Why IKEA’s Operations Model Is So Successful Operations management is an essential part of the Swedish furniture company IKEA’s success. Its management systems have enabled the company to offer more than 9,500 products at competitive prices as it has grown over nearly eight decades. IKEA’s reputation has rested on its efficient and effective management of: Product and process design, Inventory, Quality assurance, Supply chain networks and Back-end operations. These management systems have made the company the highest-valued retail furniture brand that has been exemplary in management and business textbooks worldwide. As an innovative leader of successful management practices, IKEA represents what effective operations management can do for a business or organization. IKEA’s Operational Model Since its inception in Sweden in 1943, IKEA has offered affordable, high-quality furniture to the masses. Today, IKEA is the largest and most valuable furniture retail chain globally, with over 400 locations operating in 52 countries. From the comfortable showrooms navigating customers through a labyrinth of product displays to the innovative thinking that created flat packing and ready-to-assemble furniture, IKEA’s success relies on efficient and effective operational management solutions. Through tight control over operational efficiencies in the design, production, supply chain, anddistribution processes, IKEA has been able to keep consumer and manufacturing costs low while growing the company on a world stage. IKEA perfectly demonstrates the power and significance of operational management systems to elevate a business and optimize its workflows. Q.1. Argue on how below could pose to be achallenge in operations management for IKEA. 1. globalisation 2. fourth industrial revolution Q. 2. Illustrate a transformational model for the construction of a wooden furniture table at one of IKEA’s stores. 1. When identifying inputs, discussing the transformation process or identifying outputs and include the feeedback. you may take liberties in line with the context of the scenario provided.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
icon
Related questions
Question

Why IKEA’s Operations Model Is So Successful

Operations management is an essential part of the Swedish furniture company IKEA’s success. Its
management systems have enabled the company to offer more than 9,500 products at competitive
prices as it has grown over nearly eight decades.
IKEA’s reputation has rested on its efficient and effective management of:
Product and process design, Inventory, Quality assurance, Supply chain networks and Back-end
operations. These management systems have made the company the highest-valued retail furniture brand that
has been exemplary in management and business textbooks worldwide. As an innovative leader of
successful management practices, IKEA represents what effective operations management can do
for a business or organization.
IKEA’s Operational Model
Since its inception in Sweden in 1943, IKEA has offered affordable, high-quality furniture to the
masses. Today, IKEA is the largest and most valuable furniture retail chain globally, with over 400
locations operating in 52 countries. From the comfortable showrooms navigating customers
through a labyrinth of product displays to the innovative thinking that created flat packing and
ready-to-assemble furniture, IKEA’s success relies on efficient and effective operational
management solutions. Through tight control over operational efficiencies in the design, production, supply chain, anddistribution processes, IKEA has been able to keep consumer and manufacturing costs low while
growing the company on a world stage. IKEA perfectly demonstrates the power and significance of
operational management systems to elevate a business and optimize its workflows. 

 

Q.1. Argue on how below   could pose to be achallenge in operations management for IKEA. 

1. globalisation

2. fourth industrial revolution

Q. 2. Illustrate a transformational model for the construction of a wooden furniture table at one of IKEA’s stores.
1. When identifying inputs, discussing the transformation process or identifying outputs and include the feeedback. you may take liberties in line with the context of the scenario provided.

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Outsourcing
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.