Factors Of Ikea

No man can sit down and withhold his hands from the warfare against wrong and get peace from his acquiescence .” President Woodrow Wilson could not maintain neutrality after a series of events that threatened the interests of the US. Wilson knew that he would not have the support of a diverse American public upon entering the war, so he came up with a plan. He designed the Committee on Public Information to advertise pro-war propaganda. He needed to convince the people that an involvement in the war was needed “to make the world safe for democracy .” Propaganda was heavily used to mobilize the public opinion of a united war effort, and it was also an attempt on homogenizing a pluralistic nation. The positive effects of this use were it unified a heterogeneous society, and it was able to get the Americans to invest their time and effort on the war. The negative effects of this were it caused hatred to those who were of the enemies’ ancestry, and false advertising lead to a loss of many innocent lives.

The culture of ownership is great strategy to motivate employees because the owners try harder than employees, both to improve the customer satisfaction and to save costs. This can be done in 2 ways

The company lays emphasis on its culture, which entails individuality, infirmity, growth, non- conformity and pride in what the company produces. It also focuses on providing excellent wages and benefits, superior training and advancement opportunities and also providing excellence which is the key to success for every business.

IKEA is one of the largest multinational companies in the world dealing with several products. The company sells and designs furniture appliances and home accessories at an affordable price. Ikea has over three hundred stores worldwide enjoying the good name it has created for itself. While they are one of the most profitable furniture companies in the world there are significant challenges and threats that have been overcome and are still needed to be tackled.

IKEA was founded in Sweden by Ingvar Kamprad in 1943. IKEA has been established around the world in 26 different countries. Within these countries IKEA has a total of 303 stores. This business is effective in adapting to change through the use of the four key business functions; operations, finance, marketing, and human resources.

IKEA is a global furniture retailer, which is established on the concept of contributing wide range of well designed, functional, and low cost home furnishing products in 40 countries, with 330 stores and 154,000 workers (The IKEA concept, 2012). IKEA was founded in 1943 by Ingvar Kampar and has turned in an international furniture retailer that specialized in stylish but inexpensive furniture designs.

In PEST analysis, we will look into what will be affect by the business environment. It includes political environment, economical environment, social environment and technological environment.

As one of IKEA’s fundamental innovation is the concept of self-service, RFID could give several benefits to IKEA because it can support self-service. Not only can customers get away from the queue by using RFID equipped cash desk, but also sharing accurate availability information through Electronic Price Labels. (idtechex, online, 2009)

IKEA has the radical innovation and groundbreaking core concept of the firm. They offer the disassembled furniture which enables much large stock and inventory at every retailer, which means customers can actually possess the product immediately at the day of purchasing. Beyond that, the IKEA 's sales clerks at the stores can pay more attention on in-store displays and efficient- processing line but not assemble and reassemble the large furniture and products inventory.

Aristotle defined nature “as an internal origin of change or stability”1. Natural substances are things such as animals, plants and inanimate matter like earth, water, fire and air. Each natural substance according to Aristotle has its own nature, which is what gives rise to its natural behaviour/characteristic. The nature of a natural substance is its inner principle/source of change.2

A cost advantage is mean that the company are able to provide their product or services at lower cost than the similar product in the marketplace. This advantage can be gain through using several production strategies such as economies of scale, get lower cost for factors of production from the suppliers, Just in Time system (JIT), maintains a strong relationship with the suppliers and so on. The lower labour cost which keeps the IKEA’s production cost in a low level of standard as a competitive advantage for it to other competitors. Since IKEA found out that the cost to manufacture their product in Poland was cheaper than they produce in Sweden, labour cost became the major issues that IKEA tries focusing on it. China, Poland,

Over all IKEA is doing differentiation and cost leadership. Differentiated because their products are different compared to the conventional ones already in the market. They defy the norms in terms of furniture style. They go with furniture with simple design. And they are a cost leader in terms of the price of their products are cheaper compared to other retailers. It is also shown by their company being cost conscious in everything that they do.

IKEA is using a different operation strategy from their competitors. The operation of IKEA has to cope with large volume because their products are highly repeatability and specialised. The variety of products the operation needs to create is low to medium as they offer

Organisational culture holds the organisation together and motivates employees to perform well and feel committed to

IKEA, founded in 1943 by Ingvar Kamprad, has a vision “to create a better everyday life for the many people”. With its business idea of “offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”, IKEA’s operational processes continues to focus on creating quality products and services at low costs as well as environment sustainability. (IKEA, 2016) More than being a furniture merchant, IKEA sells a brand that is easily recognizable, chic, stylish, minimalist and modern. It believes that everyone will leave IKEA store with something they like, be it the products or services. Its success is evident internationally where there are more than 300 stores in 35 countries. (Freden, 2015) The case study will