Marketing Principles and Business Practice: IKEA

The mission defines the organization’s purpose, values, and core goals, providing the framework for all other plans. It is simple, vivid and compelling so that the employees from the janitor to the CEO, from the customers to investors can easily understand.

1. Mission and Vision Statement – Mission is a written declaration of the purpose of an organization and Vision is that business will accomplish in future years.

This is the agreed-upon statement by the organization and explains the reason for its existence. It is necessarily broad to encompass the diversity within the business. The statement is not precise in its measurements nor does it need to be, but it does need to be periodically reviewed by the business to see whether it still encompasses all of the relevant activities of the business.

Most organization have develop an element called a mission statement. A mission statement describes and helps focus the attention of organizational members and external constituents on the organization's core purpose. This is use in the criminal justice and security agency use mission statement for the success of the organization and better serve the community or businesses that they have agree to serve and protect.

The mission statement is often publically stated and used by almost every organization today. It helps provide basic guidelines, essentially the core values of a company, and what they aim for. A mission statement gives customers

As the authors Dess, McNamara, and Eisner pointed out in the text book, the mission statements is " a set of organizational goals that includes the purpose of the organization, its scope of operations, and the basis of its competitive advantage". (p.26) In other words, a mission statement communicates why the firm exists and how they are going to respond to their stakeholders. In order for a mission statement be successful it has to have the following: a clear and specific knowledge of the purpose of the business, it has to inspires and motivates the business 's stakeholders, reflect what differentiates them from the competitors, and it has to be easy to understand and easy to

In this assignment I will be exploring what missions statements are, ethos and the values the schools set to reflect their vision. Mission: this means that is it a statement of what an organisation is focusing on and why they want to do it. An example of a mission statement; “Our vision is to create a school community where children participate, excel and are proud of their achievements…” set by Round Hill primary school. Schools create mission statements in order to set themselves a Goal to reach for, a goal in which everyone will learn from it and gain an experience, because the statement they have set is creating them a vision to aim for.

We believe what is good for society is good for IKEA. We are passionate about creating a successful business where we act in a responsible way through small and large actions. It is a way of being. This is why sustainability is a cornerstone in the IKEA strategic direction – it is highly prioritized and serves as a driver of further innovation and development. Economizing with resource, finding new ways of doing things and developing our knowledge and expertise are important parts of our business idea and heritage. A low price company must be a low cost company, and this includes being careful with earth’s limited resources. IKEA has unique capabilities and tremendous enthusiasm to make a positive contribution across the world – from the forests of Siberia to the cotton fields of India and all the way into people’s homes in New York, Lisbon and Shanghai. Our customers rightly expect us to not only to make our products in a responsible way, but also to help them live more sustainable

Organizing the direction of a business or corporation is essential because it can increase profitability and provide broad guidelines for how to accomplish the organization goals. This is where a mission statement becomes useful. A mission statement should be short, concise, and to the point. Employees should be able to remember it and make it part of their everyday work culture.

IKEA has adapted to the operations function of a business. This function is the main function of every company. This key function, of which IKEA has adapted to, is the business function responsible for managing the process of creation of goods and services. The operations function is responsible for organising, coordinating, planning, and controlling the resources that are required in the production of goods and services. IKEA has effectively implemented this function by understanding the needs of customers. In particular, this applies to those who have a lower income, and/or, limited space. IKEA’s employees within the product design and product development departments, focus directly on the price and quality, as well as the design and function of products. Elements of the design are typically agreed on within the factory itself, this is where manufacturers and designers work together, to create a product with regard to the greatest use of raw materials and manufacturing opportunities. IKEA’s operations have proved effective as in 2013 it earned $35.5 billion. IKEA has a large amount of suppliers, greater than 1300. IKEA purchases most of their

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.

Price – In terms of price, the author will analyze IKEA’s pricing strategy to see what kind of pricing strategy IKEA uses such as premium pricing or economy pricing, promotional pricing or value pricing? IKEA always attempts to provide low prices. The author will analyze the pricing strategy using links available at IKEA student webpage (How IKEA creates its low prices, IKEA products are manufactured all over the world) and will provide an overview on how IKEA is able to achieve low prices.

IKEA also based on low cost to achieve hybrid strategy. Big items are all flat-packed that the customers transported and assembled themselves. This saves IKEA with shipping costs from suppliers and delivery costs to customers so that they can pass this benefit to customers through low price. In the stores, there are no armies of sales staffs. Customers are providing with tape measures and pencils so that they can self-served. This reducing the number of sales staff required. IKEA encourages customers to create value for themselves by taking on certain tasks traditionally done by the retailers and their low expectation on service levels keeps costs down. Additionally, IKEA choose most economical suppliers over traditional suppliers around the world. The company buys great volume of materials from suppliers to get the economies of scale. Since the labour in UK is expensive, their products are produced in

On the other hand, mission statement is the reason why a company exists and it’s a statement that declares the core purpose of a company. Mission statement usually will remain the same over time (Bratianu, 2007). The mission is different from a vision as it aims to create competitive advantage and also achieve the social goal of a company (Bratianu, 2007).

The aim of this report is to analyze ‘IKEA’ as a company and produce a tactical plan. To make an evaluation on the international marketing activities of the IKEA through the use of various marketing techniques including PEST and SWOT analysis and will conduct critical analysis of the existing international marketing strategies and issues facing ‘IKEA’ and how they can enter into India and Indian market, and will discuss about possible recommendations and solutions that the company can should employ and how these should be applied to enter new market and run the business with a new strategy followed by the conclusion.