Analyzing IKEA: Business Strategy, Leadership, SWOT, PESTLE & CSR

This report provides a comprehensive analysis of IKEA's business context, utilizing SWOT and PESTLE frameworks to assess internal and external factors influencing the company's strategies. It evaluates changes in the PESTLE environment and their impact on IKEA's opportunities and threats, while also examining how the company leverages its strengths to mitigate threats and address weaknesses. The report further explores the leadership styles suitable for meeting IKEA's business objectives, focusing on the importance of a visionary approach. Additionally, it details IKEA's CSR processes, highlighting the company's commitment to cost-effective, eco-friendly materials and sustainable practices to enhance its competitive advantage and societal impact. The analysis concludes that IKEA's strategic focus on innovation, sustainability, and strong customer goodwill is crucial for maintaining its position in the global retail market.

Context of business – Ikea

TABLE OF CONTENT
INTRODUCTION....................................................................................................................3
Swot and Pestle analysis.........................................................................................................3
Evaluation of changes in Pestle and influence on opportunities and threats, addressing
strengths to negate threats and weaknesses affecting their opportunities..............................5
Leadership style for meeting business objectives and focus on business environment.........6
CSR process of IKEA.............................................................................................................7
CONCLUSION.........................................................................................................................8
REFRENCES............................................................................................................................9

INTRODUCTION
Business context can be analysed as highly essential, within recent time as companies
are adopting to new innovative productive services within services. IKEA is one of the best
brand in global retail market, having best quality retail products and services all over globe
with best customer goodwill and stronger revenue parameters. The recent report will anaylse
internal and external factors, Ikea business strategies for adopting to opportunities and
threats , for further addressing strengths to develop response to threats and weaknesses. Also
study will anlyse leadership style, and business objectives of IKEA for developing
informative new decisions and CSR porocedures for strengthening competitive growth.
Swot and Pestle analysis
IKEA internal factors analysis, can be analysed as one of the major aspects where
competent functional information can be analysed about company business goals. The SWOT
factors, further correlate towards advancing new expertise within internal vision for gaining
untapped new market reach rapidly. Company internally and externally faces various
complications, which have to be connected on for gaining practical functional enhancement
and integrated diversity.
 Strengths: The brand has strong customer goodwill as innovations among retail
products and sercvices is strong , for driving costs down and making best market
positioning within market. Brand reputation is strong, as diversified product portfolio
is strong and technically diversified making huge functionl growth. Ikea has also been
developing best working platforms, for determining untapped goals and framing
extensive diversified benchmarks (Randerson, 2022).

 Weaknesses: The company faces excessive competition, as new brands and
compnaies with new diversified channels are coming up having huge potential
customer market reach functionally. There is also stiff external economies presssre,
hampering company business goals and yielding on towards new market domains.
 Opportunities: IKEA has opportunities for further expansion and developing stronger
presence into global economies, and setting online strong expansion into grocery and
retail market rapildy. There has been strignent rise in new opportunities, where
business goals are competitively expanded for strengthening market presence.
 Threats: Increasing consumers products demand, has also impacted compnay
revenue and capital structure goals further developing fundamental threar for Ikea.
There has to be further new investments done towrads determining new product
portfolio strongly, and developing competent vision productively on new grounds.
Pestle analysis, has been found to be one of the most essetnial model determined to analyse
external business factors.
 Political factors: Ikea has strong political stability, and aims to bring global market
presence whcih has enabled company to diversify brand stores into various places. It
has significantly enhanced brand reach within global market dynamically. Politcal
factors such as strignent market stability further develops optimum grounds for new
investments into international frameworks.
 Economical factors: Ikea has strong economical parameters, where chnaging external
market factors further has dierselly bringing changing in company functional
positioning. Economic factors and strategies have opened up platforms, where
company aims to bring on new changes innovatively (Welch and et.al,., 2022). Social factors: Ikea with changing extrenal social factors and rapid consumers
choices has been functionally evolving into building best retail productive services.
IKEA has to further expand new investments, for bringing new channels of products
and services and leverage determined growth into working expertise. Technological factors: Ikea uses best technologies for strengthening supply chain and
business expansion, whcih has developed strong brand goodwill fundamentally. The
technology fatcors, further signifies best development for integrated competent
functional innovation rapidly. Ikea also further optimises new technolgies, which
signifies best usage of supply chain networks for improvising rapid connective
funtional growth accurately.

 Legal factors: The company exterally heads on strong compliance factors for legal
business reach functionally, where this has enabled brand to develop strong industry
positioning. Legal factors such as employees welfare, employement, contract and
securities specifically further enhances working efficayc towards competent
functional vision diversley. Environmental factors: CSR factors, and environmental sustainability has been found
to be some of the major factors where Ikea develops strong reach for bringing chnage
into society. Environmental factors further advances brand reahc to be competently
advanced for gaining higher goodwill competitively. Sustainbility plays pivotal role
in company long term goals, for connecting towards untapped new market fatcors and
enhancing environmental reach rapidly.
Extrenal factors, of Ikea are diversely integrated to further strengthen up new bsusiness
parameters fundamentally within varied domains. Also, pestle has significantly developed
rise on connecting towards new untapped fucntional goals for correlating on extensive
working scenarios.
Evaluation of changes in Pestle and influence on opportunities and threats, addressing
strengths to negate threats and weaknesses affecting their opportunities
Changes in Pestle has influenced opportunities and threats of business variedly within
IKEA, as it has been found to be integrally crucial for gaining new diverse opportunities
competently. The external changes such as external economic changes, and developed new
technology evolving has led to increase in new opportunities and threats for IKEA. Externally
company has huge pace to develop new extended market paradigms, based on larger vision
oriented goals for consistent working pace. Evaluation of changes in Pestle also signifies that
new opportunities and threats can be evaluated by bringing on practical diversified goals,
which develops untapped new productive changes to be worked on actively. This signifies
that pestle also affects new opportunities for company to regain new market domains, and
vitally evolve on keen paradigms actively (Zapata-Cantu and et.al, 2022).
With changing external economic parameters, Ikea faces extensive change towards
taking up new international positioning worked on for expanding into fundamental diverse
market place. Changes in opportunities and threats, also signifies that development towards
bringing new technology investments has been rising fundamentally within recent time where
Ikea faces fundamental competition from new companies coming up in retail industry. Pestle

also signifies that influence on opportunities and threats brings rise for company to develop
new untapped technologies for further investment priorities actively. There is opportunity for
expansion into digital platforms, and enhance practical functional wellbeing rapidly to
critically engage on new fundamental diversity domains. Political market stability also
signifies best competitive market abilities to be evolved on, for gaining untapped new
international business framework reached.
Addressing strengths, IKEA has strong customer goodwill and aims to constantly use
innovation for driving costs down and work on new supply chain integration aspects for
primitive fundamental diversity. It can be also analysed that brand reputation of IKEA is one
of the biggest strength, and has generated strong industry presence with diversified product
portfolio rapidly. Strengths to negate threats and weaknesses affecting their opportunities
signifies that Ikea aims to utilise strength of best brand goodwill, to leverage rise on new
market opportunities. The company market prsence has to be also expanded internatonally
into untapped market place , where IKEA has huge scope for extending towrads new
technical diversity paradigms. Also, strengths of huge capital has to be leveraged into
integration for improvising new goals where weaknesses such as extensive competition can
be worked on productively. It can be also analysed that company has been dynamically
evolving to bring forward new fundamental corporate growth parameters , where business
has been structurally evolving to bring on new investment priorites. Also Ikea strength such
as strong customer goodwill can be diversified, by developing new customer oriented digital
services for gaining stronger market positioning (Solakis, Peña-Vinces and Lopez-Bonilla,
2022).
Leadership style for meeting business objectives and focus on business environment
The Daniel Goleman leadership styles can be analysed as one of the most effective
leadership model, focusing on new business environment scenarios fundamentally. The
Daniel Goleman leadership style signifies combination of 6 types, which are coercive
leadership, authoritative. Affiliative, democratic, visionary and coaching styles which are
some of the major styles within business environment informatively rising. Ikea being one of
the best retail brand, within global business where this determines best stringent rise to be
developed on towards new extended parameters.
Adopting visionary leadership, has been found to be one of the best leadership style for IKEA
where it further opens up new scope for company to deliver strategic motivation and growth

goals rapidly. Visionary leadership, further signifies that leaders has to be dynamic and vision
oriented for bringing strategic change fundamentally among company. Ikea also by adopting
visionary leadership, will be able to bring practical diversity for motivating change among
employees and to leverage new strengthened productivity goals dynamically. Visionary
leadership for meeting business objectives evolved on business environment, will develop
new commercial goals for company to revive on longer extended parameters (Biagi, Patriarca
and Di Gravio, 2022).
. It can be also signified that taking up visionary leadership has been found to be
competently essential, based on practical company long term determinants for strengthening
competitive engagement. The Visionary leadership, further correlates focus on extensive new
parameters based on larger change delivery for taking up new informative decisions into
corporate functional goals actively. By taking up visionary leadership, Ikea leaders will be
able to synchronise new strategic changes into actions for gaining functional rise
competitively into business goals for gaining practical expansion.
Visionary leaders mobilize teams towards long term vision, for structuring company
services as per aim to deliver change consistently and deliver primitive goals towards
connecting extended pathways. Ikea by inculcating visionary leadership, will be able to
determine change profoundly and gain expertise consistently to develop long term goals
profoundly. The visionary leaders, are integrated to bring on extended parameters for gaining
functional growth proactively for strengthening untapped competitive abilities.
CSR process of IKEA
The CSR procedures of IKEA are strengthening focus on emphasizing towards cost
effective, eco-friendly materials usage and procedures for gaining practical competitive reach
proactively. In furnishings, 98% of woods used in products of IKEA are derived from FSC-
certified sources and recycled materials for improvising new CSR factors towards delivering
competitive growth functionally. It can be also analysed that sustainability procedures have
been found to be competitively grown, where Ikea develops stringent innovation for bringing
change optimistically. CSR factors and developing sustainability, develops optimum
functional vision to be operatively enhanced on for extended diverse benchmarks rapidly
(Hina and et.al, 2022).

Till 2030, company is committed to utilise new renewable and recycled materials, for
reducing total climate footprint functionally by average of 70% per product. IKEA being one
of the best brand in retail industry globally aims to enhance new CSR factors, and strategies
for developing competent new extended determinants which also correlates new paradigms to
be worked on. The CSR efforts which further contributes to deliver change enhances
sustainability for company to bring change in society, and reconnect towards new productive
vision in society. There is also further correlation towards developing innovation, responsible
community engagement and towards connecting change on new paradigms for extended
improvement actively. Ikea also aims to revive new vision for sustainability adoption, and
forms stringent rise on changing new parameters for reviving competitive growth. The
company leaders are also evolving to bring on new changes, where business goals have to be
reorganised for improvising untapped new parameters. This further develops keen significant
brand reach to harness untapped business goals, which determines competent pathways for
gaining competitive benchmarks abilities. Commercially CSR further develops significant
brand reach, for functionally enhancing untapped new market reach and enhancing new
market stability for improvised determined pace innovatively.
Ikea as one of the best organisation, further develops best investments for
strengthening CSR business goals and developing new targets based on long term parameters
for strengthening functional growth. Also, Ikea aims to use sustainable business goals for
technically enhancing rapid connectivity and generating extensive diversity for untapped
functional growth actively. CSR contributions are expanding rapidly in IKEA, where
culturally company aims to connect towards new market domains and enhances new market
pace for gaining extended growth goals shaped on practically (Rojas, Watkins-Fassler,and
Rodríguez-Ariza, 2022).
CONCLUSION
The research in recent report has concluded Ikea Internal and external business
environment factors, where new business goals are further developing determined targets for
higher competitive growth. Ikea significantly is working to build new international market
place, by improvising new platforms and developing primitive investments on extended new

domains for technical innovation. Also, study summarized that CSR goals are constantly in
shape for bringing change into society sustainability where IKEA business goals are actively
shaping positively.
REFRENCES
Books and Journals

Hina, M., and et.al, 2022. Drivers and barriers of circular economy business models: Where
we are now, and where we are heading. Journal of Cleaner Production, 333,
p.130049. Woroch, R. and Strobel, G., 2022. Show me the Money: How to
monetize data in data-driven business models?.
Randerson, K., 2022. Conceptualizing family business social responsibility. Technological
Forecasting and Social Change, 174, p.121225.
Rojas, M., Watkins-Fassler, K. and Rodríguez-Ariza, L., 2022. The Life Satisfaction of
Owner-Manager Entrepreneurs When the Business of Business is not only
Business. Applied Research in Quality of Life, pp.1-25.
Welch, C., and et.al,., 2022. Reconciling theory and context: How the case study can set a
new agenda for international business research. Journal of International
Business Studies, pp.1-23.
Zapata-Cantu, L., and et.al,., 2022. Family Business Adapting a New Digital-Based
Economy: Opportunities and Challenges for Future Research. Journal of the
Knowledge Economy, pp.1-18.
Biagi, V., Patriarca, R. and Di Gravio, G., 2022. Business Intelligence for IT Governance of a
Technology Company. Data, 7(1), p.2.
Solakis, K., Peña-Vinces, J. and Lopez-Bonilla, J.M., 2022. Value co-creation and perceived
value: A customer perspective in the hospitality context. European Research
on Management and Business Economics, 28(1), p.100175.