Strategic Management and Business Level Strategies
IKEA
Introduction
- Brief History of IKEA: In 1943 Ingvar Kamprad, the founder of IKEA, starts IKEA.
- The I stands for Ingvar, K for Kamprad, E for Elmtaryd (the name of his family farm) and A for Agunnaryd (the name of the village he lives in).
- In 1948 Ingvar built a small shed on his family’s farm where the milk man would pick up goods and take it to the train station to be shipped to customers.
- During the 1950’s IKEA started to sell furniture at fairs.
- In 1958 IKEA opened their first store.
- In 1963, IKEA started to expand internationally currently having stores in over 35 countries. (can add more or delete if want)
Objective
- To study the effectiveness of business level and the international strategies of IKEA
Scope
- Business Level Strategies (general): define what business level strategy is, explain differences between business level strategies and the risks each strategy has.
- Business Level Strategies IKEA: discuss their strategies versus their competitors (if they even have competitors)
- Study the prior years of IKEA and see if business has been improving. (Should use accounting for this ex. ratios, in actual report do graphs)
- Discuss if the business strategy is working? Why is it working or not working? Improvements in IKEA’s strategy
- Performance evaluation of IKEA’s strategy 200?-2009
- Finding
- Recommendation
- Should try to include the following items in Scope:
• Value Chain model
• 5 M’s
• Porters 5 Forces
- Eight Performance Measure
• Firm Survival, Accounting measures,
• Multiple stakeholder approach
• Balanced score card
• Corporate social responsibility,
• sustainability and triple bottom line
- Competitive advantage
• Strengths/weaknesses
- Environments
• External,
• Internal
- Industrial Organization model
- Stakeholders
- Assets
• Tangible
Introduction
- Brief History of IKEA: In 1943 Ingvar Kamprad, the founder of IKEA, starts IKEA.
- The I stands for Ingvar, K for Kamprad, E for Elmtaryd (the name of his family farm) and A for Agunnaryd (the name of the village he lives in).
- In 1948 Ingvar built a small shed on his family’s farm where the milk man would pick up goods and take it to the train station to be shipped to customers.
- During the 1950’s IKEA started to sell furniture at fairs.
- In 1958 IKEA opened their first store.
- In 1963, IKEA started to expand internationally currently having stores in over 35 countries. (can add more or delete if want)
Objective
- To study the effectiveness of business level and the international strategies of IKEA
Scope
- Business Level Strategies (general): define what business level strategy is, explain differences between business level strategies and the risks each strategy has.
- Business Level Strategies IKEA: discuss their strategies versus their competitors (if they even have competitors)
- Study the prior years of IKEA and see if business has been improving. (Should use accounting for this ex. ratios, in actual report do graphs)
- Discuss if the business strategy is working? Why is it working or not working? Improvements in IKEA’s strategy
- Performance evaluation of IKEA’s strategy 200?-2009
- Finding
- Recommendation
- Should try to include the following items in Scope:
• Value Chain model
• 5 M’s
• Porters 5 Forces
- Eight Performance Measure
• Firm Survival, Accounting measures,
• Multiple stakeholder approach
• Balanced score card
• Corporate social responsibility,
• sustainability and triple bottom line
- Competitive advantage
• Strengths/weaknesses
- Environments
• External,
• Internal
- Industrial Organization model
- Stakeholders
- Assets
• Tangible
References: - IKEA website: www.ikea.com - Plan to use resources in library such as online journals.