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The Organization Strategy of IKEA (Essay Sample)

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IKEA uses the 5 stages of strategic planning process for developing and managing the organization strategy. These are as follows:
Founded in 1943 by a poor Swedish farmer called Ingvar Kamprad, the IKEA organization is currently one of the biggest suppliers of furniture on the planet. IKEA's goods are usually used and shipped flat so the consumers themselves may install them (Collins,2011). The business is a global phenomenon for the combined revenues of both online and offline firms. The purpose of this paper is to identify the process adopted by IKEA Organization for developing and managing the organization’s strategy. It then discusses the relative strengths and weaknesses of the IKEA organization’s current strategy development process and implementation process.
IKEA uses the 5 stages of the strategic planning process for developing and managing the organization’s strategy. These are as follows:

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IKEA ORGANIZATION STRATEGY
Name
Institutional Affiliation
Date of Submission
INTRODUCTION
Founded in 1943 by a poor Swedish farmer called Ingvar Kamprad, the IKEA organization is currently one of the biggest suppliers of furniture on the planet. IKEA's goods are usually used and shipped flat so the consumers themselves may install them (Collins,2011).  The business is a global phenomenon for the combined revenues of both online and offline firms. The purpose of this paper is to identify the process adopted by IKEA Organization for developing and managing the organization’s strategy. It then discusses the relative strengths and weaknesses of the IKEA organization’s current strategy development process and implementation process.
IKEA uses the 5 stages of the strategic planning process for developing and managing the organization’s strategy. These are as follows:
Initial Assessment
The mission of IKEA is to provide customers with a decent living existence. This is through marketing concepts that deliver a range of well-designed and efficient home furniture items, at costs that are as affordable to as many consumers. The IKEA brand is created by selling the contents of this system and enabling buyers to discover the brand concept. The IKEA brand provides a description of the subjective and reasonable beliefs shared by customers with the IKEA trademark and product image. This brand identity is a result of its worker’s efforts at all levels around the world for more than five decades. Customer experience, quality of products, low cut prices and the details that they deliver to their consumers contribute to their image.
Situation Analysis
IKEA consumers typically devote more money in the store than they would do in competing stores. The way the company organizes its shops separates itself from other rivals under one roof. The product variety needed for the company is limited to medium as they offer standardized goods. Given that it is based on delivering uniform and well-established goods, it focuses on low cost. The first target category is the young people who might have or have no children from poor and medium-income households. The other focus demographic is corporate clients of typically small to medium-sized businesses. The features of their market groups are young, well-trained, independent, and thus entirely different from the conventional furnishings. The proportions of volume as IKEA functions just like a factory, manufacturing a huge amount of furniture and goods that could be self-assembled by its consumers. The idea that in many nations IKEA can be purchased always permits economies of scope and hence the company sells catalogs, shopping lists, and pencils for notes and measurements in order to promote shopping. IKEA has a great deal of expertise in the distribution market, quality selection, and expense control (Hill et al., 2016).
Strategy Formation
IKEA products may be regarded as lower standard when priced cheaper than many furniture stores. The company admits that luxury home customers are not adequately represented. Sometimes they order products while they are short on supply, to keep their supplies from being redundant, and to reduce costs. These lean buffer capabilities will contribute to IKEA discovering outlets that have sold out common products early. The other field of operation management on which IKEA focuses is quality control. Its performance and profitability increase due to quality being controlled. The key goal of the organization’s management of product consistency is to fulfill consumer demands and to offer incentives to the organization's workers. Certain methods and procedures in the quality assurance of the goods were also implemented. Through departments and selection networks established by the organization, the method of quality control is carried out (Hill et al., 2016).

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