Answer 1:- IKEA is
a multinational organization that designs & sells customized
furniture, kitchen appliances & home accessories as per the
customer requirement. The company mainly produces furniture of all
kinds & has certain departments which are responsible for
efficient & effective management such as Human resources,
Retail & Finance which are managed by Operations
Management.
The control of employees
& production process used by IKEA is explained
below:-
- The HR Department here is
accountable for the satisfaction of the employees & all the
stakeholders of the company which results in customer satisfaction
& control of the image in international markets.
- .Here IKEA uses operations
management decisions very seriously from purchasing wood/fabric,
hiring or training for workers/employees, planning/locating the
layout of the factory which helps the company in producing
affordable, functional & attractive furniture. Here the
management takes every account of quality management, supply chain
management, operations management, cost, capacity & lean
management in controlling overall resources.
- The production process management
used by this company is held in three-tier form as the
primary - which focuses on making available raw
materials at low cost, verifying the conditions of the market &
also analyzing the supplier to check the quality overall.
The secondary - here is the production of products
that IKEA designs with lease resources involved with the best
quality. The tertiary- here involves is supply
chain management of products into IKEA retail stores which is made
available to customers.
- IKEA uses several strategies to
control the employees/customers as well as the production process
in space as - Checking the facilities that are offered to
customers, -Inventory management strategies helped IKEA in growing
its business, -IKEA used to do it to yourself assembly method which
helps the company in reducing the cost in packaging &
management, -IKEA schedules operational strategies well which
aligns business & operating model effectively.
- Here the employees are controlled
in total involvement in the company by giving them the chance to
empower & promote accordingly with thier work, the lean
management helped IKEA in increasing the morale of the employees
thereby productivity in overall management.
Answer 2:- IKEA manage the
environmental risks by following ways:-
- IKEA uses lean management in making
environmentally friendly products in which the technique is used to
eliminate the wasteful activities involved in the process of
production.
- The new environmental policies
which are imposed by the government at global suggest the products
should be eco-friendly with this motive IKEA adopts the lean
production strategy to control the environment by reducing the
waste & negative effects on the industry.
- Here this strategy uses the raw
materials which are recyclable, reusable & reducible based on
renewable resources that don't harm the environment.
Answer 3:- The
competitive advantage is the strategy which is adopted by the
companies in recent days which is to outperform the competitors in
the market. Here the competitive advantage of the
corporation on its market gets affected in the following
means:-
- This affects the company in
controlling the competitors in the market by focusing on its
competitive prices.
- Here it helps in achieving the more
customers & market share in the market.
- The competitive advantage shows the
uniqueness of the company with brand loyalty that of the
competitors to face the competition in the market.
- Follwing are some
recommendations for the managers to the company I choose is IKEA to
improve this competitive advantage:-
- The company as IKEA must be clear
on what benefits thier product or service provided
by offering value & generating interest against the competitors
as pepper fry or so.
- IKEA as company must establish the
target market as who is purchasing from them &
how to cater to thier needs that of competitors.
- Here it's very important for IKEA
to assess the competitor's landscape by analyzing
the market environment to be the survival of the fittest.
- The company can choose any of the
strategies as cost leadership to be the
lowest-cost producer, differentiation strategy to
make it unique that of competitors in innovating &
Focus strategy towards the narrow target market as
cost focus or differentiated focus to make its products more
reliable than that of competitors.
- Another recommendation to the
company is to assess the natural resources that are restricted to
competitors, encourage highly skilled labor/workforce, accessing to
new proprietary technologies & make brand image recognition
with innovative ideas to curb the competition.