Business Report on IKEA: Internal and External Factors Analysis

This report provides an analysis of IKEA, focusing on the internal and external factors that shape the company's strategic planning and overall business operations. The report delves into the various elements impacting the company, including employees, managers, financial resources, and company culture as internal factors. External factors such as competition, government policies, and customer and supplier relationships are also examined for their impact on IKEA. Furthermore, the report highlights the roles of finance, human resources, and marketing within the organization, as well as the significance of financial management. The report concludes by summarizing the key findings and emphasizes the importance of understanding both internal and external factors for business success. References to academic sources support the analysis.

Introduction to business studies

Introduction
 This report including that scenario by which various kinds of facilities is
given. It determines strategic planning and vision of business organisation.
It also offers description in respect of internal as well as external factor that
enforces direct influence on functions and activity of company. It provides
the description or explanation in respect of role of finance, HR and
marketing of organisation. In assistance of this, there is also an explanation
in respect of role of management of finance within organisation. The
present report is carried upon company named as IKEA. It is international
groups of Swedish organisation located in Delft, Netherlands that helps n
providing different kinds of products such as home accessories, kitchen
appliances to its user (Canning and Szmigin, 2016).

Internal and external factors which impact on business
 There are various kind of elements that enforce direct influence
on functions and activities of organisation. It includes various
types of elements or factor which is going to be mentioned
below:
 Internal factors – Employees and managers
Money and Resources
Company culture
 External factors - Competition from other businesses
Politics and government policy
Customers and suppliers

Internal factors
 Employees and managers employees are considered as an important part
related to internal environment of company. It is significant for staff
member execute their work in superior manner. The management team
emphasize on handling different type of subordinate in order to achieve
objective in timely manner (Zahra, 2016).
 Money and resources due to lack of finance, the company is not able to
gain profit which will be helpful in future period of time. It is important to
have enough finance in order to perform various functions and activity of
organisation in proper way. Thus, it is important to have necessary fund
that assists in advertisement of products and services and having a proper
quality of good during particular phase of time period.

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 Company culture includes priorities, values and attitudes that help in
executing different type of work in an appropriate manner. It is
important to manage positive culture which is helpful in managing
efficiency level and organising work related to subordinate in proper
way. The employees of company have superior values and it is
important to recruit, hire promote its subordinate according to the
requirement of company.

External Factors
 Competition from other organisation it is important for company to
be precise if they required or need to survive or maintenance in
competitive world. And company focuses on having more experience
regarding organisation during particular phase of time period.
 Politics and government policy the changes in the policy of
government enforce direct influence on organisation. The superior
example of this type of companies is tobacco industry. The cigarette is
offered to its customer by adopting warning on its packet. There are
various places where individual person can smoke in legal manner.

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 Customer and supplier it is important element while conducting
different functions within business organisation in proper way.
Therefore, it is very important in order to deal with different function
within business organisation. The user of company is significant to
convince by its facility that is provided to its customers (Inman, 2016).

Conclusion
 From given assignment, it is assessing that this report including that
scenario by which various kinds of facilities is given. It determines
strategic planning and vision of business organisation. It also offers
description in respect of internal as well as external factor that enforces
direct influence on functions and activity of company. It provides the
description or explanation in respect of role of finance, HR and
marketing of organisation. In assistance of this, there is also an
explanation in respect of role of management of finance within
organisation.

REFERENCES
 Canning, L. and Szmigin, I., 2016. Radical innovation, network
competence and the business of body disposal. Journal of Business &
Industrial Marketing.
 Inman, K., 2016. Women's resources in business start-up: A study of black
and white women entrepreneurs. Routledge.
 Matt, D.T., Rauch, E. and Riedl, M., 2018. Knowledge transfer and
introduction of industry 4.0 in SMEs: A five-step methodology to introduce
industry 4.0. In Analyzing the impacts of Industry 4.0 in modern business
environments (pp. 256-282). IGI Global.
 Taylor, P.H. and Richards, C.M., 2018. An introduction to curriculum
studies. Routledge.
 Zahra, S.A., 2016. Developing theory-grounded family business research:
Some suggestions. Journal of Family Business Strategy, 7(1), pp.3-7.

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