Week 5 Assignment Your assignment this week is to review the IKEA
Question # 00093334
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Updated on: 08/17/2015 12:59 PM Due on: 09/16/2015
Week 5 Assignment
Your assignment this week is to review the IKEA Case Study below. While reviewing
it, consider it as background information for your upcoming presentation to the
IKEA Senior Management Team. More details on your upcoming PowerPoint
presentation to the management team are provided at the end of the case study
guidelines.
Deliver the Value: IKEA Case Study
IKEA is a Swedish-owned global business founded in 1943. The business generates
annual revenues of 27 billion euros and employs 139,000 people in 298 stores and
26 countries. The values and design philosophy of the founder continue to underpin
the brand. These values might be summed up as frugal, democratic, environmentally
aware, and design oriented. IKEA has become synonymous with Swedish lifestyle.
The stores are virtually identical across the globe and sell a range of globally sourced
flat-packed furniture products as well as a range of related furnishings for the home
the stores offer customers a Swedish experience by incorporating restaurants and
a variety of customer services intended to simplify the shopping process (e.g.,
childcare). What is interesting about IKEA is that customers have become a
significant part of the value creating processcustomers play a key role in terms of
logistics and in production. By performing the assembly of the flat-packed furniture,
customers complete the final stages in the production process. In terms of logistics,
the customer moves goods from warehouse-style storage through the checkout,
and then transports the goods home. The trade-off for the consumer is lower prices
and immediate gratificationfurniture is typically sold using just in time (JIT)
inventory management, which means that once a customer has placed an order, the
furniture then goes into production and is delivered to the customers home some 3
4 months later.
IKEAs senior management has in the past pursued an aggressive expansion policy,
but management is currently changing direction, adopting a slower rate of
expansion and investing in existing stores. The company plans to increase sales by
10% a year to 2020, thereby doubling annual sales revenues. Management is
concerned about how expansion in the BRIC countries, particularly India and China,
is pursued. There are fears about preserving the companys culture in these huge
markets (Milne, 2013).
Sources:
http://www.ikea.com/ms/en_US/this-is-ikea/company-information/index.html
Milne, R. (2013, September 1). Ikea signals slower expansion. Financial Times.
What do you think? What would you do? What problems do you foresee and
how will this impact IKEAs Swedish concept? Please recommend a marketing
solution that will help IKEA achieve growth in either India or China based on
your understanding of the place P and how delivering the value is evolving.
Please use the case study guidelines below to perform a brief analysis, identify the
problem, suggest alternative solutions, and make recommendations for the
implementation of the solution that you believe is the best fit.
Case Study Guidelines
1. Analysis of the Current SituationThe proper context must be established for the
case analysis. Please provide a SWOT analysis in a SWOT box.
Research: Identify the key environmental factors such as industry trends, level of
competitiveness, customer perceptions, legal considerations, and evolving
technology at the outset of the analysis.
Summarize the key aspects of the internal environment of the firm in terms of
strengths and weaknesses and the external environment in terms of
opportunities and threats to the firm in your SWOT box.
2. The Target MarketIdentify your target market: Who is your target customer? In
terms of demographics and lifestyle, what aspects of consumer behavior provide
insights into this group of customers?
3. The ProblemIdentification of key problem(s). It is easy to identify symptoms of
problems while failing to identify the real problems. For example, declining sales
may be identified as a problem, when the decline is only symptomatic of more
complex problems that are harder to observe. Make a clear distinction between what
is identified as the problem and the symptoms of the problems.
4. Alternative SolutionsIdentify and evaluate alternatives. Develop reasonable
alternatives and evaluate them in terms of feasibility, projected costs advantages,
disadvantages, and potential short-term and long-term consequences.
5. Recommended Course of ActionSelect a course of action and provide the
appropriate strategies and tactics to accomplish the chosen course. Justify your
choice in terms of your analysis. As most practitioners know, charting a course of
action can be a difficult job, but implementation is the true challenge. Produce a
workable action plan that would have a reasonable probability of success in the
implementation phase.
This assignment will be a presentation using PowerPoint. Develop a set of at least five
(5) PowerPoint slides to present the findings of your analysis. Some additional research
is expected. The IKEA website is highly informative. Use APA format and include an
additional slide with your sources. Assume that your analysis will be presented to the
IKEA senior management team and that your job depends on it!
Grading Rubric:
Outline
Points
Best Practices
Followed
15/15
Analysis of
Situation/SWOT
15/15
Target Market
15/15
Problem
15/15
Alternative Solutions
15/15
Final Solution Proposal 15/15
Description
At least 5 slides that follow provided best practices:
First slide should include the Title of the Presentation,
Students name, Course Name and Number, Professors
name and date submitted
Each slide should have a clear and meaningful title
Keep text to a minimum, limit slides to five bullet
points
Use simple, non-distracting slide design with easy-toread font
Add meaningful graphics but do not use animations or
sound files in a recorded Presentation
The proper context must be established for the case analysis.
Please provide a SWOT analysis in a SWOT box.
Identify your target market: Who is your target customer? In
terms of demographics and lifestyle, what aspects of
consumer behavior provide insights into this group of
customers?
Identification of key problem(s). It is easy to identify
symptoms of problems while failing to identify the real
problems. For example, declining sales may be identified as a
problem, when the decline is only symptomatic of more
complex problems that are harder to observe. Make a clear
distinction between what is identified as the problem and the
symptoms of the problems.
Identify and evaluate alternatives. Develop reasonable
alternatives and evaluate them in terms of feasibility,
projected costs advantages, disadvantages, and potential
short-term and long-term consequences.
Select a course of action and provide the appropriate
strategies and tactics to accomplish the chosen course. Justify
your choice in terms of your analysis. As most practitioners
know, charting a course of action can be a difficult job, but
implementation is the true challenge. Produce a workable
action plan that would have a reasonable probability of
success in the implementation phase.
Editing, spelling,
grammar; Sources on 10/10 Written at a graduate level, more than 5 error results in 0 points.
last slide in APA format
Total
100
Notes to student.
Your assignment this week is to review the IKEA Case Study below. While reviewing
it, consider it as background information for your upcoming presentation to the
IKEA Senior Management Team. More details on your upcoming PowerPoint
presentation to the management team are provided at the end of the case study
guidelines.
Deliver the Value: IKEA Case Study
IKEA is a Swedish-owned global business founded in 1943. The business generates
annual revenues of 27 billion euros and employs 139,000 people in 298 stores and
26 countries. The values and design philosophy of the founder continue to underpin
the brand. These values might be summed up as frugal, democratic, environmentally
aware, and design oriented. IKEA has become synonymous with Swedish lifestyle.
The stores are virtually identical across the globe and sell a range of globally sourced
flat-packed furniture products as well as a range of related furnishings for the home
the stores offer customers a Swedish experience by incorporating restaurants and
a variety of customer services intended to simplify the shopping process (e.g.,
childcare). What is interesting about IKEA is that customers have become a
significant part of the value creating processcustomers play a key role in terms of
logistics and in production. By performing the assembly of the flat-packed furniture,
customers complete the final stages in the production process. In terms of logistics,
the customer moves goods from warehouse-style storage through the checkout,
and then transports the goods home. The trade-off for the consumer is lower prices
and immediate gratificationfurniture is typically sold using just in time (JIT)
inventory management, which means that once a customer has placed an order, the
furniture then goes into production and is delivered to the customers home some 3
4 months later.
IKEAs senior management has in the past pursued an aggressive expansion policy,
but management is currently changing direction, adopting a slower rate of
expansion and investing in existing stores. The company plans to increase sales by
10% a year to 2020, thereby doubling annual sales revenues. Management is
concerned about how expansion in the BRIC countries, particularly India and China,
is pursued. There are fears about preserving the companys culture in these huge
markets (Milne, 2013).
Sources:
http://www.ikea.com/ms/en_US/this-is-ikea/company-information/index.html
Milne, R. (2013, September 1). Ikea signals slower expansion. Financial Times.
What do you think? What would you do? What problems do you foresee and
how will this impact IKEAs Swedish concept? Please recommend a marketing
solution that will help IKEA achieve growth in either India or China based on
your understanding of the place P and how delivering the value is evolving.
Please use the case study guidelines below to perform a brief analysis, identify the
problem, suggest alternative solutions, and make recommendations for the
implementation of the solution that you believe is the best fit.
Case Study Guidelines
1. Analysis of the Current SituationThe proper context must be established for the
case analysis. Please provide a SWOT analysis in a SWOT box.
Research: Identify the key environmental factors such as industry trends, level of
competitiveness, customer perceptions, legal considerations, and evolving
technology at the outset of the analysis.
Summarize the key aspects of the internal environment of the firm in terms of
strengths and weaknesses and the external environment in terms of
opportunities and threats to the firm in your SWOT box.
2. The Target MarketIdentify your target market: Who is your target customer? In
terms of demographics and lifestyle, what aspects of consumer behavior provide
insights into this group of customers?
3. The ProblemIdentification of key problem(s). It is easy to identify symptoms of
problems while failing to identify the real problems. For example, declining sales
may be identified as a problem, when the decline is only symptomatic of more
complex problems that are harder to observe. Make a clear distinction between what
is identified as the problem and the symptoms of the problems.
4. Alternative SolutionsIdentify and evaluate alternatives. Develop reasonable
alternatives and evaluate them in terms of feasibility, projected costs advantages,
disadvantages, and potential short-term and long-term consequences.
5. Recommended Course of ActionSelect a course of action and provide the
appropriate strategies and tactics to accomplish the chosen course. Justify your
choice in terms of your analysis. As most practitioners know, charting a course of
action can be a difficult job, but implementation is the true challenge. Produce a
workable action plan that would have a reasonable probability of success in the
implementation phase.
This assignment will be a presentation using PowerPoint. Develop a set of at least five
(5) PowerPoint slides to present the findings of your analysis. Some additional research
is expected. The IKEA website is highly informative. Use APA format and include an
additional slide with your sources. Assume that your analysis will be presented to the
IKEA senior management team and that your job depends on it!
Grading Rubric:
Outline
Points
Best Practices
Followed
15/15
Analysis of
Situation/SWOT
15/15
Target Market
15/15
Problem
15/15
Alternative Solutions
15/15
Final Solution Proposal 15/15
Description
At least 5 slides that follow provided best practices:
First slide should include the Title of the Presentation,
Students name, Course Name and Number, Professors
name and date submitted
Each slide should have a clear and meaningful title
Keep text to a minimum, limit slides to five bullet
points
Use simple, non-distracting slide design with easy-toread font
Add meaningful graphics but do not use animations or
sound files in a recorded Presentation
The proper context must be established for the case analysis.
Please provide a SWOT analysis in a SWOT box.
Identify your target market: Who is your target customer? In
terms of demographics and lifestyle, what aspects of
consumer behavior provide insights into this group of
customers?
Identification of key problem(s). It is easy to identify
symptoms of problems while failing to identify the real
problems. For example, declining sales may be identified as a
problem, when the decline is only symptomatic of more
complex problems that are harder to observe. Make a clear
distinction between what is identified as the problem and the
symptoms of the problems.
Identify and evaluate alternatives. Develop reasonable
alternatives and evaluate them in terms of feasibility,
projected costs advantages, disadvantages, and potential
short-term and long-term consequences.
Select a course of action and provide the appropriate
strategies and tactics to accomplish the chosen course. Justify
your choice in terms of your analysis. As most practitioners
know, charting a course of action can be a difficult job, but
implementation is the true challenge. Produce a workable
action plan that would have a reasonable probability of
success in the implementation phase.
Editing, spelling,
grammar; Sources on 10/10 Written at a graduate level, more than 5 error results in 0 points.
last slide in APA format
Total
100
Notes to student.
-
Rating:
/5
Solution: Week 5 Assignment Your assignment this week is to review the IKEA