Unit Number and Title| 7. Business Strategy |
Start Date| 14/10/2012|
Assignment Due Date | 18/10/2012|
Assessor Name | Ms. Lynette Hatley|
Assignment No | 2|
Assignment Title | Formulate a New Strategy |
Assignment Brief| This assignment gives the learners’ the opportunity to produce an organizational audit for a given organisation and to carry out an environmental audit for a given organization|
Assignment Task / Description:
QUESTION1(LO2, Assessment criteria 2.1 and 2.2)
Read the case study on IKEA and then answer these questions.
A. Conduct a SWOT analysis on IKEA using a SWOT Analysis Chart
Stunities available in market and byminimizing its threats.
* retain a strong identity in the market.
IKEA is a well-known global brand in home furnishing with hundreds of stores across the world. It assess its external and internal environment,which reveals its strength, weakness, key opportunities it can takeadvantage of and threats it must deal with. IKEA responds to bothinternal and external issues in a proactive and dynamic manner byusing its strengths and reducing its weaknesses.IKEA·spassioncombines design, low prices, economical use of resources, andresponsibility for people and the environment. Through this, IKEA isable to generate the strong growth it needs to retain a strong identityin the market.IKEA has discovered a business truth ²Being sustainable and responsible is not just good for customers andthe planet, it is also good for business.
Concentrate on urban areas, where apartments are smaller and the
population more transient
Concentrate on university areas with the budget-focused students 、
first time homeowners and new immigrants . low cost products of awide variety, that meet the needs of their modern lifestyle
Better to use a younger target market strategy to build customerloyalty to the brand, they are fun to be with ,they like DIY and theyhave an active lifestyle.
Internet ads, since that is likely the main communication vehicle forthe target demographic in Winnipeg.
Continue clever advertising to create demand. We are going tochoose a strong media mix including television, outdoor and onlinewebsites specific to our target market.
C. What is IKEA doing to address its strengths? (how using strength)
IKEA has the strong brand image: By the recent research IKEA ranked 41st among the best global brands and The strong brands enhance customer loyalty around the world . IKEA has the own industrial group: which produces wood-based furniture and wooden components. IKEA can have efficient productions which enable it to maximize productivity and minimize waste-generation. Marketing Strategy:
Stylish products at massmarket pricing
Value-added services: installment, daycare,restaurants, etc. * a growing demand for greener products
* a growing demand for low priced products. Trends in the current financial climate may result in consumers trading down from more expensive stores * demand for reduced water usage and lower carbon footprints. IKEA has a number of areas of focus to its work with sustainability, each of which it supports in various ways: 1. Solutions for a sustainable life at home IKEA gives online tips and ideas for this. 2. Sustainable use of resources. IKEA aims for zero waste to landfill, wastewater treatment and programmes to reduce its use of water. 3. Reducing carbon footprint. IKEA aims to reduce energy use, use more renewable energy, cut its use of air transport and reduce packaging. Its green transport initiative includes an aim to reduce business flights by 20% in 2010 and 60% by 2015. 4. Developing social responsibility. IKEA's policy includes support for charities such as the World Wildlife Fund, UNICEF and Save the Children. 5. Being open with all its stakeholders. This involves building trust through good communication...