IKEA FURNITURE COMPANY QATAR IKEA FURNITURE COMPANY QATAR IKEA it is a company which was established in the year 1983 and its main focus was to grasp the IKEA concept and actualize it to the required business model of the now IKEA concept. The owner of the concept and worldwide franchise is CEO. The branch focused on franchising is responsible for retailing IKEA products to other franchisees in different market scenarios. The main or maternal company is the Inter IKEA holding S. A its headquarters is based in Luxembourg. The main focus of the company is to ensure the consistent secure and improved concept for the long run or the period of existence of the company.
To make the vision happen investments have to be made whether there is a case of recession or business is good. The company envisions being independent financially. This project will focus on the branch in Qatar and the bed sales. The IKEA group of companies is a large collection of franchises renown worldwide. There are 28 dispatching centers, 11 customer dispatch centers located in 16 countries. The sole focus of IKEA is selling and designing furniture (sofas, chairs, beds and tables).
The company was identified as the world’s leading and trendsetter in the furniture retailing. IKEA, Qatar branch (Dohar Festival City) was unveiled in the year 2013 March to be specific, this was however due hitches which made there be occurrence in delays (Augustine, 2011). The companies in Qatar are partly owned by the Gulf Cooperation council, The Doha Festival City branch is operated by a group known asthe Al-Futtaim. The furniture sold is packaged by using flat packs, means of transportation include sea, rail which are cost effective and are environment friendly(Alta, 1998) The method of assembly used is usually self-assembly (efficient and convenient) in comparison to other companies which use the pre-assembly method to convey the furniture.
The main reason behind this style is that capital used in shipping, transportation and packaging is minimized and it is much easier transporting the furniture in flat packed crates. The products are sophisticated in design and are up to date in terms of structure (Alta, 1998).
The names of furniture are usually one-worded and they originate from Scandinavia, a specialized nomenclature system is adapted when it comes to naming it was developed by company founder Kamprad who has dyslexia. There is a wide variety of bedroom material ranging from mattresses, bathroom mirrors, bed frames, and bedroom storage. The main focus of this project will solely rely on the bed sales. Bed sales made have been made but they do not match up with the numbers required by customers or delivery date is clearly stated in the case of shipping.
The IKEA Qatar branch does not inspect and perform inventory checks that help one detect whether the business will run smoothly in case of large quantities ordered, there will be snarl-ups when it comes to the procurement of fresh stock. Another major area of concern is the Qatar branch does not state the expected date of delivery of one’s cargo this is a bad business practice, the people purchasing beds from the company should be able to know when their cargo will arrive to prevent inconveniences in both parties. Circumstantial evidence is provided below; the data indicated shows that the reorder point must be calculated to help determine when to restock or when not to an example of the case scenario will be if annual demand is 10000 beds per year and 311 working days per year the lead time is 20 days, determine the reorder points for beds. Reorder Point = (Lead Time + Safety Stock + Basic Stock) * Unit Sales Per Day Demand= units per yr/ no of days Units per year= 1000 No of days = 311 10000/311=32 Units Reorder Point= Demand * Lead Time in days 32 Units per day * 20 = 640 Units References Alta. (1998).
Ikea Furniture Company, Qatar. (1998). Blackburn South, Victoria, Qatar: ALTA Metallurgical Services. Augustine. (2011), Ikea Furniture Company, Western Qatar. W. Aust. : The Conference. Inter IKEA Systems B. V. (2015). Retrieved from http: //franchisor. ikea. com/worldwide-ikea-franchisor/ Western Qatar. (2008). Ikea Furniture Company 9-12 September 2008: program and papers. Canning Bridge, W.A. : Primacy Conventions Pty Ltd.