The paper "Dealing with Complexity in the Supply Chain - IKEA" is an outstanding example of a business assignment, The vision statement of IKEA “ To Create a better everyday life for the many people” is not only Directional, Clear, Relevant, Value-Based but it is also Purpose-Driven. Trading in today’ s competitive business environment necessitates that a business entity is not only considerate of itself but also the players that contribute to its existence (IKEA). IKEA's vision statement has taken care of this paramount idea. The statement creating a better life for the many people involves taking care of the suppliers, the consumers, and the environment in general.
IKEA takes care of the customers by ensuring that the cost of production is reduced which in the end leads to reduced market prices for the commodities. Similarly, IKEA takes care of the suppliers by ensuring that they train suppliers on how to meet IWAY standards and be compliant, by creating a network of Trading Service Offices. On the part of environmental maintenance, IKEA makes sure that waste emissions to the air are reduced, chemicals are handled safely, and that dangerous material is also disposed of safely.
The IKEAS vision statement is therefore all-rounded (IKEA). The essence of the development of a vision statement is to motivate the business to achieve its set objectives. Organizational success is defined by the extent to which objectives have been achieved. IKEA is motivated towards achieving its objectives by ensuring that all players in the cycle have been catered for. Customer feedback is embraced and supplier standards are ensured hence acting as an inspiration towards achievement objectives (IKEA). Question Two Relate IKEA’ s market positioning in terms of a supplier-buyer relationship. The IKEA‘ s market placement statement “ Your partner in better living.
We do our part, you do yours. Together we save money” sets eyes on dedication to product design, consumer value, and consumer inclined solutions. IKEA is constantly near its suppliers, which is restricted to making great business relations between the organizations included. This closeness to suppliers is important to IKEA in undertaking close monitoring and ensuring that quality products are produced and most importantly, customer feedback is taken into consideration and possibly implemented. Similarly, IKEA is located close to customers in order to ensure that the cost of transportation is reduced and in the long run, the price of the commodities is affordable to the customer as a result of the reduced cost of transportation.
In fact, to reduce the cost of production, IKEA has chosen to use a flat form of packaging where clients collect the items at home (IKEA). Question Three IKEA’ s chain of supply is really complex. Justify this statement. Everything is created by IKEA of Sweden, which is additionally in charge of giving every item its extraordinary name, for example, BILLY and KLIPPAN.
The organization plans its particular furniture manufactured by close to 1,220 suppliers in more than 55 nations. IKEA has 31 exchanging organizations’ working environments in 26 nations so generations can be observed, new thoughts tried, costs arranged and what's more, quality checked while an eye is continued on social and working Conditions (IKEA). IKEA's stores are served from a focal point in spite of the fact that stores are spread in close to 55 nations. Now and again, an IKEA store opening is a national occasion, with individuals here and there making a trip several kilometers to shop there.
This, therefore, makes IKEA’ s supply chain complex because of many players involved (IKEA).
IKEA. International Supply Chain Management – BSB20123-7. 14.4.2016 http://www.staffs.ac.uk/schools/business/resits/postgrad/InternationalSupplyChainMgmtIKEACaseStudy.pdf
Serdarasan, Seyda, and Mehmet Tanyas. “Dealing with Complexity in the Supply Chain: The Effect of Supply Chain Management Initiatives.” SSRN Electronic Journal (2012), p. 1-25. Web.