The paper "IKEA Mission and Vision, Strategies" is a great example of a business assignment. IKEA is a company that provides home furnishing in more than 30 countries with over 231 stores worldwide. IKEA is one of the world’ s top brands ranked by Interbrand at 44 in the list of 100 top brands. Since its foundation in Sweden IKEA has run one of the World’ s most successful furniture retail operation. Following its success in Sweden, the company expanded its operation first to Europe and later to Asia, Oceania and North America. IKEA total group revenues have been on the rise since 2001 when it recorded 10.4 billion Euros to the current 23.5 and 27.2 billion Euros in 2010 and 2011 respectively.
This paper analyzes the organizational aspects that underpin IKEA global success by evaluating the company’ s Mission and Vision, its growth strategy its competitive advantage strategy and finally presents a SWOT analysis of IKEAs International operations. Question 1: Following your understanding of a vision evaluate the vision of IKEA in this case study IKEA Vision company vision for its customers is as follows: ‘ to create a better everyday life for the many people’ .
In the case study, IKEA is upholding its vision of enabling as many people as possible have access to affordable furniture. This is being achieved by expanding to new markets, keeping the prices low and by ensuring its response to the need of customers in every regional segment it operates in. IKEA international expansion is in line with its vision of making people’ s lives better; in every nation, it expands to it has a significant effect on the lives of the residents.
After making sure most of the residents in its Swedish home market could access an IKEA store, the company opened branches in neighbouring Scandinavian countries including Denmark and Norway. Later, it started offering its home furniture in Switzerland. Even today IKEA tries to make it's quality affordable furniture available to more people all over the world by sustaining an expansion strategy where they expand into a new country every year. Secondly, IKEA has stayed true to its vision by keeping its furniture prices affordable to most individual. IKEA achieves this by sourcing its products from countries where the cost of production is low.
IKEA also has a large number of suppliers that can easily access their stores to keep costs down in over sixty different countries (IKEA 2011b). IKEA also makes sure people access information about their products so as many people as possible can make the right purchasing decision when buying their furniture IKEA distributes over 160 million catalogues every year indicating their intent at reaching every possible customer with their marketing communication (IKEA 2011a). IKEA also has a corporate social responsibility campaign that strives to provide better lives to destitute children.
IKEA is an active contributor to UNICEF’ s save the children fund; IKEA has raised over 16.7 million Euros for the initiative through a fraction of its soft toy sales (UNICEF 2009). However, IKEA has been criticized for only giving a tiny sum of its profits to charity a factor that shows conflict with its vision when it comes to making the lives of individuals who are not well off.
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