Business Project: Managing Successful Business Project - IKEA Report

This report examines the impact of digital technology on business activities, using IKEA as a case study. It begins with an introduction discussing the role of technology in business and the importance of digitalization. The report then focuses on the aims and objectives of the project, highlighting the significance of digital technology in transforming business operations, marketing, HR, and accounting. It presents the background of the research, emphasizing the need for businesses to adopt digital technologies for improved efficiency. The report includes a project management plan that encompasses scope, cost, and time considerations. Detailed sections cover the incorporation of a project management plan, including scope, cost, time, and quality elements. The report also outlines the project's objectives, such as determining the impact of digitalization on IKEA's activities, identifying advantages and limitations, evaluating challenges, and recommending improvements. The report provides a comprehensive overview of the project management process and the benefits of digital transformation for businesses.

MANAGING SUCCESSFUL
BUSINESS PROJECT

Table of Contents
PART 1............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Clear aims and objectives..................................................................................................1
P2 Incorporating project management plan............................................................................4
P3 Work breakdown structure and a Gantt chart to provide time frames and stages.............6
................................................................................................................................................9
................................................................................................................................................9
................................................................................................................................................9
M1 Comprehensive project management plan with clearly planned milestones and a schedule
................................................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
.......................................................................................................................................................12

PART 1
INTRODUCTION
Each business organisation takes various projects at different time. Technology plays
necessary role in increasing productivity as well as performance of business more effective. In
this, technology shown its performance level over year for development of civilization. It
develops negative as well as positive results on business (Achtenhagen, Melin and Naldi, 2013).
In this modern era, use of digitalization in implementing the business activities in successful
manner is very common practice to provide continuous services with new services, innovation,
products etc. IKEA is a multinational group and it designs as well as sells its furniture,
accessories and also kitchen appliances to people. Under this given report mentions about
objectives and aims of project. Firm develops project management plan for incorporating the
quality, cost, time, resources, communication, scope and risk will also be discussed in mention
report.
TASK 1
P1 Clear aims and objectives
Digital technology develops more affect on development of business and helpful in
transforming business activities from analogue to the digitalisation. In this time period, digital
technology is necessary part. Many digital resources like for an instance social media, electronic
communication, websites, mobile applications in order to make improvement in activities and
also operations of the business segments. In addition to this, an internet related communication
technologies concerned to the communities involving suppliers, financial services and industry.
The cloud technology able a business organisation to keep backup, store and also update
information in facilities of provider. In this present time period, the mobile technology set the
new model of business with communication applications as well devices. Generally, planning
begins project and then manage all the set activities in a systematic manner (Barringer, 2012). It
is sum of activities which help in accomplishing aims and objectives of an organisation in
significant manner. IKEA is a large size organisation and it uses new technology for making its
production process better as well as effective. It also sells its products through online to
consumers from this they can purchase goods in an easier manner. In addition to this, it is
necessary to update the advanced technology with in specific period of time. The social media is
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strong digital technology in this present time. There are large number of people which connected
with social media so it is easy to an organisation to interact with them in an easier manner. New
development aids in transform business activities in an effective manner (Crawford and
Nahmias, 2015). In United Kingdom country, the sites of social networking is largely used in
order to attaining better brand value to company. For aware people about the services of goods of
an organisation, digital technology helps in connect with the people.
Topic: How digital technology transformed the business activities: operational, marketing,
HR and accounting.
Background of research
Under this, it is essential for every business firm is to use and implement advanced and
digital technology in business for making them more easier. IKEA business firm is begin to sell
its own furniture online by the third pat of e- commerce such as Alibaba and Amazon. This
organisation makes innovation in its business and making all the activities effective or better.
Under this, digital technology is main concept which should be executed in every business firm.
In addition to the social media, it is more effective or beneficial in knowing about behaviour or
attitude of customers. It is necessary that management should know to manage all the necessary
activities in a successful manner to complete (Crane and Matten, 2016). Management should
decide the time period on the basis of activities so that decided target can be achieved with in
specific period of time and in an easy manner. With the help of using advanced technology,
IKEA business firm can minimize its operation cost and make improvement in the process of
communication. In context to this, digitalisation assess business to search new consumers as well
as markets to assure about development of business. Through this, firm can expand its business
in to new markets or countries. In addition to this, through digitalisation, outsourcing can support
operations in best possible manner. Under this, network can be developed ion better manner with
national as well as international suppliers by the social media. This process will be helpful in
purchase products, raw materials from suppliers at minimum cost. If the raw material will be of
good quality then products will also be better. In order to this, it is a responsibility of manager of
IKEA organisation to determine all necessary issues or challenges which develop negative
impact on performance of an organisation as well as operations. Effective strategies are helpful
in overcome from all necessary issues and run business firm in more successful manner. In this,
digitalisation is most beneficial in business environment and conducting all business operation in
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an easy manner. Its main motive is to affect of digitalisation which are associated with
communication, distribution, administration, storage etc. These all are helpful in transforming
activities in an effective or systematic manner to increasing profit level of an organisation with in
given period of time. With the help of executing the digital technology in business, firm can gain
many effective opportunities from which it cab maximise its development as well as growth. At
market place, there are many different technology but IKEA business firm use cloud technology
for doing its work in a systematic or effective manner (den Hertog and et. al., 2010). At market
place there are many large competitors of IKEA organisation such as ASDA, Walmart and many
others so from using the advanced technology, it can compete with them and also can achieve
competitive advantage. It will be helpful in increasing an economy of country in better or proper
way.
Aim: To evaluate an impact of digital technology on business activities. A case study on IKEA
organisation.
Project Objectives:
 To determine an impact of digitalisation on activities of IKEA firm.
 To identify advantages and limitations which are faced through IKEA company by using
digital technology.
 To evaluate challenges or issues of digital technology which impact on business activities
or performance of IKEA.
 Recommend some effective ways by which IKEA firm can make improvement in
business activities (Eckerson, 2010).
P2 Incorporating project management plan
Project management plan refers to formal documents which shows about execution of
project in an effective or easy manner. Under this, many different parts are included. In order to
implement, control and manage project management, there is a requirement to develop an
effective blue print regarding management plan. The main aim of this management plan is to
provide an idea regarding all project related tasks in detailed manner. With the help of this firm
can conduct its all activities in a systematic or proper manner (Farndale, Scullion and Sparrow,
2010). In addition to this, project management plan is helpful in assure about quality of project,
maintain effective interaction and also measure risk or resources by using various effective tools
and techniques. With the help of incorporating different components, firm can achieve aims and
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objectives with in a specific period of time. In order to this, it is necessary for an organisation to
doing its all necessary activities as well as operations in a systematic manner. Under this, project
management is responsible for develop better plan and also know about include all the details in
better manner. There are different types of elements involved at the time of developing effective
project management plan and these are cost, time, quality, scope, risk and resources,
communication and many others. After considering all these components, management plan will
be formulated in systematic manner. The performance of IKEA business organisation is estimate
on the success rate through digital transformation and various methods which are adopted
through an organisation. It is necessary that management should be make proper changes at
workplace. Some of the necessary elements are given below as above:
Scope- Each project has an scope of management and also should have better idea
regarding scope. At starting stage, project statement is framed to determined stages which are
necessary in finish whole project in better manner. With the help of adopting the digital
technology, business operations as well as activities of IKEA organisation, it can reach to
consumers and also get many effective benefits (Ferreira and et. al., 2013). The scope of project
is major part of management plan which consist determining as well as documenting specific
aims, functions, costs and tasks. In addition to this, it is necessary that management should
formulate its effective objectives in better manner.
Scope/ stage Expected time frame
1. Project planning 6 weeks
2. Project implementation and control 9 weeks
3. Project reporting and closing 3 weeks
Cost- It is a most necessary elements which is necessary to consist in project
management plan. It is essential to include this factor at the time of incorporating management
plan in an effective or proper manner. In addition to this, it is a responsibility of finance manager
to arrange or manage funds on the basis of set activities. The IKEA organisation entering in to
online market so there will be need of implement new technology and for this firm needs more
funds as comparison to resources. With out money, firm can not conduct its any activities along
with the operations in significant manner. Under this, there is a need to determine what cost will
need to be include in project, sources of money and then find various effective ways to control
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costing of finish project with in given period of time. In context to this, project department can
take help from experts to prepare management plan (Keller, Parameswaran and Jacob, 2011).
Through this, there will be no problem arise at the time of developing better project management
plan.
Activities Budget (£) Expenditure (£)
Project budget 10000
Material purchase:
Procure software 200
Procure hardware 500
Printer, paper and other materials 150
Labour & service cost:
Expert for research and planning (1 person) 3000
Expert for project execution 2500
Internet service (12 months) 1000
Website development 1500
Subscription & ads to social networks 800
Others 350
Total 10000 10000
Time- It is essential for manager to include this factor for planning or set activities on the
basis of time. If IKEA organisation which use as well as implement digital technology then in
this case time taken in production or operations process will be minimum. In addition to this,
digitalisation having great affect in finishing all activities or task before time to achieve set
objectives. In project management plan, it is necessary for manager to manage time in proper
manner. If in case time will not manage in proper manner according to activities then in this case
it can impact in cost, scope and also quality of project in negative way. At the time of developing
project management plan in better manner then manager should utilise the proper time.
Quality- Under this, cost as well as time managed in proper manner then quality is also
necessary. It is necessary that quality of service sand products should be effective so that
productivity can also be enhanced. IKEA organisation should perform various investigation on
its existing markets on project as well as consumer adaptability. IKEA should search all
obstacles which the project manager may face in order to overcome from all problems by some
of the essential steps. The people of this model era wants only better quality of products at
minimum cost which can satisfy their demands as well as needs in an effective manner. If quality
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will be better then in this case large number of consumers will be attracted towards firm. So
quality of project should be better and effective (Law, Chen and Wu, 2010).
Quality issues Stage Impact Control
Incorrect project objectives Planning High Review by expert/ supervisor
Unrealistic cost allocation Planning Medium Recording of each expenditure
Wrong project design Planning High Discuss with team members
before iExecution
Error in website Execution Medium Trial before execute
Weak data gather
instruments
Execution/
reporting
High Review by expert/ supervisor
Incorrect respondents Execution Medium Ensure right person before data
gathering
Incorrect data analysis
procedure
Closing/ reporting High Discuss with supervisor before
starting
Insufficient reporting Reporting High Sharing results and ideas with
supervisor
Communication- IT makes activities or tasks more easier. It is important that
communication among all staff members and also manager will be healthy or harmonious so that
they can work on achieving the set targets with in specific period of time. In order to execute
project, effective communication is necessary. For developing project more effective, an
organisation should use various communication related strategies. It will develop the positive
impact on business. With the help of digital technology, manger can interact with other
employees and share with them all information.
Stakeholder Description Frequency Format Week of the
timeline
Participants Initial communication As needed Email 5th week
Participants Meeting for data
collection
Once In person 7th- 8th week
Supervisor To show progress Every two
weeks
In person,
email
Entire period
Support
members
Help for data analysis/
software
As needed In person,
email
Entire period
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Risk and Resources- At the time of expanding business in to the other countries, there is
more risk involved which is faced through IKEA business firm. There are some advantages or
disadvantage of digital technology. Benefit is that digitalisation increase efficiency of business
operation and limitation is that it enhances cost of firm. Risk develops negative affect on
business along with its operations or activities. On the other hand, it is essential that resources
should be proper at the time of developing project management plan. In addition to this, it is a
impressionability of project manager to included all necessary resources in significant manner
(Markides, 2013). The resources which are essential to IKEA firm are some employees,
technology and many others.
Risk Impact Mitigation
Unrealistic timeline Medium Amendment with detail explanation
Absence of commitment High Focus on the Gantt chart
Weak cost control Medium Balancing cost among activities
Less support from experts Medium Seek support from management
Withdrawal from participation Medium Add extra respondents
Misuse of collected data High Follow ethical issues of the project
These all are the necessary elements which require to be included during developing of
project management plan in systematic or proper manner so that objectives of firm will be
achieved with in given period of time.
P3 Work breakdown structure and a Gantt chart to provide time frames and stages
The work break down structure and also Gantt chart both are the defective tool for
finishing whole project of IKEA business organisation. As IKEA organisation deals in retail
sector but its main area in which it deal is Furniture. It uses different kinds of technology in
business to make all its activities as well as operations better or successful manner.
Work breakdown structure (WBS)- It shows relationship between various tasks of
activities of project. It assess to the project manager in order to get an overview of whole project
in significant manner. Work breakdown is project deliverables which organise the work of a
team in to the managerial decisions (Massa and Tucci, 2013). Under this, organisation divide all
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its activities in to various categories. It consists a fragmentation of complete necessary tasks of
projects with in given period of time. IKEA business firm expand its business by acquisition and
for this, it is essential for management to identify business segments by using digital technology
to achieve more advantages. With they help of cost- advantage analysis, IKEA organisation will
be invest in business activities or operations through digitalisation. In addition to this, work
breakdown structure consists fragmentation of activities which are necessary in finishing the
specific project. If management will segment its all activities in to the small parts then in this
case all staff members will work in a proper or easy manner. It is necessary that organisation
should chose better process of selection of people with the help of introducing new software.
With the help of this, firm can give advertisement about its services or products through online
as well as offline system in order to cover more areas.
There are many advantages of Work break down structure in context to explain as well as
organise the work of project (Nadrljanski, Bozic and Batinica, 2010). In this, project budget is
allocated to top management of WBS and also budget of departments.
(Source: Work breakdown structure)
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Illustration 1: Work breakdown structure

Gantt chart- It is most popular chart that used in the project management. It will help to
the project manager to control as well as monitor all the activities in a proper or significant
manner. Through using this chart, all stakeholders of IKEA business firm take better ideas. In
addition to this, it is mostly preferable through business firm because its main focus on time
frame as well as project management (Polonsky and Waller, 2014). In context to this, there is a
requirement to get information in easy manner or running business significantly. The Gantt chart
represents data or information graphically. Under this, management divide its activities
according to the time frames. It is a kind of bar chart which illustrates about schedule of project.
It is mostly used in the project management and effective ways to displays all activities against
the time. Under this all the activities are displayed through bars. Length as well as position of bar
reflects begin and end data and also time duration of every activity. It is a simple versions which
are using applications of project management (Pourmand and Lari, 2016). It is commonly used
for track the schedule of project and also display additional information regarding different
phases or activities of project.
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M1 Comprehensive project management plan with clearly planned milestones and a schedule
It is essential for Monitoring of the project activities fin order to finishing objectives or
aims of project. If project manager will monitor all activities in a proper manner then many
problems will be arise at the time of project. In context to this, it is necessary for project manager
to monitor all activities in significant manner (Achtenhagen, Melin and Naldi, 2013). Under this,
milestone schedule is helpful to determine targeted aims of projects. For the purpose of cross-
checking of project, manager can use the millstone chart in proper manner. It aids to project
manager to control as well as monitor project effectively and also take essential initiatives
whenever necessary.
CONCLUSION
It has been concluded from the above given report that project management pa,n is
helpful in doing all necessary activities in a systematic manner by including all necessary
components. Under this mention report studied regarding clear objectives as well as aims of
projects in better manner. IKEA organisation develops Gantt chart and also work breakdown
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structure in order to provide stages and frameworks for completing of project also studied in this
mention assignment. It is essential that project management should focus on managing as well
as control all the business operations in systematic way. In mention report, IKEA organisation
incorporate the effective project management plan by including time, scope, communication,
risk, quality and resources.
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REFERENCES
Books and Journals
Achtenhagen, L., Melin, L. and Naldi, L., 2013. Dynamics of business models–strategizing,
critical capabilities and activities for sustained value creation. Long range planning.
46(6).pp.427-442.
Barringer, B., 2012. Entrepreneurship: Successfully Launching New Ventures, (2012).
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Crawford, L. and Nahmias, A.H., 2010. Competencies for managing change. International
journal of project management. 28. (4). pp.405-412.
den Hertog and et. al., 2010. Capabilities for managing service innovation: towards a conceptual
framework. Journal of Service Management. 21(4). pp.490-514.
Eckerson, W.W., 2010. Performance dashboards: measuring, monitoring, and managing your
business. John Wiley & Sons.
Farndale, E., Scullion, H. and Sparrow, P., 2010. The role of the corporate HR function in global
talent management. Journal of World Business. 45(2). pp.161-168.
Ferreira, A.M and et. al., 2013. A new method for pattern recognition in load profiles to support
decision-making in the management of the electric sector. International Journal of
Electrical Power & Energy Systems.53.pp.824-831.
Keller, K.L., Parameswaran, M.G. and Jacob, I., 2011. Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education India.
Law, C.C., Chen, C.C. and Wu, B.J., 2010. Managing the full ERP life-cycle: Considerations of
maintenance and support requirements and IT governance practice as integral elements
of the formula for successful ERP adoption. Computers in Industry. 61(3). pp.297-308.
Markides, C.C., 2013. Business model innovation: what can the ambidexterity literature teach
us?. The Academy of Management Perspectives. 27(4). pp.313-323.
Massa, L. and Tucci, C.L., 2013. Business model innovation. The Oxford Handbook of
Innovafion Management. pp.420-441.
Nadrljanski, M., Bozic, R. and Batinica, V., 2010. Methods of risk management in maritime
activities as a function of sustainable development.International Journal of Intelligent
Defence Support Systems.3(3-4). pp.172-185.
Polonsky, M.J. and Waller, D.S., 2014. Designing and managing a research project: A business
student's guide. Sage Publications.
Pourmand, J. and Lari, M.A., 2016. The study of relationship management with electronic
customer on the quality of customer relationship in mellat bank.International Journal of
Education and Management Studies.6(3). p.300.
ONLINE
Gantt Chart., 2017 [Online]. Available through: <http://www.investopedia.com/terms/g/gantt-
chart.asp>.
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