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IKEA: Operations Management

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Using the assigned articles and other research, analyze IKEA's global operational strategy. Integrate the learning of stewardship, systems thinking, strategy, quality and execution where applicable.

Using the assigned articles and other research, analyze IKEA's global operational strategy. Integrate the course learning of stewardship, systems thinking, strategy, quality and execution where applicable.

Article Title: What Is Strategy?
Authors: Porter, Michael E.
Source: Harvard Business Review; Nov/Dec96, Vol. 74 Issue 6, p61, 18p, 3 diagrams, 1 graph, 2c

Article Title: How competitive forces shape strategy.
Authors: Porter, Michael E.
Source: Harvard Business Review; Mar/Apr79, Vol. 57 Issue 2, p137, 9p, 1 diagram
IKEA Article: http://hbr.org/product/ikea-invades-america/an/504094-PDF-ENG?Ntt=ikea%2520invades
Alternate for Above:
Article Title: The Five Competitive Forces That Shape Strategy
Authors: Porter, Michael E.
Publication date: Jan 01, 2008. Prod. #: R0801E-PDF-ENG
Source: http://hbr.org/product/the-five-competitive-forces-that-shape-strategy/an/R0801E-PDF-ENG

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The answer to this problem explains operations management of IKEA . The references related to the answer are also included.

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IKEA's global operational strategy shows stewardship. It has carefully planned and managed its resources. It has lowered its operational costs. Its employees have ordinary officers and the employees travel economy class. It has realized economies of scale through large volumes. IKEA has improved the functioning of its supply chain. It has trained its employees to reduce costs at every opportunity. This is stewardship in action. IKEA has developed a culture of cost savings. The flat pack of furniture that reduced the costs of transportation was the foundation of IKEA. The company followed it up with economies in volume purchases, and transportation. Later on, IKEA improved the services provided such as on floor counselling, and helping planning of home furnishing. IKEA has now grown into selling of lifestyles rather than selling furniture.

IKEA has also adopted the systems approach. System's thinking relates to the process of understanding how each component of the organization influences another. The ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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