Managing IKEA's New Product Launch in London Fashion Week

Desklib provides past papers and solved assignments for students. This project details IKEA's new product launch.

MANAGING A SUCCESSFUL BUSINESS PROJECT
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Table of Contents
Introduction................................................................................................................................3
Task 1.........................................................................................................................................4
P1 Establish project aims, objectives and timeframes...........................................................4
P2 Produce a project management plan that covers aspects of cost, scope, time, quality,
communication, risk, and resources.......................................................................................6
P3 Produce a work breakdown structure and a Gantt chart to provide timeframes and stages
for completion........................................................................................................................8
M1: Produce a comprehensive project management plan, milestone schedule and project
schedule for monitoring and completing the aims and objectives of the project.................10
Task 2.......................................................................................................................................10
P4: Carry out small-scale research by applying qualitative and quantitative research
methods appropriate for meeting project aims and objectives.............................................10
M2: Evaluate the accuracy and reliability of different research methods applied...............13
Task 3.......................................................................................................................................13
P5 Analyse research and data using appropriate tools and techniques................................13
P6: Communicate appropriate recommendations as a result of research and data analysis to
draw valid and meaningful conclusions...............................................................................21
M3. Evaluate the selection of appropriate tools and techniques for accuracy and
authenticity to support and justify recommendations..........................................................22
Task4........................................................................................................................................22
P7 Reflect on the value of undertaking the research to meet stated objectives and own
learning and performance.....................................................................................................22
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M4: Evaluate the value of the project management process and use of qualitative research
to meet stated objectives and support own learning and performance.................................23
D2: Critically evaluate and reflect on the project outcomes, the decision-making process
and changes or development of the initialprojectmanagement plan to support the
justification of recommendations and learning during the project.......................................24
Conclusion................................................................................................................................25
References................................................................................................................................26
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Introduction
After globalization, several changes have occurred in the process of managing business
operations. With an aim to improve the effectiveness of business operations managers' are
focusing on adopting new or innovative ways which improvise the market presence of the
company over the world. Due to a limited market, the demand of cheaper resources,
competitive pressure as well dynamic nature of the business environment is forcing managers
to acquire alternative measures for making successful business as well as facilitate the
entrance on global markets. The present report is based upon IKEA which designs and sells
furniture, home accessories, kitchen appliances, and other useful goals. There will define
project aims and objectives as it is essential in project management; additionally, certain
factors will also discuss which helps to produce a project. The report will also define certain
research methods that help the researcher to achieve project aims and objectives.
Furthermore, the gathered information will analyse from graphical presentations and
accordingly recommendations will make.
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Task 1
P1 Establish project aims, objectives and timeframes.
As per the given scenario, IKEA is working on a project that is based upon launching a new
product or service in London fashion week. This new product will be retailing and clothing as
it is a good option which may help the company to increase sales revenues and profitability in
global markets. This project aims is to develop and implementing a strategy that ensures
successful implementation of the plan.
Aim: - To launcha new product category in new markets for obtaining a competitive position.
Objectives:-
 To study the role of globalization in managing business operations or processes.
 To determine the necessary areas which must focus on while developing a new
product or service.
 To ascertain the impact of globalization on the competitive position of IKEA.
 Recommend the ways which help IKEA to gain competitive position across borders.
Timeframe
Activities Starting date Closing date Duration
Planning for
introducing
business to new
markets
January 1, 2019 January 2, 2019 2
Concept
development and
testing
January 3, 2019 January 4, 2019 2
Formulation of January 5, 2019 January 7, 2019 3
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marketing strategy
Business analysis January 8, 2019 January 10, 2019 3
Product
development
January 11, 2019 January 15, 2019 5
Testing marketing January 16, 2019 January 17, 2019 2
Signing off the
board
January 18, 2019 January 19, 2019 2
Launch event
preparations
January 20, 2019 January 21, 2019 2
Recommendations
and conclusion
January 22, 2019 January 26, 2019 6
Submission of the
project
January 27, 2019 January 28, 2019 2
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P2 Produce a project management plan that covers aspects of cost, scope, time, quality,
communication, risk, and resources.
While developing a project management plan, it is the foremost duty of project managers to
ensure certain necessary aspects which help in successful project execution. The process
requires effective investigation or research thus to achieve project objectives. In the present
scenario, IKEA is going to introduce a new product, i.e. clothes in London Fashion Week so
that all activities in this project needs to be well managed and ensure to provide a highly
competitive edge to business (Kerzner and Kerzner, 2017). It is also essential for managers to
cover certain necessary aspects of the business, such is stated as under –
 Cost: Since funds are limited for this project, the estimation should be done in a proper
way. Therefore, budgeting is required to be done very effectively and one thing that is
important is that the budget should be made while considering the budget. The budget is
provided here.
Activity Cost
R&D Operations $1000
Data collection and analysis $500
Procurement of Resources $2400
Project Controlling $1100
Miscellaneous $300
 Scope: The Scope of IKEA for launching the complete portfolio of space saving furniture
is well-defined, monitored, and managed. In addition to this, the information regarding
the customers will also be collected by making use of quantitative and qualitative
research methodology.
 Time:The total time expected to complete the project will be calculated based on the
completion time of each task. The timeframe plan has been provided here that tells the
time taken by each activity:-
Activity Initiation date Termination date Duration
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R&D 1 Jan 2019 10 Jan2018 10 days
Data Collection
and Analysis
11Jan 2019 15Jan 2019 5 days
Resource
Procurement
16Jan 2019 25Jan 2019 10 days
Project
Execution
26 Jan 2019 30Jan 2019 5 days
Project
Controlling
31Jan 2019 9Feb 2019 10 days
Closure of the
project
10Feb 2019 14 Feb2019 5 days
 Quality:For quality and efficiency, the principle of Total Quality Management. IKEA
will form some benchmarking standards based on the international specification. This
would help in successful project execution and better project examined.
 Communication: For the better execution and timely completion of the project, it is
important that company should develop a well-efficient communication plan and consider
proper communication medium between various stakeholders, such as customers,
employees, and management.
 Risk:The risk is unverifiable. For IKEA's new project plan, it is important to formulate a
risk management plan that will examine and analyse the risk associated with each
undertaking. Each and every risk recognized will be referenced in Risk Breakdown
Structure (RBS) and restorative designs will be created in order to diminish the impact the
risks that may be encountered in future. The risks engaged with the task are as per the
following:-
 Weak execution of the project is one of the significant risks.
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 Technical risks and change of project scope is the most common risk associated with
every project.
 Resource shortage, over-exploitation, and mismanagement may cause a delay in the
project completion
 Disputes and improper communication between stakeholders can cause some serious
problem.
P3 Produce a work breakdown structure and a Gantt chart to provide timeframes and
stages for completion.
An efficient project management plan comprises various essential and important components
and one such component is work breakdown structure. It helps in depicting the hierarchy in
the project. This helps in proper management and execution of the project in a sequential
manner. The project manager assigns the project tasks on the basis of factors, such as the
strengths and weaknesses of the individual member of the team (Devi and Reddy, 2012).
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Work Break
Down
Structure
Initiation
1 week
Generation
of Ideas
1 week
Planning
1 Weeks
Consumer
Analysis
3 Days
Marketing
Strategies
4 Days
Execution
2 weeks
Product
Launching
1 weeks
Post-
Launch
Strategy
1 week
Monitoring
&
Controlling
2 weeks
Consumer
feedback
1 week
Analysis
1 weeks
Closures
1 weeks
Documentat
ion
1 week

Figure 1: Work-Break Down Structure
Source: By Author, 2019
Gantt chart
January February
Activities Wk1 Wk2 Wk3 Wk4 Wk1 Wk2 Wk3
Idea
Generation
Target
Consumer
Marketing
Strategies
Launching
Strategies
Post Launch
Strategies
Feedback
Analysis
Documentation
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M1: Produce a comprehensive project management plan, milestone schedule and
project schedule for monitoring and completing the aims and objectives of the project.
The comprehensive plan is quintessential for the organisation for achieving the project
objectives. The organisation can make sound decisions through strategic decision-making and
planning (Brymanand Bell, 2015). The main aim of the IKEA is to launch the complete
furniture solution that will be space-saving. For that purpose, the milestone has been provided
here.
Activities W1 W2 W3 W4 W5 W6 W7
Project Designing and Planning
Resource Allocation
Product development
Complete Testing
Product Launch
Task 2
P4: Carry out small-scale research by applying qualitative and quantitative research
methods appropriate for meeting project aims and objectives.
Both the qualitative & the quantitative methods are different from each other. All the
essential quantities of things are being included in the methods of quantitative research. On
the other hand, the things which are concerned with the quality only are being included in the
method of qualitative method. The business model of IKEA utilizes the most effective &
appropriate statistical method (which is suitable for the organization) for conducting the
research. The qualitative method of research is found out to be the most effective & efficient
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method as because it describes about the “deep insights” of the business models or of the
business organization. Both the methods of research are inter-related &inter-linked. For the
effective completion of the project, the business model of IKEA conducted the small scale
research (SurveyMonkey, 2018). The quantitative method of research includes the
questionnaires, observations, interviews & effective records. The proper list of questionnaire
is being presented in front of all the potential participants & the potential customers. This is
the most frequently used method in order to collect the appropriate data & information.
Under the method of observations, a proper observation is being carried out by the business
organization, in accordance to the attitude & behaviour of the potential people. With the help
of simple observations, the quantitative data & effective information can be gathered. The
interview method includes the efficient verbal communication among all the participants &
effective researchers. The business organization can either go for the structured form of
interview or the unstructured form, according to its suitability. The records method of
research enables the company to collect the statistical & also the numerical form of data
either from the secondary sources of with the help of primary sources, that is, the records of
the business organization from the internet sources.
The qualitative aspects of the research method include the open ended questions to
effectively carry out the small scale research of the business organization. The quantity of
data or the numerical form of data is not being included in the qualitative method. The
creative graphs, pictures are being utilized by the effective organizations. Also the
appropriate behaviour & their attitude can be ascertained with the help of qualitative method
of research. “Selected Groups (the conversation is being made with the most effective group
which is selected out of the multiple groups), Case Study (the multiple sources of collecting
data in an appropriate manner) and The Grounded Theory (it includes the reason behind the
happening or occurring of the events)”, all these are being utilized in the qualitative method
(Tavakol and Sandars, 2014).
The Questionnaire Implemented by “IKEA”
1. Which is the most competitive company for “IKEA” in order to develop the category
for new product?
 Walmart
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