Iibm Case Study 2nd Semester

Topics: IKEA, IKEA Catalogue, Customer service Pages: 7 (2086 words) Published: March 10, 2013

Q-1) What do you recommened?should the company implement one of the new technologies?why or why not?


Since this is a hypothetical question, it becomes logical and fair to argue that more detail is needed in order to make a responsible decision. I cannot see a reasonable answer offered with the lack of detail present. For example, what is the financial state of the company? What does the company do in order to understand the need for technology? What is the "the new technologies" being considered? How are the competitors of the company appropriating technology? Is the company local or global? What is the mission statement of the company and how does technology fit into this? Would this be the first foray into technology, or is this simply an upgrade? These are just a few of the questions generated from this topic.

Technology integration into any business is important. Yet, like everything else, it is an expenditure that has to be integrated itself into other elements present in the business' scope and understanding. Without this frame of reference present, technology integration cannot effectively contribute to the success of the company.

Q-2) an operations analyst suggested that company employees shared a dump on the clerks mentality?


This mentality refers to the idea that the company loads the most amount of work on the lowest rank of employees. It refers to the idea that the employees with the least amount of power in an organization face the greatest amount of work; institutional barriers to alleviation of their condition; as well as face the greatest amount of disrespect. The notion of "dumping on the clerks" helps to bring to light the silenced condition of many in the specific organization. When company employees feel this, it can profoundly impact morale and the climate of the workplace. Those in the position of power should heed such an assessment for many reasons. Staff burnout and turnover in an atmosphere that "dumps on the clerks" is high and those who do remain foster a great deal of negativity towards their authority figures as well as towards the company or organization, in general.

Strategic Management

Q-1) 1. Do you think that IKEA has been successful to utilize Porter’s Five force analysis? Give reasons.
2. Where do you think can IKEA improve?

What are the factors for the success of IKEA?

The factors for success of IKEA can be attributed to many different philosophies woven within IKEA. One thing IKEA always focuses on is seeking to balance cost-effective labor with the company’s product quality standards. To save money on labor and production, IKEA constantly is on the lookout for opportunities to build supplier relationships in developing countries. IKEA also made it so all furniture was designed to ship disassembled, and all of the products were transported flat. The flat packaging not only makes it easier for customers to transport furniture home, it also saves the company on shipping. IKEA also focuses on design or the products it sells. The company’s corporate slogan, “Low price with meaning,” captures their commitment to offering tasteful, cleverly designed products that do not always make the customers feel cheap. The IKEA shopping process has also been referred to as immensely appealing by customers. Upon entry shoppers are gently guided into a predetermined path through model bedrooms, kitchens, living rooms, and bathrooms. The atmosphere is always bright and inviting. IKEA stores include childcare centers and restaurants. All of theses amenities allow the customer to feel more comfortable and contribute to the success of IKEA. What do you think of the company’s product strategy and product range? Do you agree with

the matrix approach described in Figure B of the case?

I agree with the current product strategy being used by IKEA to evaluate its product...
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