The paper "Business Analysis of IKEA Company" is an outstanding example of a business case study. This essay seeks to conduct a case study on the IKEA company. There are various parameters of this company that will be highlighted in this paper. These are Internal Environment Analysis broken down into facets such as investigation of the firm’ s resources, capabilities, core competencies, value chain activities, financial condition, current strategies and objectives. IKEA is a multinational corporation with branches extending into major countries and cities in the world (IKEA website, 2013). IKEA- Brief company profile IKEA stands for Ingvar Kamprad, Elmtaryd and Agunnaryd.
The first two initials IK standing for Ingvar Kamprad represent the name of the founder of the company. The other two represent the farm and the hometown he grew in respectively. Ingvar Kamprad founded IKEA in the year 1943 in Sweden, his home country. Since then, the company has grown in leaps and bounds to have over 330 stores in more than 38 nations across the globe (IKEA website, 2013). The expansion of this company into the overseas market has amassed a fortune for the company and a personal fortune for the founder, Ingvar Kamprad, making him be recognized as one of the wealthiest men in the world. IKEA resources The company has grown over to amass quite a considerable amount of resources from their humble beginnings in a farm in Sweden.
Now the company has become a brand name and its products are found in many stores across the globe. Being able to maintain a sense of consistency to grow a company from nothing into a brand requires a lot of resilience (Boyatzis & Soler, 2012). The resources of a company are divided into two sections; the human and the capital resources and both must be in cohesion to ensure that the goals of the company are achieved (Vroom & Gimeno, 2007).
These are tangible and intangible resources. IKEA has an abundance of both human as well as capital resources. On the human capital frontier, the intangible resource, the company boasts of an employee base of over 139000 by the year 2012 (IKEA website, 2013). It had over 29 billion Euros as total equity by the same year with the total assets clocking over 44 billion Euros.
Most of these resources are used to expand into new markets and as working capital for the giant corporation. The workers of the company by region have been distributed as follows: Europe: 99,000, North America: 18,000, Asia & Australia: 11,000 and Russia: 11,000. On the tangible resources part, the company boasts of equity of over 29 billion Euros. This gives the company enough capital to run the company, expand and explore new grounds. The full run of the financial power of this company has been analysed in a later section in this paper. IKEA capabilities A firm’ s capabilities are measured by the capacity of the firm to make more money (Oosten, 2006, p. 710).
In other words, this is the measure of how solid the company is based on financial strength. The company has two core and well-recognized capabilities; financial power is one of these capabilities. The company has enough money to take care of its strategic plans, expand into new markets and explore new ideas. Financial might is always a key capability for companies wishing to bring their strategic plan and objectives to fulfillment.