Operational Resource Allocation and Strategic Risk Analysis at IKEA

This report provides a comprehensive analysis of IKEA's operational management, focusing on resource allocation and strategic risk assessment. It begins with an introduction to operational management and its importance, followed by a detailed examination of a resource allocation plan designed to meet specific operational requirements. The report then assesses and applies appropriate strategies to support this plan, evaluates the advantages and disadvantages of different resource management strategies in terms of workflow and outputs, and devises and carries out a Strategic Risk Analysis (SRA) for the organization, including risk identification and mapping. Furthermore, it develops contingency plans to minimize identified risks and provides justifications for recommended strategies at operational, tactical, and strategic levels, concluding with a summary of key findings and recommendations, and references.

unit 25 part 2

Table of Contents
INTRODUCTION................................................................................................................................4
PART -2 ...............................................................................................................................................4
P7 Prepare a resource allocation plan to meet specific operational requirements for an
organisation. ....................................................................................................................................4
M3 Assess and apply the most appropriate strategies in support of the resource allocation plan...6
D2 Examine the advantages and disadvantages of different resource management strategies in
terms of improving work flow and outputs.....................................................................................6
P8 Devise and carry out an SRA of an organisation using risk identification and mapping...........7
M4 Develop contingency plans and strategies to minimise the risks highlighted in the SRA........9
D3 Provide valid justifications for recommended strategies at an operational, tactical and
strategic level.................................................................................................................................10
CONCLUSION..................................................................................................................................12
REFERENCES...................................................................................................................................13
Books & Journal:...........................................................................................................................13

INTRODUCTION
Operation management is determined as the administration related to practices of business
organisation that helps in generating high level of efficiency (Bharadwaj, 2017). Operation
management focuses on converting raw material into finished good for implementing different
services in an appropriate manner. In this report, the IKEA is determined as a multinational
organisation that provides different kind of furniture, kitchen appliances as well as home furniture
to its user in order to satisfy them. Herein, the organisation focuses on description related to
allocating proper resources for operational management and analysis the strategic risk for
operational function of business organisation in an appropriate manner. And, also prepare a resource
allocation plan that helps in achieving goal as well as objective in timely manner.
PART -2
P7 Prepare a resource allocation plan to meet specific operational requirements for an organisation.
Resource allocation is determined as a plan that helps in improving or using resources for
accomplishing goals as well as objective during particular phase of time period. Therefore it is
necessary to allocate resources in order to conduct different task in an appropriate manner. There
are different tips given to manager for resource allocation plan that help in achieving operational
need of business organisation. In context of IKEA, there are different tips for resource allocation
that is going to be mentioned below:
Know scope it is necessary to allocate resource or handle them in an appropriate manner
that help in taking appropriate decisions during particular phase of time period. It is necessary to
allocate resources to accomplishing project in timely manner (Constantinou, 2020).
Identify resources it is necessary to identify a given resources for accomplishing goal as
well as objective in timely manner. It is important to perform their work in an appropriate manner
and maintain in budget during particular phase of time period. The management of chosen company
focuses on allocate as well as identifies resources for implementing different tasks and activities in
an appropriate manner.
No resource dependence it is necessary to allocate resources in order to provide different
various activities and tasks related to business organisation in an appropriate manner. In addition to
this, it is necessary to identify the resource dependency for analysing the need and want of its
customers during particular phase of time period. Apart from this, it is necessary to handle resources
in more productive manner. It is necessary to reduce risk and increase profitability level in future
period of time. There are different kinds of resources that must be managed by employee of
Organisation in order to make process easier.

There are different kinds of resources that must be allocated into different tasks in order to
achieve goals as well as objective in timely manner. In context of IKEA It is helpful in achieving a
favourable outcome in future period of time. There are mainly five kinds of resources which are
helpful in completing the work in an appropriate manner that is going to be mentioned below:
Labour HR is plays an important role within business organisation. It is necessary to
provide positive atmosphere in order to decrease conflict among team members during particular
phase of time period. In addition to this, the main focus is to satisfy need and want of its user for
performing different task in an appropriate manner.
Equipment there is different equipment that is adopted to produce product. Therefore, it is
necessary to allocate the task to its worker in order to increase productivity level in future period of
time (Kumar, 2018).
Material there is different kind of material which is used to produce final goods that must
be allocated to its user during particular phase of time period. The main focus is to provide superior
quality product and services to its user in order to satisfy them.
Facilitates building as well as work areas determine as an important cost of project.
Therefore, they focuses on providing facility to its employees and make appropriate budget that
help in performing different work for allocating resources in an appropriate way.
Miscellaneous there are different project that need different kind of resources that imposes
direct effect on budget as well as schedule. It involve administration performance, bonding risk
premium as well as many more which is important for performing different work in an appropriate
manner. Therefore, it is necessary to allocate the resources in different parts for accomplishing it in
proper way (Lamprianidis, 2020).
In order to allocate resources, there are different steps which must be followed by IKEA
that is going to be mentioned below:
Under the project scope the first step is setting resource plan of project that help in
understanding or satisfying need as well as requirement of project during particular phase of time
period. Herein, management focus is on analysing skill and knowledge of individual person that
help in making appropriate plan during particular phase of time period.
Resource availability it is necessary to assess available resources in order to allocate in an
appropriate manner. Therefore, it is necessary for the manager to allocate the resources in and most
appropriate manner during particular phase of time period.
Time tracking and resource utilisation it is necessary to track the project and that help in
make project that must be profitable in future period of time. Therefore, there are various steps
which is utilised by management team in order to allocate resources during particular phase of time
period. It is also helpful in increasing profitability and productivity in future period of time.

Resource Requirements Tasks Start date End date
Financial
resources
Execution of
business plan and
activities
Main task of
these resources
is to push
planning and
other business
activities for
further achieving
of objectives.
21.12.20 28.12.20
Skilled
employees
To complete
work and
enhance
productivity
Main task of this
resource is to
deliver positive
results to
business.
23.12.20 27.12.20
SCM software Reduction in
inventory costs
Main task will
be to analyse all
planning and
procedures.
27.12.20 27.12.20
Resource allocation plan
Importance of resource allocation plan
Resource allocation plan is important for enterprise which is needed to be adopted with
proper consideration so that decision making is being done in most effective manner. Main benefits
of this plan are that it helps in allocation of resources at right places. In relevance of selected
organisation by properly following this plan makes them easier about areas where resources are
needed at priority level.
M3 Assess and apply the most appropriate strategies in support of the resource allocation plan
There are different strategies given to manager for resource allocation plan that help in
achieving operational need of business organisation. In context of IKEA, there are different
strategies for resource allocation that is going to be mentioned below:
Identify resources is determined as most appropriate tactics that is necessary to identify a
given resources for accomplishing goal as well as objective in timely manner. It is important to
perform their work in an appropriate manner and maintain in budget during particular phase of time
period. The management of chosen company focuses on allocate as well as identifies resources for
implementing different tasks and activities in an appropriate manner (Li, 2018).
On the basis of above mentioned strategy, it has been analysed that identify resource is
superior strategy for success and growth of business organisation during particular phase of time
period. Therefore, there are various steps which is utilised by management team in order to allocate
resources during particular phase of time period. It is also helpful in increasing profitability and
productivity in future period of time.

D2 Examine the advantages and disadvantages of different resource management strategies in terms
of improving work flow and outputs.
There are various advantages and disadvantages of resource administration strategy that help
in increasing workflow as well as output in future period of time. In context of IKEA, there are
different advantage and disadvantage related to resource management strategy that is going to be
mentioned below:
Advantages of resource management strategy
Profitability management herein, the organisation focuses on manage the profit in order to
achieve favourable outcome in future period of time. It is also helpful in increasing sales in future
period of time (Moribe, 2017).
Competitive advantage the chosen company focuses on providing unique product and
services to its customers that help in achieving competitive advantage over rivalries at Marketplace.
The resource management is determined as a appropriate handing resources that help in increasing
productivity level in future period of time.
In addition to this there are various disadvantages of resource administration strategy but
there is some disadvantage that is going to be mentioned below:
Multilevel dependency the main disadvantage is that the success is executed at large
amount, the operation management not make proper coordination among various components of
companies therefore it is determined as main disadvantages of organisation.
Human error the other problem along with this is the human error that is determined as a
main weakness of organisation it is significant to make sure that it is necessary to co-ordinate
different area like operation, marketing, engineering, Human Resource in order to organise different
activity in proper way. Therefore, if the different department does not makes appropriate
coordination in an appropriate manner that helps in decrease productivity level of organisation.
Apart from this, it is necessary to handle resources in more productive manner. It is necessary to
reduce risk and increase profitability level in future period of time. There are different kinds of
resources that must be managed by employee of Organisation in order to make process easier.
P8 Devise and carry out an SRA of an organisation using risk identification and mapping
In business sector, it is essential to focus on risk and challenges that occur in business so
that decision making is carried out in proper manner. In relevance of IKEA, it is crucial for
enterprises to identify risk that can occur in business of which goals & objectives are achieved in
specific manner (Rebelo, 2017). Manager and leader of firm are responsible for identification of
risks that can impact on organisational functions as well as operations. Strategy risk analysis is top
be defined as process of accessing to risk that are encountered within enterprises. In this flexible

market, it is necessary to be aware about these risks so that it is easy to make use resources within
process and procedure. SRA is beneficial for organisation as it helps entity to map a path towards
benefit & profits which also leads to increase of productivity at higher scale. This SRA comprises of
several stages which are described as follows-
 Achieving deep understanding of strategy of firm- The first approach of this SRA in
which it is essential to understand and properly examine the strategy of firm that are adopted
by them within their business. In relevance of IKEA, they have well developed strategy
plan as well as objectives. Without considering of this step, it is not possible to identify the
risks in proper manner. Understanding strategy of firm leads to gaining of reliable
information of business operations and functions. Thus, it is necessary to examine this
strategy so that solutions are proposed properly (Rinawiyanti, 2019).
 Gather views on data on strategy risks- It is second step in which it is crucial to analyse
data and views on enterprise strategic risks. In this step, it is done through surveys,
questionnaire, interviews etc. With help of data gathering, it is easy to make decisions about
strategy risk & how they can solved. In context of chosen firm, they use surveys as well as
interviews to gather data on strategy risks that impact their functions. Data collection is time
consuming process because it leads to analysing of risk in efficient way.
 Prepare preliminary strategy risk profile- It is another aspect of SRA in which strategy
risks profile is being prepared. It is crucial to prepare profile for organisation of strategy
risk so that proper decision making process is carried out. For example in reference of
chosen firm, they have created a profile in which they list their top priority risks such as
change market situations, consumer behaviour and attitude etc. It is essential to focus on
these lists so that solutions to them are proposed accordingly.
 Validate & finalize the strategy risk profile- In this aspect of SRA, strategy brisk profile
which has been created is needed to be finalized as well as validated so that it is used in
proper manner by organisation. It is also seen that finalising this risk profile leads to
effective results. In context of selected entity, it is analysed that with help of this profile they
are able to devise a valid solution for risk which has been identified. So, with help of
validating risk & profile entity is able to carry out further stage with proper considerations.
 Develop strategy risk management action plan- This is also important aspect in which it
is analysed that pan for strategy risk management is developed which assist in producing
and solving risk in appropriate manner. Moreover, in viewpoint of IKEA, it is examined
that developing of this strategy risk plan helps manger of IKEA in improving their
operations & functions of business. It is too analysed that developing strategy risk

management action plan need deep analysis of market as well as internal firm on basis of
which it is easy to deliver better solution (Vergassola, 2019).
 Communicate SRP & SRM plan- In this stage, it depicts that it is necessary to says that
communication is also important in strategy risk management as well as planning as it help
in developing appropriate results. In context of selected entity, it analysed that this risk
assessment is on-going process which is needed to be carried out in correct manner. With
help of both SRM & SRM plan, it is easy for chosen firm to implement appropriate
strategies for business.
Importance of SRA
It is important to business as because it help in analysing the the potential as well as non-
potential risk which can impact upon overall organisation structure. Moreover by using of this SRA
tool makes it easier for IKEA to carry out their forecasting and future business plan with proper
consideration. According to this tool various types of risks are present in operation s and functions
of IKEA that are described as follows-
Risks
 Loss of customers
 COVID 19
 Politics
Risk assessment map
Types of risks
Difficult risks- This risk are defined as those which occur rarely but have impact upon
organisational function at larger scale. For example- in context of IKEA, changing technological

factors & which also leads to risk can negatively impact on their business environment.
Critical risks- These are defined as that type of risk which occur at significant level and
have deep impact because of their probability of occurrence. For example social factors are to be
considered as critical risk that can negatively impact of on enterprise organisational functions.
Minor risks- This type of risk do not have larger impact and are not taken as priority. For
example- environmental risks are taken as minor risk by businesses.
Routine risks- Routine risks are those which occur within business with continuous level
and have low effect on organisation function. For example in context of IKEA, economic risks and
factors impact upon company at frequency level.
Therefore, from above discussed matter it is seen that it Is crucial for entity to use this tool
of SRA on basis of which it is easy for them to examine risk related to their level of operations.
Moreover, it is to be executed in systematic process so that objectives are achieved accordingly.
M4 Develop contingency plans and strategies to minimise the risks highlighted in the SRA.
Contingency plan is defined as process in which panning is done according to getting
back to day to day operations of business after encountering of unfamiliar events in business.
It is an essential plan which is being adopted at all aspects so that SRA is done in correct
manner. Also, it is beneficial for enterprise to make decisions (Wang, 2020). In relevance of
selected organisation, they too use this contingency plan which is further described below-
Event or
risks
Measures to
be carried
out
Priority Responsibili
ty
Consequenc
es
Areas
allotted
Pandemic Providing of
safety
measures &
online
delivery
1 Marketing ,
manager
As due to
providing
safety
measures
cost
production
increases.
Whole
organisation

Technology
shift
High
2 It
department
Change of
technology
leads to
increase of
cost
production
and use of
resources.
IT sales
Politics risks High 3 Team leader Due to
political
risks, it
negatively
affects the
behaviour of
employees
Whole
enterprise
Strategy Risk Analysis
Thus, it has been specified that it is essential to carry out this SRA so that decision making
process is done in most effective way. Furthermore, it is also seen that correct strategies are needed
to be adopted so that time is saved in future period. Through considering of this plan, leads to
accessing to solutions of risk identified by IKEA (Wang, 2020). So, when developing plan proper
knowledge & information is needed to be used so that it is easier to proposed effective solution for
business risks.
D3 Provide valid justifications for recommended strategies at an operational, tactical and strategic
level.
As mentioned above strategies has been described in proper manner. It is crucial for
organisation to make assure that tactics which has been adopted are used in efficient manner so that
risk are minimised at wider scale. Further, manager need to assure that strategies are being revised

properly so that they are adopted & final output is achieved in appropriately. Also, reason for
discussed strategies are given as follows-
 Adopting of strategies assist them in improving of operations and functions of business in
proper manner. Moreover, though these organisations is able to access to forecasting of
future risk sand problems.
 Another reason for choosing of this strategy is that with they help in developing effective
decision making (Zheng, 2017).
 Moreover, focusing on this strategy leads to better results in operations & functions.
Thus, from above discussed matter it is analysed it is important for them to adopt these
strategies on basis of which it is easy to be aware about uncertain situations in most appropriate
manner.

CONCLUSION
After a brief analysis of above report, it has been examined that it is essential to be aware
about operation and function of firm so that goals are accomplished appropriately. So, discussions
have been made about resource allocation plan & SRA which is also known as strategy risk
analysis. This has been evaluated that it is necessary to implement plan so that future objectives are
achieved in correct way. It is duty of manager & HR to scan business environment on both internal
as well as external manner so that risks or challenges that can reduce productivity of business are
identified. Furthermore, it is too examined that it is time consuming process to do planning &
identified risk so effective decisions are to be made during process. Moreover, contingency plan
and resource allocation plan is described briefly.