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Global Business Operation: Case Study Of IKEA

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Question:

Discuss about the Global Business Operation for Case Study of IKEA.

 

Answer:

Introduction:

The purpose of the case study report is to analyse the business operation of an organisation in comparison to home country and Australia. Ikea, the Swedish retail home furniture brand has been selected as the organisation for the case study. It has been the world’s largest furniture retailer since 2008 (Ikea.com 2017). The organisation is well known for its best business practices in its domestic land and the international market as well. The analysis shall be based on the culture and management behaviour, global corporate social responsibility and the multi-national competitive advantage.

Analysis of Business Operation:

Culture and ManagementBehaviour:

IKEA’s cultural and management behaviour has always been inclined towards supporting the diverse culture of the work force. The Company does not faces much challenges in its terms of cultural diversity in its homeland but it has indeed faced challenges in terms of managing the staffs from conflicts and diversity (Ikea.com 2017). In order to overcome this distress, it has been found that the Company has taken major steps like training the staffs and setting a standard format in the organisational value that keep up the essential value and avoid any kind misunderstanding. This is eventually done in order to improve the performance of the employees and increase productivity of the organisation (Smh.com.au 2016).

In its report, IKEA stated that their organisational policies are framed in a way that inspires people to contribute towards the working of the organisation. They believe that every individual has something valuable to offer that would automatically contribute to the success of the organisational activities. As pointed out by Aves (2017), in the era of globalisation, organisations are bound to face challenges in terms of cultural diversity and it falls on the responsibility of the management of the organisation to set proper guidelines that each individual working for the organisation should receive the respect (Ikea.com 2017). It can be clearly said that IKEA has been inspiring people to show their creativity and innovation and that has continuously developed the productivity of the co-workers (Au.indeed.com 2017).

 

Global Corporate Social Responsibility:

In terms of global responsibility, IKEA has always given priority to sustainability. Their way of working is shaped in a way that does less harm to the environment. IKEA has been doing more than achieving success in market. In Sweden, the organisation has been found to partner with INICEF and donated Euros to save the lives of children (Ikea.com 2017). The organisation has contributed towards improving the situation of children who were the victims of child labour and also contributed towards women empowerment (Willi 2015). IKEA also holds a fundraising program every year to donate money and support Children’s Rights & Business Principles developed by UNICEF.

If the Social Responsibility as conducted in Australia is considered, it has to be said that IKEA has social initiative programs in Australia that is aimed at improving the lives of children in need through health, education and basic human rights (Ikea.com 2017). The organisation has also partnered with the WWF and has helped improvement in the life of animals. The Company believes that nobody is actually equal till everybody is equal and thus, embraces vision to improve the condition of the co-workers, suppliers, customers and even the local communities (Smh.com.au 2016). In terms of sustainability approach, it has been found that the organisation recycles their products and contributes towards a safer and greener environment. IKEA stores also generate solar power that supports the warehouses across the country. The organisation has certain sustainability goals that are aimed to be achieved by 2020 (Ikea.com 2017).

Multi-National Competitive Advantage:

IKEA’s corporate culture can be considered to provide competitive advantage to the organisation. In Sweden, the organisation gains competitive advantage in terms of the effective employees and labourers working for the organisation (Ikea.com 2017). It is the global giant that has huge numbers of stores compared to its competitors like TESCO, ASDA, Barn Furniture and others. The company makes products of different ranges and offer the same at a lower cost than its competitors. In addition to this, people of Europe are also fascinated towards the innovative products offered by the Company (Ikea.com 2017). This way the company has been enjoying competitive advantage in its domestic land.

 In Australia, IKEA has been able to broaden its customer base by offering a number of facilities that other organisations do not offer. The furniture retail giant has its online store that makes the shopping experience easier for the consumers. This is one of the competitive advantages that the organisation enjoys in terms of others (Ikea.com 2017). The numerable numbers of stores with great customer servicing has always attracted consumers to purchase product from IKEA and not other domestic brands like Harvey Norman. It has been found that the company has 349 stores operating in more than 43 countries (Willi 2015). IKEA offers before and after sales services to its consumers. Other competitive advantages that it has are the growing demand of the consumers and the innovative products that it has to offer to its customers.

Conclusion:

A detailed analysis of the corporate working of IKEA has been done here. It has been observed that IKEA has been successful in terms of providing all the necessary amenities and basic rights to its employees. The organisation has the best corporate culture in terms of its competitors. The organisational approaches are similar in this domestic land, Sweden, Europe and that in Australia. In terms of corporate social responsibility as well, the organisation has contributed towards the betterment of the society by supporting the lives of children. The organisation has gained competitive advantage in terms of product differentiation and competitive pricing. The retail giant has something to offer to every consumer. The organisation has been found to prosper in its business field and it is expected that the way the organisation is offering services to its employees and the consumers, it has a great future ahead in terms of its competitors as well.

 

References:

Au.indeed.com 2017 IKEA Review Available at: https://au.indeed.com/cmp/Ikea/reviews [Accessed on: 3-5-2017]

Aves, J., 2017 IKEA – From products to experiences Available at: https://customerthink.com/ikea-from-products-to-experiences/ [Accessed on: 3-5-2017]

Ikea.com 2017 Human resource Available at: https://www.ikea.com/ms/en_AU/the_ikea_story/working_at_ikea/work_areas_human_resources.html [Accessed on: 3-5-2017]

Ikea.com 2017 IKEA Human Rights Available at: https://www.ikea.com/ms/en_AU/this-is-ikea/people-and-planet/people-and-communities/index.html [Accessed on: 3-5-2017]

Ikea.com 2017 People and Planet Available at: https://www.ikea.com/ms/en_AU/this-is-ikea/people-and-planet/index.html [Accessed on: 3-5-2017]

Ikea.com 2017 Responsibility beyond home furnishing Available at: https://www.ikea.com/ms/en_SG/the_ikea_story/people_and_the_environment/ [Accessed on: 3-5-2017]

Ikea.com 2017 Working at the IKEA group Available at: https://www.ikea.com/ms/en_AU/this-is-ikea/working-at-the-ikea-group/index.html [Accessed on: 3-5-2017]

Smh.com.au 2016 IKEA boss happy to take long way to top Available at: https://www.smh.com.au/business/ikea-boss-happy-to-take-long-way-to-top-20110916-1kdmw.html [Accessed on: 3-5-2017]

Willis, R., 2015 Australia’s latest IKEA store opens flat pack culture up to a whole new audience Available at: https://www.dailytelegraph.com.au/lifestyle/home-mag/australias-latest-ikea-store-opens-flatpack-culture-up-to-a-whole-new-audience/news-story/61614fcc8baaae0378696680841ebaf6 [Accessed on: 3-5-2017] 

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