is required to be take actual
feedback and reviews from their customers because with the help of reviews company can
update and implement appropriate changes in existing services and products of the business firm.
Therefore, it is required to be change and update required changes as per the customer's demand
and market trends. (Mundy, 2010)
Along with this, proposed changes is one of the best method for every business firm
because it aids to attract high number of customers towards business firm as well as helps to
increase sales and revenue.
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TASK 4
4.1Carry out risk assessments as required by legislation, regulation and organizational
requirements
There are included several type of risks in the business firm which directly impacts on its
working system and employees performance. Therefore, it is required to be manage and reduce
the risks from the organization with the help of appropriate methods and techniques. Apart from
this, within the company must be implement and regulate some appropriate rules and regulations
so that significantly manage all business preparations and reduce the level of issues and risks.
(Ahi and Searcy, 2013)
In the other words, by the company must be follows legal rules and regulations in a
systematic way which regulated by government of the country. Appropriate rules and regulations
aids to creates healthy working environment within the organization due to this, all employees of
the firm systematically perform their tasks.
4.2 Demonstrate how health and safety regulations and legislation applicable in specific work
situations are correctly and effectively applied to IKEA.
It is required to be provide healthy and safety services to employees so that they will
significantly perform their tasks and operations with better quality. Within the IKEA
approximately 183000 employees are working is several departments of this organization. Thus,
company must be take care of its staff members and provides safety and healthy services to
customers. So that while working at work place they can feel safe and secure. (De Waal, 2013)
For example: IKEA of work place has included different departments thus there can be
occurred accidents with their employees. Due to this, if company not provide safety and security
to them so that they feel insecure while working within organization. Hence, it is necessary to be
follow legal health and safety legislation which regulated by the government of country.
4.3 Carry out a systematic review of health and safety policies and procedures within IKEA in
order to ensure they are effective and compliant with legislation.
As per the review of company's safety and security polices which have to be followed by
IKEA within the organization so that all over employees will effectively perform their tasks with
better and effective quality. Therefore, it is required to be conduct some regular check up
campaign fro staff members. (Wolf, 2011)
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