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Value Chain Management of Ikea

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Value Chain Management of Ikea
IKEA
Purchasing Strategy

Jerry, Yeung Siu Hang

TABLE OF CONTENTS

1. EXECUTIVE SUMMARY

2. INTRODUCTION …………………………………………………………………………………………………… 1. Company Background & History 2. Company overview 3. Vision and Mission 4. Key Objective to build an efficient purchasing system to maximize the profit margin

3. Related Background…………………………………………………………………………………………….

1. What is the definition of purchasing Management 2. What is the definition of Purchasing Management in retail industry 3. What is Purchasing Strategy in IKEA a) Global Sourcing b) IWAY Concept 3.2.1 .Analysis of Generic competitive strategies In IKEA 3.2.2. Cost Leadership 3.2.3. Differentiation 3.2.4. Focus 3.3 Value that IKEA creates to Customers 3.4 Competitors Analysis 3.4.1. Cost Control 3.4.2. Quality Management 3.4.3. Purchasing Strategy 3.4.4. Comfortable shopping Environment

4. Customer impact on IKEA purchasing strategy (PEST)------------------------------------------------------------ 1. Political 2. Economical 3. Social 4. Technological

5. Business progress impact on purchasing strategy-------------------------------------------------------------------- 5.1.1 Definition of Business process 5.1.2. Business process of IKEA 5.1.2.1 – Set up of IKEA retail stores 5.1.2.2 – Business process impact on purchasing strategy a) Retail store Level b) Purchasing level

6. Conclusion---------------------------------------------------------------------------------------------------------------------------------

1. EXECUTIVE SUMMARY

This report is to analysis IKEA purchasing Strategy that through the study of its business model, Analyze of its Global sourcing strategy, Generic competitive Strategy, competitor analysis. It attempts to find out what are the keynotes of its successful as well the challenges that



References: 2) (Swedish)". IKEA.com. 2008-03-09. http://www.ikea.com/ms/sv_SE/about_ikea/facts_and_figures/ikea_group_stores/index.html. Retrieved 2010-12-26 3) IKEA Sustainability Report 2010 6) Lieven Quintens a, Pieter Pauwels a, Paul Matthyssens b,c 2006, Journal of purchasing & supply Management 12 (2006) 170-181, Global purchasing : State of the art and research directions, viewed May 30, 2011. 7) John Fernie, Leigh Sparks, (2004) Logistics and Retail Management, 2nd edition, London : Kogan page, viewed May 30, 2011 page 48-9 8) Johanson and Vahlne, 1977 11) Leif Enarsson, (2006) Future Logistics Challenges, Demark : Copenhagen Business School Press, viewed May 30, 2011 page 80 12) R 15) www.IKEA.com view May 15 16) Michael Porter, (1985) Competitive Advantage : creating and sustaining superior performance, New York : Simon & Schuster, viewed May 30, 2011 page 15

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