Ikea Pestle And Strategic Options Analysis Marketing Essay

Ikea Pestle And Strategic Options Analysis Marketing Essay INTRODUCTION The aim of this paper is to conduct a SWOT and a PESTEL analysis of IKEA and summarise an assessments of IKEAs strategy and strategic options. IKEA, which was started in 1943, is the world largest furniture retailer. It offers a wide range of well-designed, functional home furnishing products at affordable prices. This enables as many people as possible to afford them. IKEAs focus throughout its existence has been to make and provide good products at low prices to customers. Thus, it has with time developed methods that are both cost-effective and innovative. SWOT ANALYSIS According to Kourdi (2009), an analysis of the companys strengths, weaknesses, opportunities and threats is a good tool for gathering information on the strategic position of the business. He explains that strengths and weaknesses are found within the internal environment of the organisation while opportunities and threats are usually found from the external environment within which the business operates. Strengths IKEA provides other amenities in their stores these include playrooms for children, ample parking space and restaurants and Swedish cafà ©s. This attracts customers who care about parking and who have children. The children can be left playing at the play zone while the parents do the shopping. IKEA designs its own furniture. This makes the business become innovative in designs and also assures customers of the same range of furniture and quality all over the world. Long-lasting relationships with selected key suppliers are a major strength of IKEAs purchasing and product development strategy. This is because IKEA is directly involved only in conceiving, distributing, and selling its products Designing products so that they can be packed flat and assembled by our customers greatly reduces IKEAs cost. This means IKEA can ship more items in one truck, less storage space is required, labour costs are educed and transport damages are avoided. For the customer, this means lower priced products and easy transportation home. Weaknesses Scandinavian design and style is not everyones preference. IKEA needs to diversify on its product design to appeal to other conservative markets in the world. For example, customising some products and amenities like restaurants to oriental markets in a place like China or Hong Kong , Arabic ones for the middle-east or even African products for the African market (when it ventures to Africa) will appeal more to another market segment of traditionalists or very patriotic citizens of these regions Since IKEA does not own any transport facilities, its supply and distribution network is physically connected through external actors and thousands of logistic partners. Coordinating and connecting this complex network it had adopted needs a lot of concentration and very advances monitoring system, in addition, IKEA does not unilaterally control and most of the logistic relationships Opportunities There is the potential to expand to other areas where IKEA has no stores due to its international fame, strong globally recognised brand and growing demand for its products. These untapped markets include South America and Africa. IKEA recycles materials in its aim to grow organically. IKEAs website states that There is a true business potential for IKEA in providing solutions that enable customers to live a more sustainable life at home. IKEA is developing effective solutions for customers in order to support them recycling or reusing used products, aiming at no products ending up at landfill and the recycled materials used in producing new IKEA products.  [1]   Threats IKEA delegates much responsibility to its competent partners. These are normally either those who have long been in charge of manufacturing a certain product, or those who have specific technical competences. This provides a difficulty in controlling and maintaining standards. Due to this, IKEAs competences and organizational structure need to keep on being re-visited and modified to fit specific partners and interaction processes and networks Like any other business, Competition from low end general discount retailers such as Wal-Mart, office supply stores such as Office Depot, and discount warehouses such as Costco. Wal-Mart is the worlds number one retailer. These general merchandise retailers tend to aggressively promote their furniture products on the basis of price as well. Another threat is the high-end specialty retailers who normally offer luxurious store environments designed to appeal to people looking for feelings of affluence, high class, ostentation prosperity, and comfort. These retailers also offer various payment options and easy credit to make it easier for shoppers to commit to a more items or costly products. PESTLE ANALYSIS PESTLE is a tool that is used to analyse the macro-environment in which an organisation exists. It is an acronym that stands for Political, Economic, Social, Technological, Legal and Environmental factors. PESTLE analysis generates information that helps senior managers when strategising and when formulating strategic plans and policies Morrison (2008) argues that PESTLE analysis can also be used as a framework for looking outside the organisation to hypothesise what may or may not happen. It is a useful framework to use to ensure that some of the basic factors are not overlooked or ignored. Used in a similar way to that of business planning  [2]   Political environment This includes issues to do with government policies on taxation, tariffs and trade restrictions. It also encompasses employment laws and the activities and involvement of trade unions. Political stability of the environment is also important. IKEAs political environment is favourable. In Europe and America, the political systems have developed over long time providing a very stable environment. IKEA does not operate in Africa where most nations are not politically stable Economic Factors IKEA like most businesses in Europe and America is currently operating in global economic recession. In most countries, there has been slow economic growth for the last two years. Other economic factors are typical to each country and have to with inflation rates, interest rates, wage rates and minimum wage legislations. Sociological factors Markets where IKEA operates are faced with changing social trends. For example there are now fewer first time buyers in the housing market which is mainly due to hard economic times. Thus there may be a deceleration in the markets growth rate. According to echeat.com, many people associate Sweden with a fresh healthy way of life.  [3]  This Swedish lifestyle is reflected in the IKEA product range. The freshness of the open air is reflected in the colours and materials used and the sense of space they create by using blond-coloured woods, untreated surfaces and natural textiles. IKEA has also developed a very comprehensive corporate social responsibility program. IKEAs social responsibility policy gives a provision for humanitarian donations and support to various charities such as the World Wildlife Fund, UNICEF and Save the Children fund. Technology IKEA has embraced technology as a business tool. It has an up to date website from which customers can view online catalogues, check for stock availability before going to the store, order online and even correspond with the customer service team. As technology evolves, IKEA will perpetually keep on updating and upgrading its technology to keep pace with its global networks ranging from network relationships with supplier to those with distributors. Legal IKEA is a global business. This means that it is affected by many laws and legislations in all the different countries. This poses a threat where IKEA may be unable to control standards and/or quality in some jurisdictions where IKEA products are where there are no regulations to control working conditions. Environment Since it was founded IKEA has been sensitive to the environment which leads it in making better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment SUMMARY ON IKEAS STRATEGY AND STRATEGIC OPTIONS IKEA can create more opportunities and tackle threats by strategic planning whist taking advantage of its strengths and working on its weaknesses. In the case study IKEA Invades America, IKEAs strategy is to have market dominance and market leadership as far as house furnishings are concerned. It can do so by assess its external and competitive environment Low-prices for it products is the main IKEAs strategy that makes customers want to buy from IKEA. This low price strategy is coupled with a wide range of well designed products. IKEAs products cater for every lifestyle and life stage of its customers, who come from all age groups and types of households. This diversity in the niche market is increases IKEAs potential market. In the case study Strategy in Industrial Networks: Experiences from IKEA by E. Baraldi, Industrial networks and business relationships play key roles for the strategy of IKEA. It should therefore continue to work with suppliers who take responsibility for people and the environment and who want to grow and develop with IKEAs growth. As part of its continuous work to improve conditions in the supply chain, IKEA has implemented a revised code of conduct, IWAY, and joined an industry collaboration exploring the possibility of developing global supply chain standards (IKEA sustainability report 2009: 13) Sustainability needs to be a part of the IKEA business strategy, and must therefore be integrated into each and every one of IKEAs business strategies, and in its product range (IKEA sustainability report 2009: 8). IKEA will need to lead developments with innovation and technical know-how and be transparent to its stakeholders. IKEAs products, processes and systems should continue demonstrating responsibility for people and the environment.

Alternative Scenarios/Future Analysis & Delphi Technique

The way word ‘dynamic’ has qualified itself, to describe current affairs, implies that future is getting more uncertain now. Radical changes in the past have made present more autonomous; and future more unpredictable. Need to understand and define the future have made it more demanding for the analysts to outline different trends curtailing to specific events, wonder what might happen next, and make strategies to control the future. Before stepping into the world ‘about to come’, it is important to understand that future is not prediction, there’s nothing rationale known about future, and tomorrow would not be like today.Studying future needs a systematic approach that involves identification of past trends, study of current scenarios, and exploring possible alternatives, given possible scenarios. Alternative Future Alternative future analysis is critically an assessment approach that provides large scale long term perspective of a problem that could be divided into different alternative, each curtailing to any one sub-perspective. It helps translate different visions and goals into alternatives, which could be assessed by the experts/analysts. It provides the policy makers with a ‘vision’ to follow, in case any scenario/alternative is realized.As all these alternatives are critically evaluated socio-economically, ecologically and rationally, chances of their sustenance is far better than many other future predicting techniques. There are two main ways the alternative future analysis process operates (Steinitz 2003 and Theobald & Hobbs 2002). Firstly, it is the formation of numerous alternative plans, assessing their consequences, and then following the most desirable one. It involves geometrical, pre-dominant and political interests of people. This approach is simple, but, simplicity is also a limitation (Steinitz 2003).Secondly, it is the identification of ‘most’ important issues, pertaining to polic y and decision making. Concluded scenario reflects the inputs of different people, reflected from the choices made for it (Steinitz 2003). Scenario Analysis Scenario analysis is a strategic tool, designed impeccably to design strategies, based on multiple outcomes or complex competitive situations (Sandmore, 2005). Selection of scenarios/outcomes is based upon the probabilities assigned to them, in response to values attained from different related factors. These responses help analysts develop contingency plan that covers many different possibilities.Moreover, they can identify potential threats, and can evaluate current strategy, working under the similar model. The analysis starts with the assumption that some future state has been achieved; now the work starts backwards. It helps identify all those factors and their probable affect, until a ‘base case’ is prepared. Now those variables are altered to consider the changes in the output. So it gives analysts more contr ol over the variables, and helps decision makers identify different variables, with respect to their impact and urgency. It is important to understand that it does not predict future, it just gives a possibility.Its success is very much dependent upon the level of details or factors involved are identified by the analysts, and how correctly they have related those factors to the scenario. Those factors could be political, technological, economical or social in nature. It also helps analysts understand different scenarios, and make best use of it by controlling most effective variable. Consequently, it increases the decision making time, that could result in change of some factors or scenarios over time. Moreover, external impacts could not be controlled, and their happening is not easily predictable.It also increases the chances of errors, and questions the dependability of analysis. Delphi Technique Derived from a Greek’s oracle, Delphi is the best known qualitative, structu red and indirect future prediction method in use today (Woudenberg, 1991). It consists of a sequence of steps adopted for provoking and refining opinions of different experts (Brown, 1968). This technique was adopted by multiple disciplines and each altered it to its use; hence we have three different techniques in use today. Conventional Delphi is used for forecasting and estimating unknown parameters up to a level of consensus.Policy Delphi is used to generate most opposite ideas or opinions to identify the two extremes (Bjil, 1992). Decision Delphi, on the other hand, is utilized to reach decisions amongst experts, with all contributing in the solution. While following Delphi approach, firstly, all the participants are informed, informally, about issues to be discussed. Secondly, a questionnaire regarding issue is distributed. This part includes great involvement of monitoring team, as this must elicit convergent and divergent points. Thirdly, more questionnaires are distributed, each with the knowledge about the previous one.This helps them refine their opinions, and could mold the respondents’ answers to a particular direction. It is repeated, until and unless a final consensus is achieved. Finally, the coordinating team pulls together all the responses and consensus into a final report (Masini, 1993). The most unfortunate development in the end of nineteenth century was the formation of Al-Qaida that has threatened most of the developed economies, especially United States of America and United Kingdom. In 1998, Osama Bin Laden, the leader of Al-Qaida, announced that his league will be in pursuit of Weapons of Mass Destruction (WMD).Since then, many American and European countries have put hands together to fight against the increasing influence of these terrorists. After the most drastic terrorist attack of 9/11, US forces, in support of many European forces, attacked Afghanistan, the biggest suspect of Al-Qaida home-base. Later, in 2003, US force s invaded Iraq. Here the culprit was Saddam Hussein, who was declared an agent of Al-Qaida. Since then, North Korea, Iraq, Syria and Pakistan have been the targets of US in its war against terrorism. This war, one way or the other, is weakening both Al-Qaida and US economy.In retaliation to US invasion of Afghanistan and Iraq, Al-Qaida’s race to get hold of WMD have intensified. What this war has in stored for our future is a big question mark for us. To understand what different experts have to say about it, a project is initiated, in which diplomats, critics, politicians, journalists and policy makers will be surveyed, using Delphi technique. First of all, through emails, letters and visitors, all these participants will be selected, based upon their availability, level of involvement in current affairs, especially war against terrorism, critical insight and reputation amongst the colleagues.Once their participation will be confirmed, all of them will be officially communic ated about the issue to be discussed, which is the sensitivity of WMD, and possible targets of Al-Qaida attacks in US. Major research will carry around: the importance of WMD; whether or not Al-Qaida has one of it; possible target of Al-Qaida’s attacks in US; security levels in US; and response of US nation towards US policy of war against terrorism. Major assumptions will be taken based on the trend analysis, by monitoring team.Major targets will be nominated based upon following factors: Location (geographically and strategically); Importance (economic and defense); Security (national and nominal); Population (distribution and class); Impact (economically and socially); and Urgency. These factors will further be classified based upon the response from the experts. All the participants will be allowed to make any assumptions, which should be communicated before the submission of questionnaire. Major questions for the first round will be: 1. Is Al-Qaida a threat to US, or a t icket to failing states?2. Are Weapons of Mass Destruction in safe hands? 3. Does Al-Qaida have Weapons of Mass Destruction? 4. Are Al-Qaida attacks consequences of US policies? 5. What could be the purpose of Al-Qaida’s attack in US? 6. Can US sustain Al-Qaida’s attacks? 7. What could be the possible target of Al-Qaida? 8. Is US national strong enough to stop Al-Qaida’s attack? 9. How concern is US nation about terrorism? 10. Is Al-Qaida making its roots in Americans? References Bjil R (1992). â€Å"Delphi in a future scenario study on mental health and mental health care† in Futures Vol 24, No 3, pp 232-250Brown B (1968). Delphi Process: A Methodology Used for the Elicitation of Opinions of Experts Santa Monica: The RAND Corporation Foreign Policy (2010, January 25th). Al-Qaida’s pursuit of Weapons of Mass Destruction. August 9, 2010, from http://www. foreignpolicy. com/articles/2010/01/25/al_qaedas_pursuit_of_weapons_of_mass_destruction Masini, E (1993). Why Futures Studies? London: Grey Seal Steinitz, Carl (2003) Alternative futures for changing landscapes. USA: Island Press Woudenberg F (1991). â€Å"An Evaluation of Delphi† in Technological Forecasting and Social Change Vol 40, pp 131-150

How Reading Helps Writing College Papers of Any Complexity

Reading and writing are interconnected. They mimic and support each other and these two skills need to be practiced together for academic success. If you want to improve your writing, reading will help you do it. What’s more, science and research back up this claim. Here’s exactly why you should start reading more, and how it is connected with writing. Learn by Example Monkey see monkey do. Reading various stories and texts will expose you to many different writing styles, tone, and fluidity. Great writing is wonderful to try and emulate in your own way, but keep in mind that it takes the time to develop excellent writing skills. You won’t just read one or two fabulous texts and start producing masterpieces. Even poorly written papers, books, and entries will teach you something. They will set the example for what not to do, which is very useful. No matter what, reading will widely help you cultivate your own style of writing. Increase Your Vocabulary Just as reading exposes you to different ways of writing, it will also expose you to new words, plus ways to use words that you already know. Increasing your vocabulary will help with your writing because you will have a varied way to express yourself. It also makes your writing sound more educated and authoritative. Gain Prior Knowledge It’s well known that reading opens up a whole new world. There is so much to explore through text that is both fiction and nonfiction. By reading, when you go to write, you will have some background knowledge on certain subjects because you have read about them. You can use this for inspiration and to make your writing better. Get the Mechanics Down Reading shows you a lot about style, vocabulary, and different subjects. All of these things are useful when writing. What reading also shows you is how to use the tools necessary to write a complete paper. These include punctuation marks, phrases, and grammar; everything that is important and hard to master. You don’t need to specifically study what an author is doing to reap the benefits (although you can if you want to!) of starting or continuing to learn mechanics. Just by making yourself a little more aware of them will be enough. Making Sense of It All Although the connection between reading and writing may not be difficult to see, it’s hard to say which one helps the other. The main idea is that they both help each other: reading helps writing, and writing helps reading. It’s much like the old question of which came first the chicken or the egg? Here we have mainly focused on the effect of reading on writing, and the research and annotated observations have shown us that it is a great one. So what are you waiting for? Pick up the next book you see, and the one after that, and you will see your writing going up, and up, and up.

Review Of Transgender Bathrooms - Free Essay Example

Sample details Pages: 2 Words: 741 Downloads: 3 Date added: 2019/08/07 Category Society Essay Level High school Tags: Transgender Essay Did you like this example? I am going to talk to you about transgender bathrooms. I am going to talk about where it is all happening. What some people are thinking about it. Don’t waste time! Our writers will create an original "Review Of Transgender Bathrooms" essay for you Create order How it is affecting various places. I am also going to talk about. People all over the world are changing their genders. This is known as transgender. People are saying that they were born in the wrong body. This is why they are changing their gender. People have the right to do it and it is their choice. But there are some problems coming up with people changing their genders. People do not want to be treated any different, and they should not be according to the Human Rights Act. Everyone should be treated the exact same no matter what skin color they are or what gender they are. Other problems that are coming up are that transgender people are easily discriminated. They think that there should not be any labels on bathrooms, and that is the main topic I am going to talk about in this paper. Some of the first states to pass transgender bathroom laws were Texas, California, New Mexico and Seattle. These laws started passing in 2012, and the fight to pass more laws on transgender bathrooms is continuing to this day. It is happening across America. Every single state in the United States of America is trying to get a law passed legalizing transgender bathrooms. They are not just trying to pass laws like these in public places, like Walmart and fast food places, but they are also trying to pass the law in public schools as well. The legalizing process has caused many arguments between people in the last few years. Many have had to bring their fights to court. One student in a public school struggled to find acceptance from his school when he transitioned from female to male. He was not allowed to use the male restroom even though he identified as a male. This fight found its way to the court systems, and it became one of the first school cases that was brought to court on tr ansgender bathrooms. The case became known as G.G. vs. Gloucester County School Board, and it began on March 2, 2017. Gavin Grimm is seventeen years old and he goes to Gloucester County, Virginia (Nako Lindsay N.D). He filed this lawsuit against his school because he felt like the bathroom policy at his school is unconstitutional under the Fourteenth Amendment. They court has not come to a conclusion on this case yet to this day. People like Gavin who struggle with gender confusions are having to fight really hard for their human rights. Some of the pros to getting a non-labeled bathroom is that it does not matter who is going in what bathroom. People can just go in to whatever bathroom that they are most comfortable in. On the other side of this, people believe that rape could happen more easily due to the fact that men and women will be sharing the same bathroom. However, facts have proven that statement wrong. There has been no increase in rape or sexual harassment in the transgender bathrooms. In my own opinion, I think that there should be three separate bathrooms. One bathroom for the transgender population, one for men, and one for women. I do not see this as discrimination. I think it is a good compromise for these people who do not feel comfortable using the appropriate bathroom. This gives them a safe place to go without feeling uncomfortable. They will not receive back lash from those who do not agree with their situation either because they will not have to share a bathroom with those kinds of people. In conclusion I have talked about the change of transgender bathrooms in our country. I have talked about how they have been trying to change them in all public places. I have also talked about some of the cases that have come up due to this change, and how it argues against the constitution. I talked about some of the pros on cons to the situation. I stated to you some of the first states that have let this bill pass, I also gave my opinion on this topic. Transgender bathrooms is a debate that will continue to go on for many years to come because there are many sensitive factors that play into the passing of this bill