Business strategy IKEA group Case Study Example | Topics and Well Written Essays - 2000 words

Business strategy IKEA group - Case Study employmentUsing secondary research this report result present the emergent and direct strategies of this company and go away overly explain the reasons for IKEA to follow them. The report will then explain the importance of written strategic plan and cite the approach companies must rejoinder to deal with emergent events. This report too presents the proximo strategies for IKEA by using Ansoffs matrix.The history of IKEA in the Appendices section shows its steady growth over the years. This report right off gives frameworks of emergent strategies and direct strategies of IKEA and the reasons for following them.(i) The company generally works through a network of ecumenic suppliers and doesnt manufacture its own reapings. But, the company has few factories that set benchmarks for their suppliers on production economy, and quality (Nattrass and Altomare, 1999). The company focuses on achieving efficiency at low cost without compromis ing on the quality (Rosenhauer, 2008). By setting an example in front of the suppliers, the company can get better products from them and deliver more customer satisfaction.(ii) IKEA is also the joint owner or financer in a number of countries to secure supplies and help suppliers develop (Nattrass and Altomare, 1999). This whitethorn increase IKEAs competitiveness as companies can increase their competitive positioning by undertaking light upon activities in the value chain. The company also makes efforts to form close relationship with the suppliers and helps them develop, and innovate through teaching programs (Rosenhauer, 2008). This ensures better cooperation with the suppliers who strive to give quality products at a very low price. Relevant and punctual training can provide the valuable guidance that can help suppliers produce the right product for the customers.(iii) The global furniture giant is characterized by lesser hierarchical structure and absence of bureaucracy. This helps the company to name centralized control over key functional activities. The Chairman of the company believes that strategic decisions of an organization should be reached in a simple manner (Rosenhauer, 2008). IKEA also delegates important strategy decisions to their store managers (Nesbitt, 2004). Apparently, this freedom to take decisions will make the managers feel more responsible towards their jobs and they will become more loyal to the organization. rising Strategies(i) The company has begun to focus on inviting the customers to be involved in the design and production of the products. IKEA is focussed on redefining roles of their stakeholders in the furniture business so that it can effectively beat the competition (Rosenhauer, 2008). The company has also begun to target young people who have a liking for stylish designs available at affordable price (Winfield et al, 2004). By involving the stakeholders in the design the company can provide customers with product s that they really want and this will give them a competitive edge. The company will no longer waste its energies in sleeveless work and focus on making only those designs that click. (ii) IKEA was driven to change its strategy and pay more attention to taking care of the environment. The company was criticized for the huge packaging waste, using excess of PVC shaping and cutting trees to make its catalogues. This global home furnishings