Report of IKEA Background & Strategy
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In order to understand the environment, every organization includes a various system of activities and behaviours. In addition to this, it helps to enable human and their machines to accomplish goals and objectives of the enterprise (Hooper-Greenhill, 2013). It also joint functions of human characteristics and nature of the task environment which consist in environment of the firm. Present report is based on IKEA which operate their functions Austria marketplace. Now they want to expand their market in Austria workplace. In respect to this, they can use strategy to enter in new place of cited country. They offer services through online and offline stores through customers can access according to their convenience (Wang, Solloway and Busemeyer, 2014). In this report covers, report should be focused around the cited firm. In addition to this, report covers confirmation of the country and organization's feature which create major impact on the businesses.
Assessment of the business environment prevailing in Austria marketplace
IKEA group is the largest global retailer of furniture. They offer their products in online and offline both stores. In addtion to this, Austria is the most popular market which conduct activities for farmers, flea and potters. They offer most preferable brand of furniture in the world. Austria is developed country which has stable and strong performing economy (Kirst-Ashman and Hull Jr, 2014). In addition to this, their economic resilience and sustained growth provide an attractive, safe and low-risk environment to IKEA. Thus, organization can perform their functions in a systematic manner. The business can expand their operations through providing their products at different places. In respect to this, they can make new products in term of expanding products in movable furniture (Wynn, 2013). With the help of this, organization can produce goods which can be carry from one place to another without facing any difficulties. In this criteria they have enough capital to attract potential customers at global place (Bickmore, 2013). Along with this, Austria has a strong political and financial system which has low public debt and low unemployment. Beside this, Austrian market support to the cited firm because in the nation there high-skilled workers available and workforce is diverse. Therefore, Austrian economy is supported by long standing and healthy political system of the country (Taylor, McNicholas and Reed, 2014). Further, the government of Austria provides a framework which ensures trading of chosen business is fair for consumers. The framework is administrated and enforce by the Austrian Competition and Consumer Commission (ACCC).
Austrian Consumer Law (ACL) also made by the government which provide regulations on unfair contract terms, consumer rights guarantees and penalties. In this term, government protect to the customers from the operations of IKEA functions. In addition to this, Product liability regulation regulate by the national statutory framework of Austria marketplace (Tomlinson and Fai, 2013). In this chosen enterprise follows safety and information standards related to products. These standards designed to ensure harmful products are not marketed in the Austrian marketplace.
Background of the Business
IKEA is business which sale their five-star furniture in the whole world. The company started its business to sell furniture in 1943. Their first Mobel-IKEA store is established in Almhult, Smaland in 1958 which is known as Mobel means “furniture” in Swedish. Outside Sweden, the store is opened in Norway (1963) and Denmark (1969). From the starting time IKEA has taken a different path through they decide to sell products throughout the world. This is because people have different perception, needs and tastes (Hooper-Greenhill, 2013). Thus, those people who want to improve their home and creating better everyday life, IKEA is help to offer a wide range of products and services in the world. In this context, they combine good design, function and home furnishing in IKEA stores. The business started selling their products at very low prices.
IKEA is the major international business in the whole world which provide furniture, home furnishing and housewares. In respect to this, company design their products by their own way (Taylor, McNicholas and Reed, 2014). Their main stores around the world established more than 140 that are spread approximately in 30 different countries. They mainly offer their products through mail-order, surrounding the stores locations.
Information to plan the Business Organization
In order to expand the business in various parts of the nation, IKEA mainly concerns with many stores which are established in Sweden, Germany, Belgium and Netherlands. Now they considered their possible expansion which are linked with trends in birth rates, new housing started and the age structure of the population. (Hooper-Greenhill, 2013) In addition to this, they also expand their market in other countries through they can enhance their profits easily. In respect to this, they use precious environmental resources such as forests, lakes and mountains. Along with this, company also make practices of being environmental friendly. In this context, they save their money in the production case through making less cost products. In this, company also reduced amount of cardboard packaging material used by the organization (Kirst-Ashman and Hull Jr, 2014). Company websites challenge to customers to search for new and economical uses of precious environmental resources such as air, river and many more things.
Before making the business plan for IKEA marketplace, business need to establish aspects on such fundamental elements. In respect to this, they can plan to considered time frame within the business. In addition to this, business need to analysis planning criteria and need for business plan. In respect to this, they will easily demonstrate various things which can be competing within the organization (Bickmore, 2013). In respect to this, organization can also determine their goals and objectives with considering operations of the company. In this aspect cited business have need to make sure effective plan through making effective marketing within the enterprise.
Further, business can select criteria to select appropriate strategy within the updating business plan. In this aspect, organization can enhance their businesses plan with the help of business strategies (Kirst-Ashman and Hull Jr, 2014).
Background of Austria
Austria is highly developed country which has high level of economy and prosperity. In respect to this, global trade and investment has been placed which support to the every business of country. In addition to this, cited nation has also strong tradition to making reliable protection of prosperity rights. Further, country has transparent legal system which contribute effective measurement in the organization with measuring effective goals (Wang, Solloway and Busemeyer, 2014).
Business environment in IKEA
IKEA has strong business environment which consist monopolistic competition in the marketplace. In this context, their industry has lot different furniture stores in that they can compete with others. The cited firm has high degree of market power which is beneficial for Austria marketplace. Along with this, business has various products' differentiation. The company also considered flat packing which save shipping costs and reduce labour & stores costs (Bickmore, 2013). In respect to this, enterprise offer their customers lower competitive pricing. In this context, company adopt new market structure through pricing, Tweaked and location strategy.
Plan to make a business organization successful
In order to carry business plan, IKEA can apply Porter's five forces model which consist different elements. In these regards, organization has threats of major components such as pricing decisions, ability to supply, cheaper price and make products be different from existing (Hooper-Greenhill, 2013). In this context, following aspects can be considered:
Bargaining power of customers: In Austria market has very strong affects on IKEA businesses. In this aspect, organization considered intense competition in cited marketplace. In addition to this, customers has wide choice in global and local marketplace. Thus, major effects of this power, organization can improved relationship with their customers. As results, customers has positive response such as better life every day and they are not alone to operate functions in the marketplace (Tomlinson and Fai, 2013).
Bargaining power of suppliers: In the term of bargaining power of suppliers, cited firm do not posses substantial bargaining power within the environment. In respect to this, cited firm also pursue strategy through IKEA can form strategy to make long term relationship with their suppliers. Main effects of this is it can be helpful to cited firm as they can make effective transactions within the businesses. In addition to this, main response of this is creates distribution and purchasing and close with suppliers (Kirst-Ashman and Hull Jr, 2014). As results, cited firm can maintain their transactions in effective manner within the business operations.
Further, organization can also use PESTLE and cultural environments through they can operate functions in Austria marketplace. In this context following aspects can be uses to make effective environment:
Sociological Environment: Corporate and social responsibility program consist of effective role in the IKEA. In respect t to this, in sociological social trends and Swedish lifestyles considered (Bickmore, 2013).
Technological Environment: in respect to this, the organization mainly use business tools, customer services and grown in the websites. In this context, cited firm can make decisions regarding technology services. As results, a business can adopt various functions related with goals of the firm (Morris, Kuratko and Spivack, 2012).
Environmental Concern: In respect to this, in IKEA marketplace sensitive environment take place in which business use raw material and energy to produce their products (Hooper-Greenhill, 2013).
The Cultural Environment of IKEA: In terms of cultural environment of IKEA market, organization follow low power distance and femininity. In respect to this, business can share vision throughout the world with build relationship with co-workers. It will assist to balancing responsibility and freedom with making good leader in the business. In respect to this leader must be good listener (Kirst-Ashman and Hull Jr, 2014).
Hence, it will help to develop global organization to IKEA in Austria marketplace. In respect to this, company can capture the market in various part of the world. As results, it will assist to keep strong player by making investment in the country. In addition to this, it will also helpful to make more profits for the organization. Thus, company has strong cultural environment (Taylor, McNicholas and Reed, 2014). Further, Porter's five forces model help to develop transaction with customers and suppliers as well. In respect to this, business can easily maintain their relation with suppliers through making effective participation in the business. As results, they can easily monitor on the performance of the company and make it very effective. Along with this, business will able to demonstrate plan with the help of making effective parameter in the enterprise. It will assist to make well and good transaction within the environment of company (Tomlinson and Fai, 2013).
Data/ graphs for IKEA marketplace
IKEA also operating their monopolistic market in Austria in which they grew bigger. They increasing their potential customers and have loyal clients throughout the world. In the following manner company grow their business in different part of the country:
In respect to this, business mainly set their targets through they can achieve competitive advantages (Wang, Solloway and Busemeyer, 2014). In this context, organization develop their market in various parts of world and Austria as well. In addition to this, firm will develop their plan which help to them grow their business easily.
From the above graph it can be stated that IKEA grow their business in various part of the world. In respect to this, they will demonstrate their functions in Germany, USA, France, UK and many more country (Collins, D. 2013). In order to carry this, organization can also operate their functions with planning and in that they can establish their new market within the country and outside the nation.
With the help of graph, organization can identify their operations in different part of the world. In addition to this, it will assist to make company description, market analysis of cited country, and organization aspects of the enterprise. In respect to this, business can provide services and products line in different areas (Wenger, 2014). Thus, they can manage marketing and sales fundamental of the company.
Further, the organization has also considered key sources information regarding their plan. In this context, the business makes their system which is feasible for them and demonstrate many things within the enterprise (Mansfield-Devine, 2016). In respect to this, following process mainly adopted by the IKEA in Austria marketplace:
An analytical approach is used to analysis and break the problem into the element which are necessary for solve the problem. It is uses to choose appropriate method and process for a problem which can take place to make small parts of the whole problems. Each problem solve in systematic manner (Magstadt, 2016). In this context, cited firm face many problems when they are operating their functions in Austria market, in this context, they can use following methods through business can overcome their problems:
Observation: With the help of observing. IKEA can take place through they can solve their problems. In respect to this, they can identify problem at the workplace with the observation. In this context, business continuous monitor to the organization performance. If the organization find, they are lack in maximising profits, they need to take action regarding this and demonstrate way through they can enhance their profits (Kohonen, 2012).
Interviewing: With the help of taking interviews, IKEA can expand their businesses in Austria marketplace. In this context, organization taking interview of various members who are working within the enterprise. In respect to this, cited firm taking views of different members of the businesses regarding operations of the company. As results, they can find solution to overcome the problems of the enterprise (Mascola, and Haynes, B. F., 2013).
Collecting Taxes and Artifacts: In this context, government collect taxes from the various parties such as businesses and professionals etc. In respect to this, IKEA has also pay taxes and they can determine where the company lacking to make effective transactions. Different methods helps to collect taxes from the organization and it will assist to make effective participation of each and every member of the firm (Spain, Harms and LeBreton, 2014).
In order to carry this report, an organization can make their plan through to understand different needs of the customers towards the products and services. In this context, cited firm adopt some information which is related with the planning and optimizing various aspects within the organization. In respect to this, IKEA make their plan through adopting various informations related with the business transactions. In addition to this, cited firm use some strategies through they can operate functions in various parts of the world. In this aspect, business will easily find issues which they are facing through operating functions within the environment.
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