Ikea OT Case anaylsis
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Q1: List the various ways in which IKEA has managed the global environment over time. Company’s approach that focuses on Simplicity, attention to detail and cost consciousness which help in attracting customers and their needs and wishes and approach of responsive in every aspect of its operations and behavior that lead to keep their organization reputation at a high level and customer expectations Company’s Owner approach in money saving and being responsible for all details and tasks that every employee does and being active as an owner or a stakeholder and also and being a hard-worker and essential in their rules and operations When it comes for expensive and cost coverage, every single employee focuses on keeps the costs and expenses for any certain tasks, activity, trainings, and business travels to a minimum Company’s owner approach that every new employee, should starting the IKEA’s global approach at the time he starts his job by performing it at the bottom of the ladder and getting trained to perform all various jobs involved in store operations.
Employees initiatives and responsibilities for solving problems and for focusing on customers Keep encouraging and promoting enthusiastic employees for those who demonstrate and bought enthusiasm and togetherness into IKEA’S global culture Keeping the teamwork spirit and one family members among all employees without concerning the different managerial levels and titles among them, which helps in implementing commitment to IKEAs and having its values and norms IKEA’s wide global approach and its relationship with its new workforce specially when they establish new business in new culture and country and their management how to deal and develop the relationship among all employees and cultural unions and how they succeeded in US market as the second best country market Q2: How would you explain the rationale behind the success of IKEA’s approach to managing its environment?!
Since the company’s Approach is aiming to have an organized structure by studying and analyzing the forces they face and might face in their business expansion globally and how they company manage the different forces such as Demographic and cultural forces when they decided to expand globally and how the succeeded and specially in the US Markets and also being up-to-date with the technological forces and bringing new ideas and innovation that keep their Products at the top with their competitors and meeting their customers wishes and needs globally and not in a certain country. Also their Approach for Cost reduction that comes from experience curve effects and location economies with high quality, well-designed, and well-made contemporary products at the low-price and to save money to IKEA itself and their customers, the company buys items in bulks, ships and stores them unassembled using flat packages and customer has to assemble many items together on his own at home.
Also a crucial success for IKEA is its relationships with its suppliers and they managed to have just 3 suppliers with top quality products and different tastes and designs where it has also created contracts with these suppliers to keep providing IKEA with the best quality and quantities IKEA needs and want to develop. IKEA has globally expanded and enlarge and protect its domain in 38 countries with 313 stores most of them in Europe, North America, Asia and Australia. The IKEA Group itself owns 276 stores in 25 countries and the other 37 stores are owned and run by franchisees outside the IKEA Group in 16 countries/territories. IKEA keeps caring for its shareholder and especially for its managers and workforce by giving very good paid salaries, promotions, wages, bonuses and stable employment especially for those who demonstrate enthusiasm and customer orientations and care and getting them trained and this can been see how most of IKEA managers rose from its ranks.