...management is an activity that manage resource which is devoted for production and delivery of products and services. Additionally (Slack et al, 2008) lecture notes of I G Perera. ‘It is about the way in which organisations produce goods and services.’ The below assignment will show how IKEA’ operations management has made IKEA to one of the most successful furniture retailer in the world. The assignment is divided into three parts. The first part will analyze the elements of IKEA and operation management. The second part will identify the main V’s used by IKEA and design process. The third part will identify how IKEA has met customer needs and will explain how the business objectives of IKEA is met. At the end, recommendations for IKEA will be provided and a conclusion is drawn. Every organization has a part for the operations functions as all organization produce products or services. Research has noted that most important element in IKEA furniture’s is that they are self-assembled. A view of the IKEA furniture is outlined in Why You Love That IKEA Table, Even If It’s Crooked, by Shankar Vedantan ( February 06, 2013) Most humans would want to say that I made it, it is my products, that is what IKEA has done. Further the furniture’s are made out of timber, in planet friendly manner, which would result in going to earth after the end of the life cycle in operations management. Operations strategy Operations strategy Supply network design Supply...
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...Introduction At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lends to systematising operations but which implies capital intensive processes and therefore cost considerations will be crucial. Second, IKEA offers a large number of products (up to 14000 depending on the country/store) so there is high variety in the production process which not only leads to the need for complex and flexible processes but also entails high unit costs. Third, variation in demand will however be low, or at the least predicable (holiday periods for example) so advanced planning is possible which eliminates the need to set resources aside as a “capacity cushion” for unexpected demand. Lastly, IKEA – again as most retailers – have high process visibility, or in other words display a high degree of direct customer experience, which underlines the importance of dedicating sufficient attention to the shopping experience in all its facets. In what follows, and in line with the questions for this TMS, the implications of the five performance objectives to IKEA will be examined as well as the company’s key operational decisions that have impacted on these objectives. Thereafter 1. Question 1 There are five aspects of operations performance that to varying degrees impact on customer satisfaction and business...
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...1.0 Introduction An objective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strength and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goods and services is being monitoring and managing. Operations management is the activity of managing the resources which produce and deliver products and services (Slack, Chambers and Johnston, 2010). Operations management is important because without a proper operations management, an organization will unable to transform their knowledge, information, skill and resources to produce products or service in order to add value and satisfaction to their consumers to generate profits. 1.1 Background of IKEA IKEA, an internationally well-known Swedish home of furnishing, started its operation in 1943, by founder - Ingvar Kamprad. It is the largest Swedish home furnishing retailer and designer in the world. IKEA is very famous with it low price concept where they produce and offer well-designed and functional home furnishing products at price as low as possible with variety of choices. They target to sell their brand to as many as possible of consumer who afford...
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...[pic] Operation Management Assignment Task 1 4 Vs of IKEA FURNITURE Name Saqib Ali Enrolment ID 30113460 Submitted to Dr Maria Zenaida Mullin Submission date 14 Aug, 2015 IKEA FURNITURE OUTLETS Executive summary Brief summary findings It’s difficult to manage furniture store like IKEA because lot of employees are required to run the operations smoothly and it’s a big problem to manage bigger workforce, so that’s why it’s one of the biggest issue for the IKEA furniture to handle the big workforce. IKEA furniture retail stores having very big and complicated store structure, which is also one of main problem to organize, in any worst case like fire into the store it’s difficult to move everyone out of the retail store. And big furniture Retail stores like IKEA also having a lot of products like chairs, beds, sofas etc. So in case, sales of the products gone slow all of the product gone dusty and its difficult to maintain all furniture clean and in good condition. (Furniture World 2012). Conclusion After analysing all the operation of the IKEA furniture, I am able to find out IKEA furniture emphasis a lot on efficiency and effectiveness of its operation management. The company has implemented its operations management strategy in all of its business process and operations to maintain low cost model. IKEA furniture’s is one of the best examples of the corporations who concentrate high effective operation management. ...
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...Contents Introduction 2 Task 1: Nature and the Importance of Operation Management 2 Task 2: The Link between Operation Management and Strategic Planning 4 Task 3: Organizing a Typical Production Process 6 Task 4: Application of Relevant Technique to the Production of an Operational Plan for an Organization 7 Conclusion: 9 References: 10 Introduction Operation management is a part of overall function of a business organization. It means planning, organizing, staffing, leading and controlling the resources of a company those are used to make goods or services of that particular organization. So it can also be said as a part of management function. Operation management is important for any kinds of company including for- profit, not-for-profit, social, commercial etc. IT performs the prime managerial activities of any organization. Weather the organization is service oriented or profit oriented to achieve goals it needs to manage its resources like human, technological, informational etc. organizational management makes the way for a better combination of these resources. In this assignment the nature and importance of operation management will be described. The importance of organization management for an organization, its operation in a selected organization and evaluation of operational management of a selected organization by using a process model also will be described. There is a link between operation management and strategic management it will also be explained...
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...26 strategic Communication case 3 steve greenland and Bernadette van lunenBurg Swinburne University of Technology It’s all in the design: How IKEA makes you buy with clever store design introduction This case study reflects on one of the most significant challenges facing modern-day retailers—online versus high street distribution and the viability of physical outlets. Here we examine the importance of ‘place’ in the marketing mix, covering aspects such as channel strategy, store design objectives, and the critical role that outlets play in communicating with customers. Shopping behaviour has undergone a dramatic evolution over the past decade with many retailers struggling to keep up with the rapidly evolving, contemporary consumer (IBM 2011). Future success will go to those best able to adapt their delivery modes and communication strategies to this modern shopper. The case study looks at the Swedish furniture giant IKEA, which is not only surviving difficult economic times but is rapidly expanding its retail presence in the Asia-Pacific (APAC) region. A cornerstone of IKEA’s success has been an innovative multichannel distribution and communication strategy. n 28 strategic Communication Trends in retail distribution and shopping habits A poor global economic climate has had a massive impact upon consumer spending, resulting in mounting retailer insolvency. Australia is no exception, with downward-spiralling consumer confidence being further eroded...
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...IKEA: Ecommerce Expansion/ IT Capacity Management Information System Initiative LASA 1 Organizational Structure IKEA currently holds the position as the world’s largest furniture retail chain, with 332 locations, in 32 countries worldwide. IKEA is operated and owned by an array of no-for-profit corporations. The Organizational Structure is divided into two main entities: Franchising and operations. Many of IKEA’s operations, including the manufacturing and design of products, the managerial operations, and the supply-chain processes, are overseen by INGHKA Holding, which is private, for-profit Dutch Corporation. INGHKA Holding currently runs 235 of the IKEA stores, the remaining are operated and ran by franchises that are outside of INGHKA Holding. IKEA has differentiate themselves from their competitors, by satisfying the needs and wants of their consumers, with upholding a value proposition that is center on providing, high-quality products (furniture), at affordable prices. IKEA’s value proposition differentiated them from their competitors, secured competitive advantage and positioned themselves as the leader in furniture retailer, on a global level, by their value-based services, and marketing mix that emphasizes on areas such as: Location, Merchandise, Store Format, Market Communications, and Service and Selling Environment, which produced a remarkable “brand image”; “The essential role of brands is to differentiate a product or service from others in satisfying a...
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...Case Study on IKEA Executive Summary The case study of IKEA has been read, analyzed; and the findings are presented in the report as required. The goal of the report was to analyze the case study of IKEA and then to present the findings as well as performing some tasks that are required in this report. Firstly, some terms that are closely associated with marketing has been described and analyzed. In addition to that, those terms are also discussed in relation with the case study. Brand, Business strategy, retail sector, price sensitive and franchisee are the terms that have been discussed in this report in the first section. In the second section, the required calculation for average number of customers of each sector and average spending of customers has been worked out. A new mission statement for IKEA has also been proposed there along with the justification for the mission statement. In the third section, the importance and nature of SWOT analysis has been discussed and elaborated. It is seen in the case study that IKEA performs a SWOT analysis that supports their process of building strategy. Moreover, the SWOT analysis of IKEA has also been performed and justified. In the fourth section, SMART objectives and some new marketing mix ideas for IKEA has been demonstrated. In the fifth Section, the concept of marketing model and minimizing the threats for IKEA has been included and demonstrated. Ultimately, the report contains what were required...
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...Strategic Management Section A: Objective Type (30 marks) •This section consists of multiple choice questions & Short notes type questions. •Answer all the questions. •Part one questions carry 1 mark each & Part two questions carry 5 marks each. Part One: Multiple choices: 1. A plan of action designed to achieve a particular goal is: b. Strategy 2. It is important to develop mission statement for: a. Allocating organizational resources 3. The five forces model was developed by: c. Michael E. Porter 4. How many elements are involve in developing in an organizational strategy: a. Six 5. The three important steps in SWOT analysis are: b. Opportunities, Threats, Strengths 6. GE matrix consists of how many cells? a. Nine cells 7. Which of these is the type of Games: d. All of the above 8. SBU stands for c. Strategic Business Unit 9. The BCG matrix is known as: a. Growth share matrix 10. ______________ specifies sales revenues and selling distribution and marketing costs. b. Sales budget ________________________________________ Section A: Part Two: 1. What are the dimensions of Strategic management? Answer: Strategic management process involves the entire range of decisions. Typically, strategic issues have six identifiable dimensions: 1. Top management involvement: Strategic management relates to several areas of a firm’s operations. So, it requires top management’s involvement. Generally, only the...
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...IKEA Analysis Repot Having a successful company takes a lot of work and researching. You see a lot of big successful firms go out of business after many years of being open due to lack of marketing and not being able to keep up with the rapid growing competition. It takes the integration of sales, marketing, front of the line staff and knowing your customers wants and needs to be successful for decades. Not listening to customer demands could be detrimental to your organization. Even if you are successful now, another competitor can rise and take away your market share. An organization should not only care about sales and revenue growth, they need to also be conscience about the environment and care about the working environment of their employees. IKEA is a Swedish company that dominates in the furniture industry and is very successful with their sales and marketing strategies. They are also very conscience about the external environment. They have been in the foreign market since 1973, they currently have stores in over 37 countries and are continuing to grow (most recently Asia). By following the traditional pattern of globalization, first operating in countries with similar cultures and then expanding to the foreign market, they were able to have great international success (Burt, Johansson & Thelander, 2011). We will discuss in detail why IKEA strategies are so effective and why other organization should learn from their current success. IKEA’s Marketing ...
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...Today, IKEA is the world’s largest furniture retailer and it is also internationally known as home furnishing retailer. IKEA always concern for people and the environment. Besides that, it also responds to the public and customer’s rising concern for sustainability in its choice of product range, suppliers, stores and communication. However, there are still problems faced by IKEA from the aspect of organization development that requires changes to take place in order for the organization to improve efficiency and effectiveness of its existing operations and also to ensure that goals and objectives of the organization can be achieved. The first problem encountered by IKEA is the size and scale of its global business. IKEA is known as the world’s largest furniture retailer and carries a range of 9,500 products, including home furniture and accessories. It also means that IKEA’S outlet is widely establish in many other countries. Thus, this could make it extremely hard to control in terms of its standards and quality. So they must figure out some solutions to deal with the problem which will bring benefits to whole organization. Also, the quality of the products in each country may be slightly varied from others. For example, some countries where IKEA products are manufactured do not implement the legislation to control working conditions. Hence, this could represent a weak link in IKEA’S supply chain and also affecting consumer’s view towards IKEA’S products. In terms of that...
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...................................................................14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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...................................................................14 List of Figures Fig: 2.0 Diagrammatic representations of Hofstede’s cultural dimensions...............................7 AN ANALYSIS OF THE CULTURE OF AN ORGANIZATION 1.0 Background to the Organization Organization culture is a predominant aspect of an organization’s internal environment Azhar (2003). Culture, to some extent, influences performance and efficiency in an organization Rousseau (2000). Every organization has its unique culture that differs from that of other corporate Schein (2004). For purposes of this report I chose IKEA group, I will conduct an in-depth analysis of its culture using the appropriate cultural analysis frameworks and dimensions. IKEA group is a multinational corporation that has a strong corporate culture that is entrenched in its core values. IKEA has its roots in Sweden; it was incorporated as Inter IKEA Systems B. V. in 1983 in the Netherlands. The primary goal or idea of founding IKEA was to make it conceptualize and operationalize IKEA business model in what has...
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...Author Author Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Contents Introduction 2 About IKEA 2 1.0 Analysis of Indian Market 3 1.1 Micro Analysis 3 1.1.1 PESTEL Analysis 3 1.2 Micro Analysis 4 1.2.1 SWOT Analysis 4 1.3 Impact on Hofstede Culture Dimension 5 a) Collectivism vs Individualism 6 b) Femininity vs Masculinity 6 c) Avoidance of Uncertainties 6 d) Power Distance 6 1.4 Porter’s Diamond Model 7 2.0 Global Marketing Objective 7 2.1 Porter’s Generic Strategy Mix 8 2.2 Ansoff’s Marketing Strategies 8 3.0 Mode of entry 9 4.0 7 P’s of Marketing 10 a)Product 10 b) Process 10 c) Price 10 d) Physical evidence 11 e) Place 11 f) People 11 g) Promotion 11 References 0 List of Figure Figure 1: SWOT Analysis 5 Figure 2: Hofstede Dimensions 7 Figure 3: Comparison of Entry Mode 9 Introduction India is developing country, populated with 1.2 billion people. India’s economy is of very worthwhile. The current analysis shows India is expected to be considering in Top 5 economies in the world. Due to powerful economic development in past few decades, the living standards of Indian nation are improved and improving day by day. The people of India are establishing themselves in the field of information technology and in other industries. They also step up in urbanization and trend of using foreign band has increased much. The retailing...
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...HISTORY: IKEA is a globally famous home furnishing retailer. IKEA was founded by a 17 years old boy Ingvar Kamprad in 1943. It has grown rapidly and today it is the world's largest furniture retailer, known for its cost control, operational details and continuous product development, allowing it to lower its prices while continuing its global expansion. Since then, the IKEA Group has grown into an international retail brand with 131,000 co-workers in 41 countries generating annual sales of more than 24.7 billion EURO. IKEA carries a range of approximately 9,500 products, majority of which is flat-pack resulting in reduction in costs and packaging. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. IKEA stores include restaurants and cafés serving typical Swedish food. They also have small food shops selling Swedish groceries. The biggest sales countries are Germany, USA, France, UK and Sweden. Competitive prices are one of the foundations of the IKEA concept and help to make customers want to buy from IKEA. This low price strategy is united with a wide range of well designed, useful products. IKEA’s products provide for every lifestyle and life stage of its customers, who come from all age groups and types of households. This is vital in times when the retail sector is depressed, as it increases IKEA’s potential market. I have selected The Home Depot for comparison with IKEA which are one of the largest...
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