Ikea Project Drafts

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CONTENTS

1.   Abstract………………………………………………………….………………………....3

2.  Introduction..……………………………………………………...……....................4

3.  Organizational Analysis………………………………………….……………………5

3.1 Goods and Services Design ......................………………….………....5

3.2 Quality Management…………………………………………………..……..6

3.3 Process and Capacity Design………………...…………………………….7

3.4 Layout Design………………………………………..………………….………7

3.5 Human Resource & Job Design…………………………………………..9

3.6 Supply-Chain Management………………………………………………..10

4.  SWOT Analysis…………………………………………………………………………..11

5.  Current Operation Problems………………………………………………….......12

6.  Recommendations……………………………………………………..………..…....14

7.  Conclusion…………………………………………………………………………..……19

8.  References………………………………………………………………..……...………20

Abstract

This project is an analysis of well-known furniture giant, IKEA by using ten operation management decisions, and evaluation of their current strategies. We also applied SWOT analysis project to show their internal strengths and weaknesses while checking any potential opportunities & risk based on other factors externally.  In the end, we will provide possible solutions and recommendations to improve their goods, services, profits, markets share and corporate social responsibility.

Introduction

IKEA is a well-recognized Swedish home furnishing retailer around the world. It was founded in 1943 as a local catalog company. After half a century of development and change, they are now operating their business with 361 stores in over 40 countries.  On top of their 12,000 products, and numerous product lines, IKEA also provides delivery and installation services to its consumers.  Consumers not only love their professional one-stop services and products diversification, but also their attractive low price strategy.  IKEA’s revolves around using cost-saving strategy for its design, location and services.   In order to offer competitive pricing in the market, DIY or Do It Yourself product has always been a symbol of IKEA furniture.  DIY furniture allows space saving design and provides easy transportation for warehouse and consumer alike, this provides even more benefit considering that IKEA often chooses to operate in remote location. The combination of warehouses and stores allow large quantity of products to be shipped and sold in the same location, cutting cost even further for both IKEA and consumers.  Through integrating the above factors into its practice, each of them doubtlessly contribute to IKEA’s leadership position in the market.