Great Strategic Management Assignment Sample 2022
Introduction (Strategic Management Assignment Sample )
IKEA is one the reputed furniture selling companies of the world, and has successfully expanded its operations to different geographical locations. It is privately held company that has recently expanded its operations to India.
IKEA strategic business plan is to concentrate on the sustainability plans and identify the issues that affect the operational conduct.
Sustainable plans are designed to use the resources properly, to reduce the carbon footprint, building social reasonability, and adopting a transparent approach towards the stakeholders.
An Irish based company had gained its reputation by 2000, and has been successfully capturing the markets in various parts of the worked (Porter, 2004).http://Great Strategic Management Assignment Sample 2022
IKEA environmental issues
India is one of the fast developing and economically stabilized countries of the world. The GDP rate for the nation was recorded at an average of 7-8% annually, and this reflected the positive factor of the country.
FDI policies in India have been regularized, which makes it one of the most preferred nations for the foreign investors.
IKEA has expanded its business to India and targeted clients from the metropolitan cities of the country.
The buying capacity of the people is increasing, but the challenges involved with the process cannot be overlooked. Online product buying and consumption pattern in India has not fully liberalized as it can be witnessed in the US and the UK.
Customers still prefer to visit the stores personally and get the product and service related information before buying a product. IKEA moreover faces a huge challenge from the small sized companies or the furniture stores that operates in India.
Business venture is possible, but to capture the market is not an easy task. IKEA has targeted medium and higher income group of people, who are interested in buying expensive products that are quality based (Jonsson et al., 2013).http://Great Strategic Management Assignment Sample 2022
The labor law and the business conduct procedure in the Indian market are quite different from the international ones, and thus IKEA ahs to consider these aspects before planning to expand the operational works.
The online policies and rules in the Indian market are different from the ones that are followed in the international market.
This makes it quite demanding and challenging for the company to adopt the foreign expansion policy and introduce the changes that is needed for expanding the operational works.
IKEA’s corporate level strategies
The retails tires corporate strategies would be based on –
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Corporate level strategies
The company would rebrand the product and sell customized furniture to the clients, and will target the potential buyers in Delhi, Mumbai, and Bangalore.
Marketing budget would be increased, so that the best marketing and promotional activities could be adopted. Through the marketing process, the company would target the emerging market in India.
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Functional level strategy
The actions would be decided at the functional level to decide the works that would be done by different departments.
IKEA would launch wide range of the future products. In this plan the company would concentrate on adopting the better plans to approach the clients interested in buying online furniture form the stores.
Based on the cooperate level strategies, the management will concentrate on the points mentioned below-
- Develop long-term plans – The plan would be to provide the clients with an exclusive long-term plan to approach the clients and offer the better quality services.
- This would be included in the long-term plan, where the management will include the plan to market and promote the services.
- Dynamic process – The marketing and strategic plans are developed through the dynamic process, where the management process is adopted and introduced to approach the clients.
IKEA’s choice of international market entry mode
IKEA always prefer to maintain and follow a simple and beneficial market entry mode to venture in the Indian market.
The company has adopted the joint venture mode of market expansion that helps in analyzing the risks associated with the customer behavior and in selecting the right market for the products.
In India, the company has planned the joint venture mode that would allow identifying the business risks and helping the company to reach the targeted clients.
Benefits
- Helps to establish a market in India
- Customer needs could be properly analyzed and accurate products and services could be introduced for the clients
Challenges
- Capture of the clients through the online method
- Provide the better services, which will create a brand name is not an easy task.
Challenges in India
- Attract the clients, with the best product to buy the product through the online method
- Introduce a proper method to provide the clients with the deserving options that will increase the product sales and its value (Steenbok, 2010).http://Great Strategic Management Assignment Sample 2022
Recommendation
- Adopt a strong marketing process that would help in attracting the clients
- Share the product and service information as this will expand the business activities to the targeted market.
References
Jonsson, P., Rudberg, M. and Holmberg, S., 2013. Centralised supply chain planning at IKEA. Supply Chain Management: An International Journal, [e- journal] 18 (3), pp.337-350.
Porter, M., 2004. Competitive advantage: creating and sustaining superior performance. 1st ed. New York: Free press
Stenebo, J., 2010. The truth about IKEA: the secret behind the world’s fifthrichest man and the success of the flatpack giant [e-book] London: GibsonSquare. Available through: Anglia Ruskin University Library website<http://libweb.anglia.ac.uk>
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