...Title Module Name Date of Submission Systems and Operations Management. 27/01/2015 Plagiarism is presenting somebody else’s work as your own. It includes: copying information directly from the Web or books without referencing the material; submitting joint coursework as an individual effort; copying another student’s coursework; stealing coursework from another student and submitting it as your own work. Suspected plagiarism will be investigated and if found to have occurred will be dealt with according to the procedures set down by the College. Please see your student handbook for further details of what is / isn’t plagiarism. By submitting this form and signing below, I declare that: I am the author of this assignment and that any assistance I received in its preparation is fully disclosed and acknowledged in this assignment I also certify that this assignment was prepared by me specifically for this course I certify that I have taken all reasonable precautions to make sure that my work has not been copied by other students I confirm that I have understood the College’s regulations on plagiarism I confirm that research resources are fully acknowledged Signature: Mounir TIZI Date: 26/01/2015 1 To be corrected by: Mr Deji Sotunde. By: Mr Mounir TIZI. 2 Abstract This paper focuses on highlighting some characteristics of the international home furnishing company, IKEA. Also, a discussion on the current operations of the company...
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...SUPPLY CHAIN MANAGEMENT TERM PAPER ON IKEA’S SOURCING, DISTRIBUTION STRATEGY AND ITS GREEN SUPPLY CHAIN MANAGEMENT BY: SUBMITTED TO: KANIKA MURARKA Dr. P R S SARMA 1226113122 MBA-IB IIIrd TRIMESTER INTRODUCTION IKEA Group (IKEA) is a global retailer of Scandinavian designed furniture and accessories founded in Sweden in 1943. It has operations in 44 countries across Europe, North America, Asia and Australia and is headquartered in Delft, Netherlands. It employs 13000 people and sells 9500 home furnishing products in 298 retail stores worldwide. IKEA recorded revenues of $36101.5 million during the financial year ended in August 2012, an increase of 9.8% over 2011. IKEA offers a range of furniture for living rooms, bedrooms, kitchens and children’s rooms. Its emphasis on providing home furnishing products at low prices has been the main reason for the widespread customer acceptance of its products which, in turn, has facilitated its growth in various geographies. The company designs, manufactures, transports, sells and assembles its merchandise to minimize cost at each level. To help keep prices low, the group ensures that production equipment and raw materials are used efficiently. Customer involvement also contributes to low prices. IKEA relies on customers to choose, collect...
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...IKEA: Ecommerce Expansion/ IT Capacity Management Information System Initiative LASA 1 Organizational Structure IKEA currently holds the position as the world’s largest furniture retail chain, with 332 locations, in 32 countries worldwide. IKEA is operated and owned by an array of no-for-profit corporations. The Organizational Structure is divided into two main entities: Franchising and operations. Many of IKEA’s operations, including the manufacturing and design of products, the managerial operations, and the supply-chain processes, are overseen by INGHKA Holding, which is private, for-profit Dutch Corporation. INGHKA Holding currently runs 235 of the IKEA stores, the remaining are operated and ran by franchises that are outside of INGHKA Holding. IKEA has differentiate themselves from their competitors, by satisfying the needs and wants of their consumers, with upholding a value proposition that is center on providing, high-quality products (furniture), at affordable prices. IKEA’s value proposition differentiated them from their competitors, secured competitive advantage and positioned themselves as the leader in furniture retailer, on a global level, by their value-based services, and marketing mix that emphasizes on areas such as: Location, Merchandise, Store Format, Market Communications, and Service and Selling Environment, which produced a remarkable “brand image”; “The essential role of brands is to differentiate a product or service from others in satisfying a...
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...Supply Chain Management – Assignment (Wal-Mart & IKEA) Are they involved in strategic alliances with major trading partners? If so, how and for what purpose? Strategic Alliances Definition of Strategic Alliance: Strategic alliances are inter-firm collaborative business models that allow firms to create value by sharing resources, obtaining market influence or access novel markets. Simply put, strategic alliance allows for projects where companies can share their resources and risks for an agreed period or project. Resources such as distribution chains, development of products, technologies or services become communal amongst alliances. In recent times, the potential positive effects of alliances are highly regarded by firms, thus, leading to an increasing trend in entering into strategic alliances with the aim of constructing stable collaborations. While the successes of alliances are plentiful, there is also evidence of many undesirable business outcomes. This section of the research paper will discuss and analyze the applications of strategic alliance for global giants in the retail business: IKEA and Wal-Mart. IKEA’s Strategic Alliances: IKEA aims to provide consumers with low-price products through fostering long-lasting business relationships and networks with its main suppliers. These relationships are a pivotal part of the development of IKEA’s products and technologies. IKEA tends to push interactions with their suppliers as far upstream as...
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...Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP conference Jens Hultman1, Susanne Hertz1, Rhona Johnsen2, Thomas Johnsen2 1: Jönköping International Business School, P.O Box 1026, SE-551 11 SWEDEN E-mail: jens.hultman@ihh.hj.se, susanne.hertz@ihh.hj.se Tel: +46 0(36) 10 10 00 2: Audencia Nantes School of Management, 8 Route de la Joneliere, BP 31222 – 44312 Nantes Cedex 3, France. E-mail: tjohnsen@audencia.com; rjohnsen@audencia.com Tel: + 33 (0)240 37 46 25 Abstract This study explores the dynamic process of global sourcing development through a case study of the Swedish home furnishing giant IKEA and its supply network concerning the PAX wardrobe system. The paper provides a synthesis of the existing global sourcing literature by dividing this growing body of research into three major themes: globalization processes and stages, motives/drivers, and organizational design and management. Moreover, the paper integrates the global sourcing literature with the established literature on the internationalization process of firms. Comparing the existing research on global sourcing and internationalization, we propose two research questions focused on: (1) the ways in which the IKEA global sourcing and supply chain development process resembles a linear stages process, and (2) the principal drivers of the development of global sourcing within IKEA. Relating the findings of the global sourcing process in the case of IKEA, the paper suggests that the...
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...Nowadays customers more concern about how long their ordered product reach to them rather than worrying how the company will deliver the products. As a consequence, time can be used as an indicator in distribution logistic. This research is conducted to explain the consequences of distribution logistic and the way IKEA will gain competitive advantage by utilizing it. We will identify the key elements in distribution logistics and find the competitive advantages of IKEA through analyzing the case study of IKEA and they are: speed, dependability and last but not least is flexibility. Keyword: IKEA, Distribution logistic, Competitive advantage. INTRODUCTION 1.1 BACKGROUND Logistics management is the governance of supply chain functions. Logistics management is important not solely to producing and assembly industries, that are goods-oriented, however conjointly to selling, transport and alternative distribution or service- oriented industries. Daskin (1985) defined logistics as “the design and operation of the physical, managerial and informational systems needed to allow goods to overcome time and space”. Another definition promulgated by the Council of Logistics Management Ballou (1992) is: the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements Moreover,...
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...PROFESSIONAL DIPLOMA IN INTEGRATED LOGISTICS & SHIPPING MANAGEMENT DECLARATION OF ORIGINAL WORK I, RAJU A/L NALLO (NRIC NO: 810523-10-6053), student Matrix No: PX110511TS619 declare that the project paper title is “A STUDY ON IMPROVING AND CONTROLLING THE RISK OF INJURY TOWARDS EMPLOYEES AND TO REDUCE THE AMOUNT OF MANUAL HANDLING WORKS IN IKEA HANDEL SDN. BHD.” is the result of my own research except as cited in the references. The project paper has fulfilled the requirements as needed by University Teknologi Malaysia – SPACE. Thank you. Yours sincerely, …………………………. Raju A/l Nallo (NRIC NO: 810523-10-6053) ACKNOWLEDGEMENT Praise to mighty God. I have managed to complete this research successfully. I wish to express my sincere gratitude to all individuals who have supported me at every stage of my graduate schooling here at University Technology Malaysia-SPACE. Foremost, I am deeply indebted to my adviser Mr. Soomasundaram for the continuous support during my Diploma study and research, for his patience, motivation, enthusiasm and immense knowledge in the subject. His guidance helped me all the time during my research. I could not have imagined having a better mentor for my Diploma’s program. The stage I have grown today is fully attributed to my adviser without whom I might have encountered many troubles in pursuing my stay at UTMSpace and surely wouldn’t have done this fruitful research and practical experience. I have really enjoyed those long...
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...CONTENT Introduction – IKEA’s background……………3 IKEA’s Supply Chain Analysis……………….3-4 IKEA’s Logistics Activities……………………4-6 IKEA’s Internal Environment…………………6-7 IKEA’s External Environment…………………8 Problems and Solutions……………………….8-10 Conclusion…………………………………….11 References…………………………………….12 Introduction Since first founded in 1940s, with its mission statements to “create a better everyday life for the many people”, IKEA’s business idea has achieved great success. In this report, we would mainly focus on IKEA’s logistics function, We begin by analyzing IKEA’s supply chain, adopted strategy, the internal and external environment. Second, we investigate into IKEA’s logistics operations. At the last part, we discuss the problems of business and logistics aspect IKEA faces, and give our advices to solve them. IKEA’s Supply Chain Analysis For the IKEA’s supply chain, it includes suppliers, manufacturers, retailers and customers. Firstly, IKEA has thousand amounts of suppliers provide raw materials and components for the manufacturing acticities globally. It also has cooperation with a number of suppliers as joint owners or financiers in Poland, Slovakia, Russia and China such as Konakovo factory (Russia) providing four different items for IKEA’s Moscow store, Priozersk factory (Russia) providing five different chair models, RPOFIm (Poland) providing three different types of office chairs etc. This can ensure the continuous flow of manufacturing services...
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...perspective on supply chain measurements Stefan Holmberg The Authors | Stefan Holmberg, Division of Logistics, Lund University, Sweden Abstract | Both practitioners and research scientists have noted a number of problems regarding measurement activities during the past decade. The problems reported suggest that measurement activities are fragmented both within and across organizations. Expands on a systems perspective on supply chain measurements and describes how problems can be communicated, understood and managed by developing methods and tools for describing interrelationships within supply chains. Empirical evidence from a case study of a Swedish home furnishing business supply chain provides data suggesting that firms within a supply chain cannot simply be categorized as either having adopted systems thinking or not. Rather, both structured models indicating a high degree of systems thinking, and problems showing fragmentation, are present. A performance model, which is used to reflect the systemic structure of an underlying supply chain and a potential integrator, is introduced and suggested as the focus of future research initiatives within supply chain measurements. Article type: case study. Keywords: Supply chain, Measurement, Systems integration, Performance measurement. Content Indicators: Research Implications** Practice Implications** Originality** Readability** International Journal of Physical Distribution & Logistics Management Volume 30 Number...
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...IKEA’s Marketing The vision of IKEA is “to create a better everyday life for the many people.” IKEA’s vision goes far outside of just providing home furnishings, but to “create a better everyday for all people impacted by our business.” The company’s goal and mission is “to offer a wide range of well-designed, functional home furnishing of products at prices so low that as many people as possible will be able to afford them.” (IKEA website, 2015). IKEA’s products, services and attributes bring value proposition by providing products and services at a low cost then its competitors as its highest priority, well-designed modern furniture to a mass group of consumers through a distinctive shopping experience then its competitors. Not only do they provide affordable home furnishings, they make consumers shopping experiences in their retail warehouse a unique experience. They showcase and market their products by having consumers walk through a path in their retail store displaying all their products in realistic home setups first before they go to their warehouse to pick up their products for purchase. IKEA provides a one stop shop for consumers by providing daycare services while consumers shop and they provide a cafeteria with a select variety of food options at a low cost. (IKEA website, 2015). IKEA’s marketing communication strategy...
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...IKEA ANALYSIS REPORT Dan Pinzon Argosy University Abstract This report explores the notion of values-based service, and how a company like IKEA creates value for customers and other stakeholders. In order to better understand the IKEA environment we will look at IKEA’s marketing strategy, beginning with its products, services, and other attributes that contribute to its value proposition. Following, exploring how IKEA creates a well-defined market position, and how they differentiate their offerings from competitor offerings. Included in this report is an assessment of IKEA’s strategy by analyzing its sources of value in its value chain, an explanation of its intangible products and benefits, and why IKEA considers its customers to be critical stakeholders. This report concludes with an establishment of several key performance measures that enables management to integrate IKEA’s values in its operations. Introduction In 1943 Swedish entrepreneur Ingvar Kamprad founded the now furniture giant IKEA. He began by going door to door selling pens, wallets, and watches. When he began selling his low priced furniture, his competitors immediately tried everything to stop him. The local suppliers were banned from selling him raw materials, and he was not allowed to showcase his furniture in industry expeditions. So Ingvar began to innovate, building his own furniture and buying raw materials from other countries. As the company grew globally, IKEA realized the need to adapt to...
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...production and distribution. • “This ‘fast fashion’ system depends on a constant exchange of information throughout every part of Zara's supply chain—from customers to store managers, from store managers to market specialists and designers, from designers to production staff, from buyers to subcontractors, from warehouse managers to distributors, and so on.” • Zara has made enormous efforts to ensure that operational procedures, performance measures, and even store and office layouts are designed to make information transfer easy. one of core activities for Zara to leverage its ‘fast fashion’ system. • It can therefore be concluded that information management is I.3 Any thoughts about the company? 135 IKÉA Purchasing Ikea Trading Ikea Prodcut Lines Sweden Distribution D/service D/center Sales Region, country, stores The four basic functions of the IKEA Group IKEA Automated Warehouse 1(240p_H.263-MP3).flv IKEA Automated Warehouse 2(360p_H.264-AAC).flv 136 IKEA Trading • 46 Purchasing Bureau, In 32 countries • 1 300 Suppliers in 53 countries • 9 500 manufactured products (a catalogue of 5000 products) • Purchasing policies: • Low cost country • Take a dominant part in the choice of technologies used by supplier • Final product are designed in coordination with the customers • IKEA takes a major position in the turnover of the supplier and maintain continuous • Pressure on Price • Pressure on quality 137 Purchasing...
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...directly at IKEA and one of its suppliers. The best defense is to take this opportunity to fight back. • Since IKEA already signed agreement on not using child labor, they can’t ignore the challenge this program may bring. • IKEA has gained some positive accomplishments to the child labor issue and took actions to eradicate child labor. It is a good chance to further publicize their efforts. • Marianne should prepare herself well by analyzing the situation of that year (May 1995) before going to the program; Rangan Exports should be investigated by both independent 3rd party auditors and IKEA before the program. • It is the opportunity to communicate with the public regarding Ikea’s long-term strategy with accurate milestones to prevent child labor, in response to their social responsibility. • If Marianne is not outspoken, an eloquent person from the senior management who is familiar with IKEA’s child labor issue and company’s stand should go to the program. 2. Should IKEA continue to deal with Rangan Exports? • No. Rangan Exports apparently violated the contractual commitment it had made not to use child labor. Legally speaking, IKEA should terminate the contact right away. • In 1994 after the Pakistan child labor issue, IKEA already had a clause to all supply contracts, stating that if the supplier employed children under legal working age, the contract would be cancelled (a “black-and-white” clause). • By halting the contract with Rangan Exports, IKEA sends a clear...
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...Supply Chain Sustainability OMGT 2190 Individual Research Report Student Name: Student ID: Lecturer Name: Course ID: Due Date Table Content 1.0 Introduction 4 2.0 Literature Research 4 2.1 Summary of the literatures 4 2.11 Kenneth, M. A, Onyeka, K. O & Paul, N. (2008) - Journal of Business Ethics 4 2.12 Mette, A & Tage, S. (2009) - Supply Chain Management: An International Journal 5 2.13 Francesco, C, Pierpaolo, P & Barbara, S. (2008) - Journal of Cleaner Production 5 2.14 Jorgensen, H, Peder, M & Margaret, J 2003 - The Word Bank Group & IFC 6 2.15 Esben, R. P & Mette, A. (2006) - Journal of Public Affairs 6 2.2 Group materials under meaningful themes and critical discussion 7 2.3 The practical and theoretical implication of the findings 9 2.4 Evidence from published cases and empirical studies 11 2.5 managerial recommendations in translating CSR in global SC into practice 12 3.0 Conclusions and suggestions for future research 14 4.0 Reference List 15 Executive Summary Integrated supply chain has becoming a significantly important role in the competitive landscape because companies are searching for strategic benefits. Apart from the advantages derived from those more coordinated supply chains, certain social obligations become a concern to business. In reality, the codes of conduct in terms of the CSR are developed by many organizations, especially the buying companies, in order to manage the business behavior...
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...Important Test questions –B200B Question (1): Differentiate between the following: 1. Marketing and selling The Answer: Marketing: Marketing means working with markets to bring about exchanges for the purpose of satisfying human needs and wants. Marketing must be understood not in the old sense of making a sale – selling – but in the new sense of satisfying customer needs. Selling Selling or promotions are part of a larger marketing mix, the concept is typically practiced with unsought goods – those that buyers do not normally think of buying, such as encyclopedias and funeral plots it starts with the factory, focuses on the company’s existing product and calls for heavy selling and promotion to obtain profit sales. Consumers will not buy enough of the organization’s products unless it undertakes a large scale effort in selling and promotion. A selling oriented organization thus focuses on short terms results; because they care only for their sales not for customer’s satisfaction and they are not searching or looking for long term relationship with customers. 2. Goods and services Answer: Goods and services Goods (tangible, stored, production precedes, consumption, low customer contact, transported, quality is evident) Service (intangible, can't be stored, production and consumption are simultaneous, high customer contact, can't transported, quality difficult to judge) 1- Tangibility: - Goods are tangible and services are intangible...
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