Benchmark - Executive Summary On IKEA

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Ira Hoekwater

Executive summary.doc

Summary

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Running Head: EXECUTIVE SUMMARY

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Executive Summary

Ira Hoekwater

BUS 485

Prof. Miller

Analytical findings

This course has helped me to understand how a company is analyzed. Company analysis

is significant because it aids the firm in obtaining its strategic insight. Strategic planning offers

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Similarly, it can lead to information overload hence affecting the company's results. Corporate

strategy is created by the senior-level management of a diversified enterprise. The method

illustrates the intended plans of the organization in the form of diverse enterprise and product

lines.

Step to create a competitive advantage.

The objective of creating a competitive advantage is to differentiate itself from the

competition. In the competitive business world, especially in the modern market, there is every

advantage in establishing an organization at the top. The steps to create a competitive advantage

are to create strategic planning, extensive research, and marketing commitment to gain a

competitive advantage. IKEA displays thoughtful consideration in its mission statement. The

mission statement states, "To create better everyday life for the many people". IKEA's corporate

plan and enterprise model are consistent with the assertion of its vision.

IKEA's mission statement affirms that "Our business idea supports this vision by

providing a wide variety of well-drawn, operational home outfit items at low prices that makes

several people as possible to afford them" (business strategy hub). Similarly, it can be replicated

by the practicality that the business idea of the company embraces its dreams by offering a

variety of empirical solutions and well-created home furnishing products and affordable prices

enable it easily accessible and cost-effective to all customers. An organization's mission

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the structure of regular decision-making that demonstrates a bigger vision, setting up a route for

the exercise, and amplify business environmental effect solutions. IKEA today is the biggest and

leading home outfit merchandiser on the globe. It has more than three hundred and eighty stores

and propels the furniture market in economically developing countries ( Business Strategy Hub,

2019). IKEA is well known worldwide for its innovatively designed furniture and low prices.

However, the biggest challenge that IKEA needs to improve on is harmonizing product prices in

all the countries it has expanded to, especially in China, where the prices are too high.

Corporate-level Strategic alternative

The strategic option can be utilized or suggested to evaluate and assess IKEA to carry out

SWOT assessment. In this case, they evaluate the strengths, weaknesses, opportunities, and

threats of an organization. This particular strategic option handles concerns or challenges an

organization may experience. For instance, creating a SWOT assessment for IKEA possesses the

strength of the client foundation through various retailing. SWOT analysis is beneficial because

it will enable IKEA to understand its business and create business objectives and strategies for

attaining them. However, SWOT analysis can lead to too much structure resulting in poor

decision making.

IKEA has important bargaining power in retail engagement. The pros of evaluating and

assessing a company included; obtaining the true value of the business and a better

understanding of company assets. Although, it is expensive and can create trust problems.

statement is based and built based on its vision and core values defined for the firm, depicting the

entity's plan of action and strategy to attain the specified vision from a forecast view. In planning

for the future, IKEA's goal is to create sustainable long-term growth for the ultimate benefit of

manufacturers, customers, and employees (business strategy hub).

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of values. Another leadership development is to incorporate the values into the hiring process. It

is just as important to select candidates culturally compatible with IKEA’s organization to find

candidates that suit the appropriate level of experience and skill set.

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How to finance a strategic alternative

It takes a lot of capital to run a company. Funding can take various forms, ranging from

human capital and labor to economic capital. A business can use two forms of capital to fund

operations: debt and equity. The responsible method of corporate finance involves identifying

the most cost-effective balance in debt and equity (Boyte-White, 2019). IKEA could either use

either debt or equity capital to raise money to fund its strategic alternatives. Often referred to as

debt financing is debt assets.

Debt capital funding emanates when an enterprise borrows funds and agrees to settle the

debt at a particular date set the borrower. Credits and bonds are the frequently used types of debt

that an enterprise utilizes, there are two popular ways that vast companies used to drive their

expansion strategy and finance upcoming projects (Boyte-White, 2019). But equity capital is

developed without lending but by vending common stock shares. If it is not financially viable to

borrow more debt, an enterprise generates capital by vending extra shares.

Leadership developing plan

Values explain the core of a business. The core values, mission, and vision must always

be revisited in the first order of business. Those three identity elements describe what a business

believes, stands for and respects more than income, where the business is going, and why the

company exists. One of the leadership development plans is to live by example. Leaders are

always watched. It is worse to set core values and then fail to comply with them than not to set

core values at all. One step is to teach the values through orientation and training. Simply

sending an email or a report listing core values, cultural vision or gravitating them on coasters is

impractical, assuming everyone will adopt them. Formal training communicates the importance

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References

Bhasin, H. (2018, Sep ). Marketing Strategy of IKEA. Retrieved from

https://www.marketing91.com/marketing-strategy-ikea/

Boyte-whte, C. (2019, Sept) Top Two Ways Corporations Raise Capital. Retrieved from

https://

corporations-can-raise-capital.asp

www.investopedia.com/ask/answers/032515/what-are-different-ways-

Business Strategy Hub. IKEA- Vision & Mission Core Value (2019). Retrieve from

https://bstrategyhub.com/ikea-vision-mission-core-values/