IKEA Case Study
IKEA has a firm relationship with its suppliers/ partners who are able to share the same business model and values (Supplierportal.ikea 2014). They have around 1,000 suppliers in 53 countries (Ikea.com 2015). They develop product exceed customer expectation through value chain intergration. IKEA makes full use of value chain integration to maximize value and to reduce all the unnecessary cost and time. This gives support during the intense competition by building solid connections with suplliers, manufacturers and customers. (Han and Zhong 2012). IKEA keeps looking for the best suppliers from over the world who offer the lowest possible price.
According to USAtoday article (2015), IKEA wants to get a little more personal to learn more about …show more content…
There are solar panels installed on the roofs of its stores (Kiefer 2013). According to Forbes, IKEA makes a commitment to develop and own renewable electricity supplies, and sets the goal of producing more renewable energy than it uses by 2020. IKEA owns 157 wind turbines and has installed 550,000 solar panels, which helps them to save costs of energy and decrease the carbon footprint. (Detwiler 2014). IKEA can use the saving to improve their products further.
Fernando Flores (1993) stated in his report that, IKEA relies on JIT to develop the sophisticated software to interact with distribution centers, fill orders and replenish products. This helps IKEA to avoid the high levels of inventory and tighten its capital up. key factor of designing a product is that product performs well, and operates properly during the expected lifetime. IKEA has testing labs where they test the prototypes before producing to ensure they are safe and functioning well (Assbring and Halilovic 2012). According to the information given in the Wall Street Journal (2015), IKEA has a very big testing and training lab in Shanghai, which conducts over 100,000 tests a year. IKEA intensively focuses on the quality since the cost of reparing products, handling returns and unpleasant customers are worse than addressing the issues (Chaudhuri …show more content…
Nowadays, the perception of customers is very high towards the CSR of a business, which is related to society, environment and economy. If the company does not have capability to identify where to focus and what is the appropriate strategy to become a better business, it cannot solve those problems related to CSR. So strategy of CSR is created as a solution for better performance. The EFQM model has been coordinated with CSR to make it a strategic assessment framework. (Thiengnoi and Afzal 2009). To achieve this IKEA is implementing the Sustainability strategy _ People & Planet Positive. (IKEA’s sustainability report
According to USAtoday article (2015), IKEA wants to get a little more personal to learn more about …show more content…
There are solar panels installed on the roofs of its stores (Kiefer 2013). According to Forbes, IKEA makes a commitment to develop and own renewable electricity supplies, and sets the goal of producing more renewable energy than it uses by 2020. IKEA owns 157 wind turbines and has installed 550,000 solar panels, which helps them to save costs of energy and decrease the carbon footprint. (Detwiler 2014). IKEA can use the saving to improve their products further.
Fernando Flores (1993) stated in his report that, IKEA relies on JIT to develop the sophisticated software to interact with distribution centers, fill orders and replenish products. This helps IKEA to avoid the high levels of inventory and tighten its capital up. key factor of designing a product is that product performs well, and operates properly during the expected lifetime. IKEA has testing labs where they test the prototypes before producing to ensure they are safe and functioning well (Assbring and Halilovic 2012). According to the information given in the Wall Street Journal (2015), IKEA has a very big testing and training lab in Shanghai, which conducts over 100,000 tests a year. IKEA intensively focuses on the quality since the cost of reparing products, handling returns and unpleasant customers are worse than addressing the issues (Chaudhuri …show more content…
Nowadays, the perception of customers is very high towards the CSR of a business, which is related to society, environment and economy. If the company does not have capability to identify where to focus and what is the appropriate strategy to become a better business, it cannot solve those problems related to CSR. So strategy of CSR is created as a solution for better performance. The EFQM model has been coordinated with CSR to make it a strategic assessment framework. (Thiengnoi and Afzal 2009). To achieve this IKEA is implementing the Sustainability strategy _ People & Planet Positive. (IKEA’s sustainability report