Business Report

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Ikea Milestones

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http://inter.ikea.com/en/about-us/milestones/#y2000

Inter IKEA Systems B.V, owner of the IKEA Concept and the worldwide IKEA franchisor, refined the structure to develop better conditions for increased customer focus and future expansions. With a passion for retailing and strong entrepreneurial spirit, there are now 12 different company groups under the franchise. IKANO group franchised to Singapore, opening its first store in Singapore in 1978 at Sixth Avenue and the second in 2006.

http://franchisor.ikea.com/worldwide-ikea-franchisor/

http://franchisor.ikea.com/ikea-franchisees/

consumers aware of environmental issues and are very keen on improving their lifestyles while staying hip by using stylish products

While organisational establishment, as a whole, is considered as no barrier to IKEA, dynamic competition, economic uncertainties and customer preference could pose a challenge and thus, constant innovation, research and development is required.

1.2 Business Strategy

Business Strategy is developed by aligning its core competencies with opportunities in the market (Grant, 2002). IKEA vision of creating a better everyday life for the many people guides Ikea in every aspect of their business to go beyond home furnishing.

IKEA‘s success in the retail furniture industry can be attributed to its cast experience in the retail market and its ability to integrate both product differentiation and cost leadership strategies successfully.

Grant, Robert M., (2002) Contemporary Strategy Analysis:: COncepts, Techniques, Applications, 4th edn., Basil Blackwater Publishers, USA

1.3 Competitive Advantage

IKEA sustain business competitive advantage by adopting a hybrid strategy of both cost leadership and differentiation strategy. Since the ethos of IKEA is to make quality products at affordable prices, the company has succeeded in offering products at low prices compared to their competitors such as Crate & Barrel, Harvey Norman and Muji. IKEA differentiates itself by the brand and its innovative products thus, being unique industry wide.

Baroto, M. B., Abdullah, M. M. B., & Wan, H. L. (2012). Hybrid strategy: a new strategy for competitive advantage. International Journal of Business and Management, 7(20), 120.

https://www.linkedin.com/pulse/ikea-case-study-strategic-management-gaining-context-stavroula

1.4 Key Success Factors (KSF)

The following key success factors are critical to IKEA in meeting its strategic objectives:

Link KSF to organisational strategy and performance measures.

As a

2.0 ORGANISATIONAL STRUCTURE

Inter IKEA Group is decentralised and is organised into 3 division mainly, Franchise, Property and Finance.

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2.1 Type of decentralisation

Ikea Singapore operates with a decentralised, business-work unit organisation structure

2.2 Responsibility Centre

Cost centre for HR department

Profit Centre for Sales department

Investment centre for

Revenue centre for Sales department

3.0 LITERATURE REVIEW

Definition of environmental responsibility, how it fits in the industry of your company operating in. how does it differentiates from its competitors

Ikea is a pioneer in sustainability.

IKEA discloses itself as a sensitive and caring corporation, engaged in a continual effort to improve

4.0 PERFORMANCE MEASUREMENT SYSTEM & REWARDS

A total compensation framework was developed and implemented to retain experienced and dedicated personnel and at the same time attract high-valued talents. The principles of the framework ensure that remuneration and benefits are market-competitive and good performance is recognised and rewarded accordingly. A structured approach towards employee development has also been introduced to…

Senior management measures

4.1 An Overview

4.2 Critical Analysis of the Performance Measurement Reward System

Is it appropriate? Is it short term or long term?

Financial or non-financial?

Subjective or objective?

Internal or external?

5.0 RECOMMENDATIONS

People are opting for a simpler lifestyle which their competitor Muji is working towards. Muji focuses on the emotional experience in store

Ordering online as

6.0 CONCLUSION

7.0 APPENDIXES

8.0 Bibliography

- Bezen (January 2015). Ikea is The Worlds Largest Furniture Retailer Marketing Essay. Retrieved 7 September 2017, https://www.bezern.com/read-power-141807.htm>

- Essays, UK. (November 2013). Ikea Is The Worlds Largest Furniture Retailer Marketing Essay. Retrieved 7 September 2017, https://www.ukessays.com/essays/marketing/ikea-is-the-worlds-largest-furniture-retailer-marketing-essay.php?cref=1>

- Baroto, M. B., Abdullah, M. M. B., & Wan, H. L. (2012). Hybrid strategy: a new strategy for competitive advantage. International