Detailed Report on Managing Business Activities at IKEA - Analysis

This report provides a detailed analysis of IKEA's business activities, covering key functions and processes, and evaluating their interdependencies in achieving organizational goals. It explores methodologies for process mapping, focusing on the purpose of quality gateways within the operations department. The report then delves into operational planning, proposing a Management by Objectives (MBO) approach and outlining SMART objectives for efficient resource allocation. It also examines the implementation of systems for achieving objectives, monitoring production processes, and designing quality systems to manage standards. Furthermore, the report discusses the application of Total Quality Management (TQM) to improve quality and efficiency, recommends improvements aligned with IKEA's objectives, and addresses the wider implications of proposed changes. Finally, it covers risk assessments, health and safety regulations, and the review of relevant policies and procedures, providing a practical application in the workplace.

Managing Business Activities
MANAGING BUSINESS ACTIVITIES

Managing Business Activities
Table of Contents
Task 1...............................................................................................................................................3
1.1 Describe the key functions and processes of IKEA and evaluate the dependencies and
interrelationship between the different processes and functions of the organization to meet the
mission, goals and objectives of the organization...........................................................................3
1.2 Select and justify a methodology that can be used to map any process to IKEA’s goals and
objectives.........................................................................................................................................4
1.3 Evaluate the output of the process and the purpose of a quality gateway in IKEA’s
Operations Department....................................................................................................................4
Task 2...............................................................................................................................................6
2.1 Create one Operational Plan by applying either MBO (Management by Objectives) or
Planning Hierarchy Model for your own area of responsibility......................................................6
2.2 Write three SMART objectives relevant to your operational plan to align people and other
resources in an effective and efficient way......................................................................................7
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........................................8
2.4 Carry out work activities meeting the operational plan through effective monitoring and
control of the production process at IKEA......................................................................................9
Task 3...............................................................................................................................................9
3.1 Design any two quality systems to manage and monitor quality standards within IKEA........9
3.2 Explain the ‘Total Quality Management (TQM)’ philosophy and demonstrate how the TQM
Philosophy can be used to increase quality and efficiency in creating a quality culture of
improvement in IKEA...................................................................................................................10
3.3 Recommend any three improvements, which align the objectives and/or goals of IKEA......11
3.4 Report on the wider implications of proposed changes within IKEA Company....................11
Task 4.............................................................................................................................................12
Page 1 of 17

Managing Business Activities
4.1 Carry out risk assessments as required by legislation, regulation and organizational
requirements, ensuring appropriate action is taken in the context of IKEA..................................12
4.2 Demonstrate how health and safety regulations and legislation applicable in specific work
situations are correctly and effectively applied to IKEA...............................................................13
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.................................................13
4.4 Carry out a practical application of health and safety policies and procedures in the
workplace at IKEA........................................................................................................................14
Reference list:................................................................................................................................15
Page 2 of 17

Managing Business Activities
Task 1
1.1 Describe the key functions and processes of IKEA and evaluate the
dependencies and interrelationship between the different processes and
functions of the organization to meet the mission, goals and objectives of the
organization
IKEA Company has present them in the market in such away so that they can able to put their
best things in market and drive it in a better way for the systematic organization of things. The
company runs with the consideration that they can work for the quality, proper function and
excellent performance of the products and services so that they can able to reach out to the
customers in a perfect way (Jonsson et al. 2013). The wide range of products and services that
the company delivers to the customers are the best way to deliver things with proper prices in
order to value money. Design and presentation of the store is much more perfect in IKEA and
they are creating their standard in such a way in the market so that the operation and the
marketing structure get maintained by this purpose.
The marketing purposes that the company follows for their market growth and development need
to connect with the best possibilities that serve for the better evaluation of things. The company
is focusing to the development of each department and bring symmetry so that the procedure for
selling and maintaining the management purposes get to structure in a proper way (Jakobsson,
and Fosse, 2014). From the production, purposes to the development of proper supply chain
management and then proceeding to the manufacturing progression all the things need to be
appropriate for the company. IKEA Company has strategies their plan in such a way so that it
can fulfill the necessary process for the employees and then progress for their own development.
Interrelation between the different departments and the assistance for the future progression of
different things can work positively for the target segment of the market (Park et al. 2017). The
company believes in cultural values yet presenting the design of the products with a modernism
trait. All the performance objectives work for the better way so that the organization can cater
best things to the customers and fulfill their each need. Taking care of the price consciousness
and the market flexibility, durability with additional marketing fact assist for the better
Page 3 of 17

Managing Business Activities
progression of things and the company has focused to the same thing for their internal and
external development (Wane and Santos, 2014).
1.2 Select and justify a methodology that can be used to map any process to
IKEA’s goals and objectives
In order to achieve the development state in the market, it is important that the company can able
to present them in such a way so that the customers can also associate with each thing. The
effective presentation of the company’s goal takes out the best formation for the strategically
successful state. The well-designed products and the easily available services create the best way
for the customers so that they can able to connect with the market. The wide range of products is
the positive reason that the customers get attracted to the products and the company’s services.
The company presents the price structure in such a way so that the all levels of customers can
afford them. One of the most efficient procedures that the company has incorporated to their
entire procedure is the strategic decision making procedure (Sandybayev, 2017). The internal and
external benchmarking state generates the form of affectivity that connects for the better growth
and successive phrase. IKEA company in order to present their market state to the customers and
for their own development purpose create the formative base so that it can follow up the
extensive and engaged state of marketing connection.
The goals and objective of the IKEA Company focused to the factor that they are taking the
responsibility for the effective decision making procedure that prove to be a strong aspirations
for the organization. From the operation function to the consideration of the market, efficiency
and customers preferences work for the company and their development (Fredman and Nilsson,
2015). As the market environment is constantly changing to create a symmetrical market state, it
is necessary that they work for the combination of quality and quantity growth.
1.3 Evaluate the output of the process and the purpose of a quality gateway in
IKEA’s Operations Department
Proper foundation in the quality state of the products is one significant thing that caters and
creates better formation of the organization in the market and IKEA is progressing to that
Page 4 of 17

Managing Business Activities
operation state. Management of quality and the different assessment for the further development
procedure helps to process for the products and service presentation and IKEA is generating their
own market preventability. The specification in quality requirement and the production team’s
constant work for the future progression generate the completeness in each procedure. Other than
that in the quality-gateway procedure works with traceability, coherency and testability for the
positivity of the organization. When the organization is get to focus to their development and
growth factor then they can generate the proper understandability for the measurement of their
perfect requirements and will be a consistent performance in the market. The quality
measurement analysis forms the procedure for the assurance in each thing that the customers
require and fulfill each of the expectations. The requirements leakage will not get to face by the
company after using the particular projection for the quality gateway in IKEA to the operation
department (Huemer, 2017).
Figure 1: Quality gateway process
(Source: )
The output for the IKEA Company after using the quality gateway is the processed function for
the product development. Development and growth factor for the control that is required for the
organization. After the application of quality gateway, the company can project their operation
factors and can able to meet the requirements of clients. One at a time several occasions can be
maintained and the company can generate a proper state for their positive contribution of things.
Page 5 of 17

Managing Business Activities
Task 2
2.1 Create one Operational Plan by applying either MBO (Management by
Objectives) or Planning Hierarchy Model for your own area of responsibility
In order to mobilize the organizational plan and work for better growth state the organization
generate the efficiency in such way so that the procedure become sustainable. Management by
Objectives in operational planning help to cater the best progression in things that cater the
successive procedure for the improved performance, engagement of the internal and external
stakeholders, preparation of the workforce and the management of the risk factors. The specific
performance goals and the requirements of the employees need to fulfill so that the development
phrase work for the organization in the early age (Mezzadri, 2016).
Figure 2: Operational process by MBO
(Source: )
The operational plan work as a 12 month planning state that incorporate executive leadership
teams that need to meet and identify for the better propose initiatives. For the second phrase it
will work as consolidated list of proposed initiatives for the survey process and in the third the
value initiates will get to judge and process for the next level. Operational council, service line
directors and the development of several organizational matrices will generate the entire
progression (Burman and Fernandes, 2017). The final approval structure will come from the high
management and they will work on the capital and operational budget plan for the organization.
In the final state, the organization will focus to the annual performance so that it can able to align
to the individual goals with operational plan for future long-term betterment.
Page 6 of 17

Managing Business Activities
The planning process for the hierarchical procedure cater the best possibility for the organization
so that it can able to generate strong aspect in the market can connect in a better way to the
organization. Being in the production department, it is necessary to take care about the each
mechanism and the operational planning so that the next step for the organization can be
measured. The planning cycle works like-
Figure 3: Planning style
Source: Self-made
2.2 Write three SMART objectives relevant to your operational plan to align
people and other resources in an effective and efficient way
Page 7 of 17
Business
plan
Planning cycle
Annually
Monthly
Weekly
Daily
S &OP
Master scheduling
Operational planning and production
Material and service
planning

Managing Business Activities
The different strategic phrases that adjoin with the SMART objectives of the operational
planning create the alignment for the further progression of things for IKEA. The objectives of
SMART comes with the strategic formation of specific, measurable, aligned, realistic and the
time bound procedure that help the organization in further treatment of the entire operation and
planning structure (Khilji and SCHULER, 2017). The three most important objectives of
SMART, that work for this operational planning are-
Specific planning
Specific planning process help to strategize the procedure that help to operate things in a
programmatic way and assist for the target process to the development. The specific operational
planning procedure assists for the guided state and supervises the entire procedure so that the
performance of the people gets maintained in a particular way. The likelihood for the
organization culminates the state for the product and service deliverance to the customers and the
originated operational structure also get placed.
Time bound progression
The time bound process help the organization to deliver better prospect in the working level and
all this systematic procedure connect for the employee generation and the organized factor for
the further development and growth structure. Doing several operational planning within time
can help to assist for better commitment and this emerge as the successive phrase for the
organization.
Aligned process
The operational planning need to focus to the aligned procedure so that all the target get to
fulfilled and commit for the proper resource management and operational planning procedure.
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
As the organization can take different form in order to place them with a efficient and effective
base with the market so they need to strategize their appropriate form in order to bring success
over time and place in the global market. for the achievement of organizational goal the two
efficient procedures are –
Page 8 of 17

Managing Business Activities
i) Work activities intermingled with operational plan with effective monitoring and control
The work efficiency will maintain when the organization will effectively work for the
monitoring procedure for them and apply the best strategies in market so that their budgeting and
the operational plan can maintain in a progressive way.
ii) Maintaining organizational structure with the aligned process of quality
the time schedule and the precise working state organize for the emphasis state of growth and
development and setting up the objectives in a proper way. All the achieved procedure assists for
the achievable goals and the objectives in a controllable way.
2.4 Carry out work activities meeting the operational plan through effective
monitoring and control of the production process at IKEA
Implementation of the strategic planning that associate with the monitoring phase creates the
formative basis for the entire development circumstances of the organization IKEA (Park et al.
2017). For the better practices within the organization, it is necessary that they achieve some of
the methodical procedure such as
 Regular team meetings
 Allocating several responsibilities to the workforce
 Provision of training to the staffs
 Mentoring and coaching
 Monitoring system and measuring
 Revising strategic position description
Task 3
3.1 Design any two quality systems to manage and monitor quality standards
within IKEA
The quality system delivers the strategic orientation for IKEA and they are positioning them in
such way so that it can cater the best possibilities in market and dealing with the customers in a
strategic way.
Page 9 of 17

Managing Business Activities
i) Security for the prevention by auditing system
Detect the prevention that process for the controlling error and the defect causes need to focus
for the operational and management procedure. The organization can follow the procedure where
they will focus to the objectives to find, report and record things so that they can put the
corrective action to the entire thing.
ii) Securing prevention for review system
In the review procedure with the organizational activity will generate the systematic critical
foundation of things that go for the in depth analysis of several procedures. Each department
need to go for specific inspection and cater for better activity.
3.2 Explain the ‘Total Quality Management (TQM)’ philosophy and
demonstrate how the TQM Philosophy can be used to increase quality and
efficiency in creating a quality culture of improvement in IKEA
TQM works for the betterment of the organization and quality and quality progression state with
a maximized orientation can cater the better state for the entire thing. For the achievement of
high quality and incorporation of shared commitment, high quality production, focused
management prospect, quality controlled measure, formative management technique, detection in
any processing and post production inspection deliver the best way for the entire basis so that the
organization can fulfill the goal and objectives preset. TQM helps to suggest for the improved
performance within the organization, integrated the initial operational projection, continuation of
the working purposes, increase customers’ satisfaction and the formed focused approach so that
the organization can survive long time in the market (Suman, 2016).
Working with TQM consider several things that incorporate-
 Self-improvement being in the organization
 System improvement
 Publish and create the purposes and specific objectives for the organization
 Inspection about the operation and the planning procedure
 Proper action in order to accomplish the several tasks and create the workmanship
Page 10 of 17

Managing Business Activities
 Generate climate for creative and innovative state for the entire organization
For IKEA, they can use formative and organized base for TQM and produce the strong purpose
for the operational state as well as to the marketing progression. Encouragement to the
employees can serve for the best aspect that generates better efficiency in different
organizational state. The workforce needs to understand their targets and then work for the better
progression of things and remove obstacles from each department.
3.3 Recommend any three improvements, which align the objectives and/or
goals of IKEA
For generating, the value streams for IKEA they need to work for the growth and production
factors and it create the systematic way for achievement of goal and find the better way to adjoin
more customers from the market. In order to align the objectives and goals for IKEA they need
to project for several improvements factors and they are-
 Create the value chain stream and regenerating the technological practices
 Taking care of each of the process maturity create the strategic base for the organization
 Analysis of the recent trend and assist for the programmatic state for productive growth
and better practices
Three improvements state work for the positive affirmation for IKEA, generate the production,
and convert the input in a better way. Checking the current circumstances and progressing for the
better development and growth factor with proper decision-making base can serve for value
processing and utilize the resources in a proper way. Technology based services cater the strong
progressive state for the dramatic improvement for the organization.
3.4 Report on the wider implications of proposed changes within IKEA
Company
The well-designed products with a wide state for the services to the customers generate a proper
market for IKEA that suggest for the further development and success. Some of the proposed
Page 11 of 17