Define a state and discuss whether states are still relevant. Be sure to cite the author or doctrinal reference you used. Explain why or why not. Define strategy and explain how it informs planning.
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You can be sure that: Place your order today with complete confidence What are the key issues in the external and competitive environment affecting Ikea? Discuss the opportunities and threats for your organisation. Executive Summary SinceIkea has increased its number of stores by The company comprised stores as of Augustand there are plans to open a further 16 new stores in both fiscal and Ikea United Kingdom, However, although the company opened 14 new stores in fiscalsales growth was only 2.
Global Market Information Database, Thus, it is clear that, in order to improve performance at a significant level, merely opening new stores is not enough.
Known for its Scandinavian style, the company has gone from selling fish, vegetable seed and magazines as it did in to furniture other household items, including dinnerware, pillows, lighting and rugs.
Recent years have shown a reduction in the growth of sales. Another key factor in the slowdown is perhaps a lack of strategic direction. Controlled by Ikea of Sweden, marketing strategy is set worldwide with little variation and this is perhaps a factor in its recent downturn of growth in sales.
The developed nature of the Japanese market offers marked short-term potential, with its westernised spending patterns, although Russia and China offer more medium-term potential: However, in order to generate this upturn in performance, Ikea has to carefully analyse and consider the key issues in its external environment, and act accordingly.
Changing Headquarters Until Septemberthe company was headquartered in Denmark but due to problems such as poor flight connections, a decision was made to relocate Group management, finance and treasury departments to Leiden in the Netherlands and the rest of the headquarter departments to Sweden.
External Operations Unlike most other international retailers, the company does not involve itself in many joint ventures or partnerships, and as of FebruaryIkea was involved in three agreements.
In FebruaryIkea announced the signing of an agreement with Telecoms giant Nortel Networks to deploy interactive voice response technology for its customer service centres in Germany and Switzerland. In JulyIkea announced the signing of an agreement with Musicmusicmusic inc.
The service consists of a zone system strategically situated throughout the various departments and offices of the building, with its aim being to ensure that the store keeps and motivates customers, as well as encourages staff. The agreement also covers maintenance and support and applies to its use in the Ikea organisation globally, enabling the company to rapidly grow and develop its online offering in order to counter one of the key issues in its competitive environment: The company also maintains total control of its design, pricing and supply of product ranges globally, and thus has a product portfolio that caters for most consumer lifestyles and budgets.
However, Ikea is countering its main weakness with its key opportunity, which is expansion into emerging markets in Asia and Eastern Europe. The development of premium lines, whether within existing stores or through new high street fascias complementing the out-of-town stores, and an increase of sales via the development of e-commerce sites in each country, are both improving customer service, and reducing the volume demand on existing stores.
Unfortunately, these extra developments are driving the threat of a possible over saturation of the market, increased by the fact that competitors are following suit, by introducing similar product ranges at low prices.
This is compounded by the negative impact on sales of continued depressed economic conditions in its core European market as well as the adverse effect of a weak dollar on sales in the US, and the political and economic instability of the Chinese and Russian markets, in which the company plans to invest heavily in the short-mid term, also presents a potential threat.
Johnson, Scholes and Whittington, Conclusion A steady development of the Ikea retail business appears to be the focus for the company in the near future, with strategies unlikely to include aggressive expansion into new areas, but rather building and developing in old.
Ikea United Kingdom, However, some changes may be seen with the development of e-commerce, which in the long term, this may have detrimental effects on the revenue of bricks and mortar Ikea stores, but positive effects on turnover for the company as a whole, and thus is the main example of how the company is aligning itself to address the key threat to its traditional stores.
Consumers may find Internet shopping preferable, as the Ikea reputation means that they are already assured of the quality and craftsmanship of Ikea products, which is opposed to the present belief of Ikea that customers should be able to feel and check the quality of products before purchase.
Ikea has also adopted an aggressive expansion-based strategy over the last few years, although the weakness of the external consumer market means that sales growth over the next few years should remain relatively modest.
An upturn in economic conditions in Europe and the US, and the continued development of business in China, Japan and Russia should lead to acceleration in growth fromwith year on year growth predicted to reach double figures. Ikea United Kingdom, The development of e-commerce, making shopping at Ikea more accessible, may also have a positive impact on sales, although no progress has been visible on this front of late, and as such Ikea has been very guarded over its profit levels.
However, profit margins may fall in the short term as result of the expansion into existing and new emerging markets, with the company facing high set up costs and low spending power, as well as several other external issues in developing markets.
The company has already faced a number of bureaucratic obstacles in Russia and further hurdles cannot be ruled out, with similar problems potentially arising in China.Swot Analysis of Ikea. SWOT ANALYSIS OF IKEA IKEA is amongst the biggest retailers of furniture in the world - Swot Analysis of Ikea introduction.
Would you believe that the business sells more than 10, furnishing products from well over stores in around 40 countries. Free business studies papers, essays, and research papers. and under his wings shalt thou trust: his truth shall be thy shield and buckler.
The differentiation and cost leadership strategies seek competitive advantage in a broad range of market or industry segments. By contrast, the differentiation focus and cost focus strategies are adopted in a narrow market or industry. IKEA SWOT analysis. Strengths. Weaknesses. 1. Customer knowledge. 2. Constantly using innovations to drive costs down. 3. Supply chain integration. 4. Brand reputation and market presence Related Essay. QAM 11E Chapter 16 Answer at the bottom of the [ ] FC Which one of the following is the type [ ]. IKEA Swot Analysis Essay Sample. 1. Customer knowledge. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The company understands the purchasing factors that influence customers to buy and implements the best practices to induce that decision. IKEA offers low prices and a huge range of products.
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Ikea Swot Ikea group is a private group engaged in the business of retail home furniture and other housewares. INGKA Holding BV is the parent company of Ikea group companies, including the industrial group Swedwood, which manufactures Ikea furniture.
Published: Mon, 5 Dec Introduction. Every industry tries to use an unparalleled, efficient, and effective business strategy that will allow them to remain at a progressive position in the competitive market, especially in the global market.