Operations Management IKEA Case Study

1.Most of the scheming experts consider that IKEA provisions are planned that majorly has emotional collision on the managerial skills of consumers based on product purchase. In other words, IKEA follows a maze-like structure whereby it design the part of consumer by zigzagging the mazes trails of IKEA that got introduced in other products of IKEA (Slack, Chambers and Johnston 2014). It feels bound by unique furniture as well as accessories. IKEA follows a simple strategy for increasing their sales that tries in holding back the customers as far as possible. This give rise to impetuous supervisory habit of a customer who gets a boost from the iconic scheming arrangement of IKEA

On the other hand, other furniture retail operations has an representation of having retail provisions at the edge of towns that has easy designs with lot of space, free standing partitions and small walls. However, other retail furniture stores grew in size as well as scale for becoming Britain most favorite and biggest furniture retailer for restructuring the store plan (Hultman et al. 2012).

2.It is essential for managing big furniture superstore such as IKEA and this requires lot of workforce. In other words, workforce management considers as one of the dangerous subject for IKEA. As the confusing structures of IKEA will be providing with enormous profits, it becomes hard for the customers especially in case of untoward accident that takes place at the store. In case of big furnishings stores, it has lot of products such as chair, beds as well as sofa sets. With the passage of time and in a situation of no sales, it has been presumed that products can be even dirty as well as non-usable when appropriate preservation behavior are not in the right place (Hellström and Nilsson 2013). On the contrary, small stores have fewer problems as noticed. The main concern is with the accessibility problems as most of the stores are not situated in towns. It can be a loss when management fails in selecting strategic locations in relation to its nearest competitors. Other retail furniture provisions are recognized for its compact size as compared to that of IKEA as well as incredible product lines conventionally where there is subject of space organization.

3.Operation function present within an organization will be defined as proper arrangement of resources that are dedicated for the production of goods as well as services. The main objective of IKEA is to elucidate the operation function as they rely upon providing competitive advantage in the global marketplace (Gustafsson et al. 2015). As far as IKEA superstores is concerned, the main significance of operation functions are portrayed in the fact that IKEA remains dedicated towards providing client with comfortable surroundings as well as better products. There are two set of sub operation prevailing in IKEA that includes warehousing as well as interior designing.

Sales function considers as whole new vertical for IKEA as it is entirely dissimilar from the warehousing as well as interior scheming. Other retail furniture stores also believe in the same objective such as IKEA. Others relies upon superior customer service as the products targets high-end customers (Slack, Chambers and Johnston 2014). The core policy of IKEA is base on the idea of thrift as it provides high quality furnishings for cheap prices so that human being with little disposable income can even afford in purchase of a product. It is for this reason where operation function differs based on selection of ideologies. Both desires in achieving customer satisfaction as well as goodwill as the customer segments are different in nature.

References:

Gustafsson, K., Jönson, G., Smith, D. and Sparks, L., 2015. Packaging logistics and retailers’ profitability: an IKEA case study. In 13th Research Conference of the European Association for Education and Research in Commercial Distribution, July, Lund University, Lund, Sweden.

Hellström, D. and Nilsson, F., 2013. Logistics-driven packaging innovation: a case study at IKEA. International Journal of Retail & Distribution Management, 39(9), pp.638-657.

Hultman, J., Johnsen, T., Johnsen, R. and Hertz, S., 2012. An interaction approach to global sourcing: A case study of IKEA. Journal of purchasing and supply management, 18(1), pp.9-21.

Slack, N., Chambers, S. and Johnston, R., 2014. Operations management. Pearson education.