Professional Documents
Culture Documents
Presented By:
Gurjant Singh
Aulakh
Student ID:
Table of contents
Title
Introduction of the company
2.1 Approaches to internal environmental
2.2 Approaches to external environmental
2.3 Internal and external analysis
Slide Number
INTRODUCTION OF IKEA
The company is the world's largest
furniture retailer. Founded in 1943 by
17-year-old Ingvar Kamprad in Sweden.
IKEA has 300 home furnishing
superstores in 35 Countries and was
visited by some 583 million shoppers.
Industries
served
Retail
Geographic
areas
served
Logo
Worldwide
Industries served
Headquarters
Retail
Netherlands
Geographic areas
served CEO
Current
Worldwide
Mikael
Ohlsson
Headquarters
Current CEO
Mikael Ohlsson
Revenue
Netherlands
Profit
Revenue
27.628
3.202
billion (2012)
billion (2012)
Profit
Employees
3.202 billion
(2012)
139,000
(2012)
Employees
Main
Main Competitors
Competitors
139,000 (2012)
BUSINESS ENNVIRONMENT
Thecombinationof
internal
environmentof
an
organization deals with the management of
resources like human resources, physical
resources, technology, monetary resources
and others that constitute the organization
in order to implement or execute a
strategy.
McKinsey 7-s
2.
3.
4.
Cont ...
McKinsey 7s model
McKinsey
Cont ...
SWOT Analysis
SWOT
Cont ...
SWOT
SWOT analysis 2013
Strengths
Weaknesses
1.Customer knowledge
2.Constantly using innovations to
drive costs down
3.Supply chain integration
4.Brand reputation and market
presence
5.Diversified product portfolio
1. Negative publicity
2. Decreasing quality
3. Standard products
Cont ...
STRENGTHS
Swot
Analysis
Implemen
tation on
Ikea
Weaknesses
Swot
Analysis
Implemen
tation on
Ikea
Value-Chain Analysis
Cont ...
Cont ...
Primary activities
1 inbound logistics
2 Operations
3 Outbound Logistics
4 Marketing sales
secondary Activities
1 Procurement
2 Human resource
management
3 technology development
4 infrastructure
5 Service
Cont ...
Justification
Finally I want to say that swat analysis is best for ikea. It can give a clear idea
about the market, substitutes and what ikea need to do improve their
position in the market . It can also give them clear definition of their
position. It can explain their brand value, reputation and product portfolio.
Analysis
SWOT
Porters
Five forces
Cont ...
SWOT analysis
Threats
Intensifying competition
Growth of average consumer
income
Cont ...
Opportunities
Threats
PESTLE Analysis
A PESTEL
analysis is a framework
or tool used by marketers to
analyse and monitor the macroenvironmental (external
marketing environment) factors
that have an impact on an
organisation. The result of which
is used to identify threats and
weaknesses which is used in
aSWOT analysis.
A business can create opportunities and counter threats by making the most
of its strengths and addressing its weaknesses. For example, one of IKEA's key
strengths is its strategic aim to use no more material than necessary in the
production of each item. In addition, it develops its product plans to increase
its use of waste or recycled materials.
One particular table, the NORDEN table, uses knotty birch wood. The knots in
this wood usually mean it is rejected by other retailers and manufacturers as
unsuitable for use. However, IKEA has made the knots part of its design
feature.
Cont ...
Justification
After explaining several techniques i can conclude that the pestel analysis is
best ikea because its cost effective and its promote discussion. Its also gives
visual overview of the company and offers a insight understanding of the
company. But if PESTEL and Swot can be done together it can be more
effective and can fosters collaboration in Ikea.
Conclusion
As it is about all about operating in International Markets, and International
Business, we do notknow which strategy will best suit such multinational
companies that is we do not know whethera Global standardization, or
Internationalization, Transnational, or Localization, whichinternational
strategy is going to work in which corner of the world. All we can conclude
bysaying is that before entering into a new market a firm should do its
necessary homeworks unlike IKEA which always did mistakes first and then
learnt from it. This will save millions andbillions of dollars of a company and
this will also help sustain in the long run and secure itscompetitive advantage
in the global market as well.
References
http://www.businessdictionary.com/definition/business-environment.html#ixzz48uS9uKa
U
https://www.boundless.com/management/textbooks/boundless-management-textbook/stra
tegic-management-12/creating-strategy-common-approaches-89/combining-internal-and
-external-analyses-431-5825/
Charles W.L. Hill, Gareth R. Jones. Theory of Strategic Management with Case.9 th
Edition,South-Western Cengage Learning, 2010