Strategic analysis of IKEA Essay Example | Topics and Well Written Essays - 4500 words

Strategic analysis of IKEA - assay Exampleplistic style matches also the no-frills product lines and customer service ethos and chimes with the companys origins as a small Swedish family business which started in 1958. In reality, however, the company has a sophisticated advance to its business, and this is built on a suite of interlocking strategies. This paper will consider five of these in turn Alliances/Agreements, Human Resource Factors, Knowledge Management and Competencies, Cultural and Strategic Fitness, and finally Environment/ sensitiveness issues and analyse the appropriateness and effectiveness of each.IKEAs phenomenal success in expanding from Europe to America and Asia could non have happened without a network of well-chosen alliances and long term business relationships with suppliers, manufacturers and logistics operators. Planning of supply and pauperization across the whole operation is done centrally with the aid of computerized APS (advanced planning systems) and this requires advance agreements on volumes and capacities for twain IKEA and the different suppliers. (Jonsson et al, 2008, p. 99). The aim of this approach is to make optimal use of resources throughout the whole chain and to play down stock levels. Where possible, and when quality control act upones are in place at the required level, suppliers are level(p) into a system of direct delivery to the point of sale. Johnsson et al. identify four main enablers for this planning process planning organisation, data quality, software support and project and change management (Jonsson et al, 2008, p. 100). The last of these entails significant period and resources spent by IKEA managers out in the field IKEA has over time struggled with achieving consistent result from its carrying out efforts A Four-Step model has been defined clearly recognizing the need to piss awareness in the first step, create interest in what is coming in the second step, making users try out the solution in the third step and finally adopt