jiayou
HIGHER DIPLOMA IN BUSINESS
MODULE UNIT 8: BUSINESS STRATEGY
REPORT
THEME
Effective strategic planning is central to the success of any business organisation. The report will enable students to select an organisation of their choice and explain the process of strategic planning and how the business environment is considered in business strategy formulation.
LEARNING OUTCOMES COVERED:
1. Analyse how the business environment is considered in strategy formulation
2. Understand the process of strategic planning
The deadline is on 25th Nov.
IKEA
Introduction
Ikea’s business grew from strength to strength since Kampar took the decision to transfer ownership of the business to Stitching Ingka. Known for its Scandinavian style, the company has gone from selling fish, vegetable seed and magazines as it did in 1943 to furniture other household items, including dinnerware, pillows, lighting and rugs. A number of stores also include restaurants and cafés. Recent years have shown a reduction in the growth of sales. A downturn in economic conditions in the company’s core European market has played a considerable part in the deceleration. Another key factor in the slowdown is perhaps a lack of strategic direction. Controlled by Ikea of Sweden, marketing strategy is set worldwide with little variation and this is perhaps a factor in its recent downturn of growth in sales.
However, an improvement in the economic climate in Europe and the company’s intention to strongly develop its business in China, Japan and Russia may lead to an upturn in performance. The developed nature of the Japanese market offers marked short-term potential, with its westernised spending patterns, although Russia and China offer more medium-term potential: although spending power is increasing, it remains relatively low. However, in order to generate this upturn in performance, Ikea has to carefully analyse
MODULE UNIT 8: BUSINESS STRATEGY
REPORT
THEME
Effective strategic planning is central to the success of any business organisation. The report will enable students to select an organisation of their choice and explain the process of strategic planning and how the business environment is considered in business strategy formulation.
LEARNING OUTCOMES COVERED:
1. Analyse how the business environment is considered in strategy formulation
2. Understand the process of strategic planning
The deadline is on 25th Nov.
IKEA
Introduction
Ikea’s business grew from strength to strength since Kampar took the decision to transfer ownership of the business to Stitching Ingka. Known for its Scandinavian style, the company has gone from selling fish, vegetable seed and magazines as it did in 1943 to furniture other household items, including dinnerware, pillows, lighting and rugs. A number of stores also include restaurants and cafés. Recent years have shown a reduction in the growth of sales. A downturn in economic conditions in the company’s core European market has played a considerable part in the deceleration. Another key factor in the slowdown is perhaps a lack of strategic direction. Controlled by Ikea of Sweden, marketing strategy is set worldwide with little variation and this is perhaps a factor in its recent downturn of growth in sales.
However, an improvement in the economic climate in Europe and the company’s intention to strongly develop its business in China, Japan and Russia may lead to an upturn in performance. The developed nature of the Japanese market offers marked short-term potential, with its westernised spending patterns, although Russia and China offer more medium-term potential: although spending power is increasing, it remains relatively low. However, in order to generate this upturn in performance, Ikea has to carefully analyse