Management and organizations
IBMS 1st year
This assignment had to be written for the class of Management and Organizations at Stenden University, course IBMS, first year. We had a group of 6 and had to work it out together. We were enjoying getting into the world of IKEA, the world’s most furniture store on the market.
IKEA is an abbreviation of Ingvar Kamprad Elmtaryd Agunnaryd. The initials come from the name of the founder, the farm where he grew up and his home parish. The firm has grown rapidly since it was founded in 1948.
There are stores not only in Europe but also in North America, Middle East, and Caribbean and Asia- all are 253 stores in 24 countries, but 32 from all are owned and run by franchising. IKEA stores include restaurants and cafés, serving typical Swedish food. At the moment, this is the largest furniture generator in the world, recognized for its Scandinavian style.
IKEA’s mission is to offer a wide range of products with a high degree of quality and offer them for a low price to reach as many potential customers as possible. The goals of IKEA is to be as sustainable and environmentally conscious as possible. They have a number of ways to do this.
IKEA’s core competence is their production costs as low as possible. This is brings them to a cost leadership position which the competitors can’t match. IKEA’s synergy is between their product designers, customers and IKEA. The product designers design furniture for IKEA to sell, with a budget limit, entailing to customer needs. IKEA receives those ideas and the parts are being produced and sold by IKEA. IKEA creates value for their customers by producing products that entails to customer’s needs.
As for the strengths of the company, IKEA have a strong internationally known brand with loyal customers. IKEA offers high quality products for a low price. The IKEA business model is unique because it absorbs its... [continues]
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