IKEA- planning

IKEA - Operational Plan

Planning is an important part of any companies culture. Even though there are multiple objectives and planning sessions, strategic and operational plans form the two basic and necessary pillars for the growth of any organization. Every company in the world has a strategic as well as operational plan.

Strategic plan of an organization sets the direction. It defines the mission, vision, high-level goals and the planned strategies to achieve those goals. Usually these documents focus their attention over a couple of decades. On the other hand, operational plan is more near sighted. It focuses on what the organization will work on in the near future. These revolve around the next fiscal year of so. Both of these plans focus on the organization’s corporal objectives which are built around around their vision and mission statements. Vision is usually a one liner that inspires customers, stakeholders and every employee to focus on the planned goals, whereas the mission statement communicates these goals to everyone with a vested interest. This includes stakeholders, employees as well as customers. These in combination provide an overview of a company’s purpose and objectives.

For an organization as huge as IKEA these plans become more complex. IKEA Group is one of Sweden’s best-known companies that spans over multiple continents. IKEA is a great example of a company that effectively aligns it’s business model and operating model. This model is very detailed and is the backbone of IKEA’s grand success. With this enormous amount of operational scale, IKEA’s business strategies have also evolved over time. Over the years IKEA has underwent major changes to accommodate the needs of their global customers. IKEA also had to re-strategize during the global recession of 2008. It repositioned itself. It designed a strategic long-term growth plan and many such multiple efforts. Even is such troubled times it successfully managed to keep its business and customer base intact. It’s success can only be attributed to its planning and management.

It has stood by it’s basic vision “To create a better everyday life for the many people”. The business idea is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”. This vision has been the major attraction for its widespread customers. Products of IKEA focus on affordability, sustainability and good design. These tenets have lead to the furniture’s widespread popularity and usage. The organization stands by its mission “To provide a range of home furnishing products that are affordable to the many people, not just the few elite”. Its unique supply chain and business strategies and impressed not only its customers, but also its competitors across the world.