Ikea Swot Analysis Essay

In PESTEL framework, the external environment is classified into six broad categories: Political, Economic, Social,

PESTEL analysis is widely used to better understand the external environment of the company. The acronym PESTEL stands for political, economic, sociocultural, technological, environmental, and legal factors. PESTEL analysis helps managers better understand the threats and opportunities a company faces.

Pestel analysis consists of environmental factors that lead to the understanding weaknesses and strengths of the organization in an attempt to influence the organization’s success. The macro-environmental factors are political, economic, social, technological, environment and legal.

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

The essence of the External Environment analysis is to know where the company or business lacks and what are the restrictions that hinders the company to achieve their goals. By doing this, TransSprech, A.G could have a better and clear picture on how the company could improve their performance for them to be more efficient and generate more sales. Listed below are the Weaknesses of TransSprech, A.G:

One night in 1981, Jeff Munks, a police office in San Jose, CA responded to an urgent call and arrived at a residence where a Vietnamese immigrant who spoke no English was screaming and waving his arms agitatedly. Next to him, his son was having trouble breathing. After Jeff guessed what had been happening and immediately called for an ambulance, he kept thinking about emergency situations where danger is exacerbated because of a language barrier. This resulted in Telephone Interpretation being offered since that year. This service connects trained interpreters via telephone to Limited English Proficient (LEP) Individuals. Cyracom International is one of those companies that provide critical

The environment is like a double-edged sword, providing companies opportunities but threats as well. Therefore, in an increasingly hostile marketplace, a systematic and careful environmental analysis is supposed to be considered by companies (Johnson et al, 2011). The macro-environment of a company can be analysed by the framework of PESTEL, which includes six categories: political, economic, social, technological, environmental, and legal (Johnson et al, 2011, Appendix A ).

PESTEL analysis helps to infer whether a particular factor is helping the organization to achieve its goals or is affecting in its road to success.

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

According to Michael Porter, “competitive strategy is about being different. It means deliberately choosing a different set of activities to deliver a unique mix of value” (1996, p.4). IKEA’s strategy was the epitome of different. Moreover, it’s initial advertising and marketing promoted its image as “those impossible Swedes with strange ideas”

Q3) In terms of the external environment analysis, we will focus on three areas, namely, general environment, industry environment and competitor’s environment.

PESTEL analysis is a method used to study macroeconomics - the macroeconomic environment of an enterprise. Otherwise, it is called the general segmentation of the environment. It defines the basic spheres of the environment, which are areas that have a crucial impact on the functioning of the organization. Also marks the future strategy of the organization through an in-depth analysis.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If

The company starts when Ingvar Kamprad from Sweden and when he was really child only with 17 years old, he started selling matches and later on added ballpoints in his product list. He used to have a curious

In addition, threat for a new entrant for a home and furniture industrial is important. There has no legal restriction for a new business to enter the market. However it is very hard for the new business to make profit from economics of scale as same as IKEA in the early stage of running business. IKEA has been became a successful entrant and perfectly turn the business into an international furniture market due to their good performance in the market ,at the same time, IKEA also stop other competitors from entering the market. Therefore, the threat for new entrant for IKEA is quite low.