IKEA operations management - 4810 Words

Operations Management Critical Evaluation of Relevant Issues - IKEA case ï ¿ ½ TABLE OF CONTENTS 2Executive Summary ï ¿ ½ 2Introduction ï ¿ ½ 2Company profile and Situational Analysis ï ¿ ½ 3Growth and profitability ï ¿ ½ 5Culture ï ¿ ½ 5Goals ï ¿ ½ 5Competitors ï ¿ ½ 5SWOT analysis ï ¿ ½ 6PESTLE Analysis ï ¿ ½ 6Political Analysis ï ¿ ½ 6Economic Analysis ï ¿ ½ 6Technology Analysis ï ¿ ½ 7Sociological Analysis ï ¿ ½ 7Legal Analysis ï ¿ ½ 7Environmental Analysis ï ¿ ½ 7Input-Transformation-Output ï ¿ ½ 8Corporate Objectives ï ¿ ½ 9Quality ï ¿ ½ 10Speed ï ¿ ½ 10Dependability ï ¿ ½ 10Flexibility ï ¿ ½ 11Cost ï ¿ ½ 12Polar representation ï ¿ ½ 12Process Design ï ¿ ½ 12Process type ï ¿ ½ 15Cost ï ¿ ½ 16Flexibility ï ¿ ½ 17Quality ï ¿ ½ 17Process Design - Product Design ï ¿ ½ 18Recommendations ï ¿ ½ 19Conclusion ï ¿ ½ ï ¿ ½ EXECUTIVE†¦show more content†¦IKEA has also used extensive manual work in its planning processes and the planning was based on fragmented and unreliable Planning information. Hence, there was a lack of trust between different parts of the supply chain, which even further have enhanced the bullwhip effects in the IKEA supply chain. Other problems related to the supply chain performance was difficulties to get enough attention of data maintenance, the lack of proper follow-up tools to monitor forecast deviations, hard to change mindsets among users, no synchronization of order and stock data, to name but a few. To overcome the difficult situation, IKEA initiated a program (cluster of projects) aiming to taking better control of its supply chain, and enhance performance in terms of delivery service and costs. A new global planning concept was developed and is currently being implemented. Its cornerstones are mutually integrated planning processes, a centralized planning organization, focus on data quality and use of advanced software support. GROWTH AND PROFITABILITY Global sales in Fiscal Year 2011 were 25.2 Billion Euros (23.5Billion Euros in FT 2010). The operating income in FT 2011 was 2.9 Billion Euros, an increase of 0.2 Billion Euros of FY 2010. Fig: IKEA Operating Income Fig: IKEA Revenue IKEA generates 79% of its sales in Europe, 15% in North America and only 6%Show MoreRelatedOperation Management on Ikea1851 Words   |  8 Pagesobjective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strength and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goodsRead MoreOperation Management--Ikea1925 Words   |  8 PagesIKEA History and Company Information IKEA retailing with its Sweedish roots, is based on a franchise system. Inter Ikea system BV is located in Delft, the Netherland being the owner and franchiser of the concept IKEA. (www.ikea.com) The company aims to sell furnitures for 10 to 30 percent less then other stores ( source - stevension ). Every Ikea employee still follows the vision quotes of Ingvar Kampard to create a better everyday life for many people. During 2010 global sales as reportedRead MoreOperation Management Ikea6167 Words   |  25 Pagesfollowing assignment is based on operations managements within IKAE. The aim of this unit is to analyse the operations functions within the organisation by understanding strategic operations management, the operations process and planning and control. â€Å"Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distributionRead MoreIkea Operations Management2832 Words   |  12 PagesOperations Management:IKEA IKEA’s BUSINESS IDEA (www.ikea.com): â€Å"We shall 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. Introduction At the outset, it may be useful to characterise IKEA in terms of the characteristics of demand (also known as the four Vs, see Slack et al. p 20). First, IKEA is clearly a high volume operation – as indeed most international retailers are – which lendsRead MoreOperation Management of Ikea2136 Words   |  9 Pageschain approaches, the firm will increase the benefits of supply chain network. In this report we have focused on supply chain inventory management and technology selection practices and how it is beneficial for the firm. In the firm operations are linked with different strategies. For example the change in supply chain has an effect on inventory management as well as technology selections. At the end we have given some recommendations and conclusion for increasing its efficiency by supply chainRead MoreIkea Operations Management3070 Words   |  13 Pageshttp://fp05-527.web.dircon.net/ikea_company_profile.html Profile: ikea IKEA is the world’s most successful mass-market retailer, selling Scandinavian-style home furnishings and other house goods in 230 stores in 33 countries and hosting 410 million shoppers per year. An acronym for founder Ingvar Kamprad and his boyhood home of Elmtaryd, Agunnaryd, IKEA began operating in Sweden in 1943 and continues its original ethos based upon cost obsession fused with design culture. No design, no matterRead MoreHow Does Ikea Approach Operations Management?6114 Words   |  25 PagesThe main purpose of this paper is to focus on the how IKEA Company approached its operation management. Particularly, it covers the following: how the company establish and manage customer requirements, secondly how does these customers requirements used for the company’s product and services, then, third covers the operational systems and processes it used in its operation, fourth consists of capacity planning, process layout, and product services/scheduling, inventory a nd projects were managedRead MoreOperations Managment14673 Words   |  59 PagesKey operations questions Chapter 1 Operations management âž ¤ What is operations management? âž ¤ Why is operations management important in all types of organization? âž ¤ What is the input–transformation– output process? âž ¤ What is the process hierarchy? âž ¤ How do operations processes have different characteristics? âž ¤ What are the activities of operations management? Chapter 2 Operations performance âž ¤ Why is operations performance important in any organization? âž ¤ How does the operations function incorporateRead MoreThe Operation Strategies And Cost Leadership1399 Words   |  6 PagesSummary This business report discusses and explores the operation strategies and cost leadership of both IKEA and Fruity fro-yo and how it relates to business operations. The success of the business will also be assessed through the identified operations strategies that each of the businesses applies into their operations. This results in increased operations efficiency, which is discussed within this business report. Strategic role of management - Cost leadership Cost leadership: Cost leadershipRead MoreIkea s Market Tool For The Retail Giant Essay970 Words   |  4 PagesIntroduction: IKEA is a multinational group of companies, specialized in designs and sells home furniture (ready to assemble). They also sell accessories, bathroom kitchen items and lately they have offered food market in their retail stores around the world. It was founded by Ingvar Kamprad who born in southern Sweden in 1926 and who was listed as one of the world s richest people in 2013. The company is known by its modern (simplicity) design, cost control, operation details and continues product

Talent Management An Organization - 1464 Words

Talent management is a term that includes a large variety of different methods a company interacts with workers from training, coaching, succession, recruiting and performance. It is considered an umbrella term that all of the various talent strategies fall under. Talent management has become a major issue in todays’ job market with more companies beginning to understand the need to retain quality people in their workforce and have started to attempt changes in their talent strategies as the market has become even more competitive these days (TALENT MANAGEMENT,2015). OCBC is a publicly listed financial organization that has its main office in Singapore and has over 200 billion in assets and is the strongest of the world’s top ten strongest banks with a history of more than 80 years in Singapore. This organization has been given a number of awards over the years for Excellency. Some of these awards are most attractive employer, bank of the year, internal audit excellence, best managed board, best people manager are some of the awards the bank has received. The bank is known as not only for its discipline concerning risk management and credit, but also its methods of dealing with its talent. The bank has the same methods of dealing with its work force that it does in other areas of it business. The company has a number of ways it develops its workforce to attempt to create a win, win situation for the company and the employee. First the bank has a bank’s career best programShow MoreRelatedTalent Management : An Organization1202 Words   |  5 PagesIntroduction Talent is an advantage to a company. According to Blass(2009) talent management is the additional management, processes and opportunities that are made available to people in the organisation who are considered to be ‘talented’. Talent Management nowadays have a pivotal role in the companies because the stability and the reliability depends on that. With the talent management, HR is showing interest in the staff. HR role in the Talent Management HR has an important role in talent managementRead MoreTalent Management : An Organization2520 Words   |  11 Pagesrecent economic changes, talent management has become the important part of the human resource management as organizations are challenged for maintaining innovation and growth and the forecast predicts leaders are in search of anchors for their corporate ships. Leaders believe that talent management means maximizing business potential through people by selecting right people, develop their potential, build their commitment and support them with changing periods. 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This assists in the automation and simplification of an organization’s tasks, but most fundamentally, it aids in the laying down of a framework on which the management of human resource policies

Ideals of Democratic Citizenship in Funeral Oration by...

Ideals of Democratic Citizenship in Funeral Oration by Pericles When dealing with the extent to which Socrates is a good example for following the ideals of democratic citizenship, a good source to use as a point of comparison to his life is the principles laid out about that citizenship by Pericles in his Funeral Oration. In the Oration, Pericles brought forth certain ideas about Athenian democracy and how its citizens should live their lives in accordance with it. He held these views to be paramount and used them in association with the principles of Athenian Law to prove a persuasive point that Athenian democracy had to be one with the people to survive. Above all other ideals he held first the thought that politics was the highest†¦show more content†¦Furthermore, in the mind of Pericles, any citizen who did not take some part in the realm of politics was not just missing the core of Athenian democracy, but was essentially useless. This is so because Athenian democracy stood on the idea that people would take an active role in the g overnment that represented them in order to protect their freedoms, and anyone who shunned that responsibility was a detriment to society. The arguments that Pericles puts forth are persuasive in the sense that theoretically in order for a democracy to survive as intended (which is self-representation and majority rule) then people must take politics sincerely. Socrates, at the other end of the spectrum, saw politics as a wasted venture for him because his life was devoted to a quest for knowledge. He stated his way of life, which conflicts with that of Pericles model, to differ from that of the democratic system of Athens because he saw the government to be corrupt and the majority to not be just. Socrates did not bother to lead a life of servitude to the ideals of the state because he showed through his actions that an unexamined life without critical thinking was not a life at all. As is made clear by the admittance of Socrates himself, his defense plea is the first time he has appeared in a court of law, even by the age of seventy. Socrates life was dedicated to the pursuit of further comprehension and debate with the Athenian people on the deeper issues of life, not to a courtShow MoreRelatedEssay on Greeces Golden Age Under Pericles Rule3261 Words   |  14 Pagesintensify their dominance. The Delian League, which was the league Ath ens was associated with, continued to thrive. This allowed Athens the opportunity to create a democratic nation in which the people were provided with the freedom they continuously strived for. The individual that was determined to create a democratic nation was Pericles. He revised and renovated Athenian democracy. Pericles’s ultimate goal was to implement democracy. He worked hard to accomplish this goal and to change the AthenianRead MoreAncient Athens : The Birthplace Of Democracy1378 Words   |  6 PagesLemesis Reyes Sec: 27 Although, Ancient Athens is known to be the birthplace of democracy. Nevertheless, in this paper I argue that there are aspects that show that Athenians were not truly democratic because of the restrictions imposed on citizenship such as; age requirement, only males allowed, and the requirement of a birth measure meaning that double descent was required from both an Athenian mother and an Athenian father to be recognized as a citizen regardless of one’s birthplace. It is antitheticalRead MoreEssay on Prostitutes in Ancient Athens1571 Words   |  7 PagesProstitutes in Ancient Athens Works Cited Missing Ancient Athens was a highly polarized society in which citizenship meant everything. Citizenship permitted individuals to not only participate in the democratic government but also gave them access to all the rights and splendors of the city. A citizen controlled influence over slaves, foreigners and most importantly women. Athenian women were relegated to the status of child bearers and keepers of the household. There was no room forRead MoreEssay on Navigating Interstitial Spaces1910 Words   |  8 Pagescodified laws of the 1830s granted â€Å"dangerous freedom† to the individual, Americans managed to navigate interstitial spaces with assiduous virtue. This discussion will briefly connect threads from Aristotle’s Ethics, Plato’s Republic, and Pericles’ funeral oration to preface a more extensive examination of Tocqueville’s careful study of the institutions which reinforced virtue within America’s interstitial spaces. The conclusion will examine and evaluate the doctrine of â€Å"self-interest rightly understood†

Critical Analysis Of Organization Strategic Planning †Free Samples

Question: Discuss about the Critical Analysis Of Organization Strategic Planning. Answer Introduction In an organization, strategic planning is the management activity that is adopted with the aim of setting priorities, strengthening operations, and ensuring employees and other organizational stakeholders are focused towards achieving a common goal. It hence helps in the establishment the relevant agreements between the employer and the employees on the intended results and performance outcomes (Greg Hosie, 2014). The process thus helps in the assessment, adjustments, and evaluation of its direction in response to the ever changing business environment. In a systematic study,Haines (2016) points out that it is a disciplined effort aimed at producing fundamental actions and decisions that guides and shapes what the organization does, how, and why it does it with a focus on the future achievements. This paper presents a critical analysisof the strategic planning of Curtin University as a case study organization. Critical analysis of organization strategic planning The strategic planning and management framework of Curtin University is mainly composed of a critical analysis or assessment of the organization which provides an understanding of the organization current internal as well as external environments (Grant, 2016). It also has a strategy formulation phase in which a high development strategy is developed as well as a developed strategy execution plan where the former high plan is translated into more operational and action items. Lastly, it has an evaluation of sustainment management phase is done to evaluate and monitor the progress of the organizational strategic plans. One of the most adopted or developed strategic planning document which this paper will give a critical analysis is the Classical 4- Step strategic Approach to planning. It is a simple structure which helps an organization to holistically develop and implement its plans. It is composed of a four main steps or approaches in which the first step involves the situational analysis of the organization (Wheelen Hunger, 2017). Under this stage of development of a strategic plan, the company establishes its current reality or its present position. The assessment should be done honestly across all the key factors of the intended plan. Any errors resulting from the assessment may have significant implications in the future. The situational analysis provides an organization audit which helps in understanding the organization information concerning the organization set up, the performance of the organization as well as the problem areas which need to examined by looking into the organization hist ory as well as its profile, the previous and current organization strategies, the financial assessment and the organization governance structure. The second step of the approach outlines the vision or the direction of the organization. The plan outline s the mission statement of the organization as well as the purpose of the organization, the values, behavioral standards and the strategy of the organization competitive position the future of the organization is not only outlined under the mission statement but also under the vision statement of the organization (Wolf Floyd, 2017). This step also outlines the aims and objectives of the organization where the aims are complex and long term goals while the objectives may either be short term or long term development goals. This step is also very crucial in the development of an effective strategic planning document of an organization. It entails some of the most crucial information and if stated wrongly definitely the plans will be unachievable. The third step in this approach outlines the organization strategy development. The organization develops a well thought- through route map to guide it towards the future of the organization. The strategy development comprises of a comprehensive detail of actions and steps guided to help the organization to where it wants to go. It is also comprised of an introduction to the overall planning process as well as the team involved and resources used the goals and supporting strategies, the organization program portfolio, and implementation chronology as well as the risk management strategies and the monitoring and evaluation framework. Therefore, the strategy provides a pattern that blends intended responses with responses that emerge out of the changing organizational environment. The last step of an organizational strategic planning according to this approach is the monitoring and evaluation which helps the organization to determine whether it has achieved its purpose, goals, and objectives. The process of this step should be adopted at the start of the project implementation to allow effective monitoring and evaluation of every step of the strategic planning process. Effective successful monitoring and evaluation can only happen if the organization determines the outset of relevant key performance indicators (Dibrell et al. 2014). Monitoring helps the organization to determine whether planned results have been achieved to allow the organization take corrective action. Evaluation helps the organization to assess the ongoing or completed programs or designs in order to determine the relevance and fulfillment of the organization objectives, efficiency, effectiveness, impact as well as sustainability. A SWOT Analysis of the organizational strategic planning A SWOT analysis is a strategic management tool that is used by organizations to determine the strengths, weaknesses, the opportunities as well as the threats likely to be experienced in the course of implementing the designed plan. It examines the organizational internal strengths and weakness, its current and future opportunities for growth and improvement as well as the threats the external environment presents to its survival (Fleisher Bensoussan, 2015). The classic four step approach to strategic planning has been found to be very simple and due to its simplicity, it has been adopted by many business organizations. It is easily understood by all the organization stakeholders and therefore one of the greatest strength is in its ability to address the various planning concerns from the shareholders. The approach, therefore, can be easily adopted and implemented by many organizations and improve their effectiveness (Joanna, Anne, Steve, 2014). Its ability to monitor the progress of an organization policy at different levels of implementation also ensures that the challenges which might prevent the organization from achieving its goals and take corrective measure in advance. The organization future is clearly seen through the development of initiatives which are guided towards achieving the company common goals and objectives. However, the strategy has a great weakness in providing the time frame of achieving the set goals and objectives. An effective strategy is said to time bound and that it should allow the organization to achieve its goals and objectives in the stipulated time frame (Haines, 2016). This normally happens to the series of monitoring and evaluation which have to be done in every step of the strategic planning implementation. Especially when a problem is detected during monitoring and evaluation that has to be done before the project or program goes on (Reccado, 2015). However, the weaknesses can be overcome through the effective initial development and careful assessment as well as a review of the goals and objectives of the organization before the start of any stage of the strategy implementation. Strategic insights through which the organization can prepare for the future The success of an organization in achieving its short term and long term goals is dependent on the strategic plan document of the organization. The purpose of the document is to communicate to the organization the goals as well as the actions that the organization needs to take in order to achieve those goals and objectives and all other critical organization elements developed during the initial planning. Strategic planning is, therefore, an organization management activity that can generally usedby Curtin University to set priorities of an organization, strengthen operations through focusing on the organization energy and resources and ensuring that employees and other organization stakeholders are working together for a common good (Hill Schilling, 2014). Different organizations adopt different strategic planning documents or frameworks depending on the size as well as the operations of the organization. Whichever the choice of the strategic plan, an effective strategic plan arti culates not only the areas of concern where the organization has to take progressive actions but also how the organization will know if its successful. Despite the weaknesses of the approach or the strategic plan, it has great opportunities to improve as it provides distinct features through which other models of improvement can be integrated and lead to improved outcomes of the plan (Sikora Ferris, 2014). For example, during the second step of understanding the future direction or the vision of the organization the organization can still conduct a SWOT analysis and understand the feasibility of the project, it can also conduct a cost benefit analysis to determine the viability of the projects even before their plans are implemented Lastly, the approach also experiences threats from other organizational strategies which seek to offer a different channel of achieving organizational goals and objectives and where the managers are in control of the plans or they decide everything that has to be done in the organization(Grant, 2016). Due to its structural nature then the managers may not use the planning strategy, especially where they need to achieve short term goals and objectives. In most case organizations rather choose to adopt short term development or planning strategies in order to achieve their goals which do not provide a room for carrying out major guidelines and assessments required by the classic four step strategic approach. It is evident that strategic planning plays an important role in improving the overall satisfaction with strategy development. These insights may not necessarily change the planning strategy but may contribute highly to ensuring the success of the development of the organization strategy. The first insight is that the management of the organization needs to focus or start dealing with the issues affecting the organization (Andersen, 2014). Many times the managers have been found to focus on planning budgets as well as financial forecasting and anticipating big future challenges rather than focusing on the issues which might affect the implementation of the planning. In my opinion, however, the managers should identify and discuss the strategic issues that have or may have a likelihood of posing the greatest impact on the future performance of the organization. Such discussions help the managers to settle into a more typical planning exercises as well as identifying strategic initiati ves. The managers also need to bring the right people together since an effective issue based approach can only bear substantial results when the right people are involved in the debates. Many organizations have been found to focus on gathering data for strategic planning and ignore the interactive components which are vital in the development of effective strategic plans (Albrecht et al. 2015). It is also recommended that the managers need also to adapt planning cycles addressing the needs of each business. In most cases, managers have been found to focus on resources and time required to implement the strategies however it is important that they also focus on executing the plans major initiatives. These cycles build slack into an organization strategic review system and enable the management to address unforeseen but pressing strategic issues. SWOT Analysis Summary strengths weaknesses opportunities Threats Simplicity - the approach is very simple and therefore easily adopted Lacks a time frame of achieving set goals and objectives The approach can allow future integration with other performance measures Managerial control and therefore affecting policy decision making Ability to address various planning concerns Can experience seasonal changes Cost benefit analysis can also be done and determine the viability of the plans Can be substituted with other planning strategies in case of short term planning. Ability to monitor and evaluate the progress of the plan at different levels of implementation Cannot be used for short term planning Conclusion It is also important for the managers to implement a strategic performance management system in order to enhance the impact of the planning process as compared to the monitoring and evaluation guidelines which prolong the time need to execute the plans. Lastly, in my opinion, the managers need also to integrate human resources systems into the strategic plan as monitoring of the organization strategic initiatives is not sufficient this may necessitate the need for managers evaluation since their insights may be very important. References Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., Saks, A. M. (2015). Employee engagement, human resource management practices and competitive advantage: An integrated approach. Journal of Organizational Effectiveness: People and Performance, 2(1), 7-35. Dibrell, C., Craig, J. B., Neubaum, D. O. (2014). Linking the formal strategic planning process, planning flexibility, and innovativeness to firm performance. Journal of Business Research, 67(9), 2000-2007. Fleisher, C. S. Bensoussan, B. E. (2015). Business and competitive analysis: effective application of new and classic methods. FT Press. Grant, R. M. (2016). Contemporary Strategy Analysis Text Only.John Wiley Sons. Greg, K, Hosie,P (2014).Strategic Avoidance: Can universities learn from other sectors?, Journal of Strategic Planning. 55(1), 1-12 Haines, S. (2016). The systems thinking approach to strategic planning and management. CRC Press. Haines, S. (2016). The systems thinking approach to strategic planning and management. CRC Press. Hill, C. W., Jones, G. R., Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning. Joanna,H, Anne, W, Steve Y.C. (2014). Performance measures, consensus on strategy implementation, and performance: Evidence from the operational-level of organizations Accounting, Organizations and Society, 39 (1), 38-58 Melnyk, S. A., Bititci, U., Platts, K., Tobias, J., Andersen, B. (2014). Is performance measurement and management fit for the future?. Management Accounting Research, 25(2), 173-186. Riccardo, V. (2015).Creating value through foresight: First mover advantages and strategic agility.Technological Forecasting and Social Change,101 (23), 2015, 25-36 Sikora, D. M., Ferris, G. R. (2014). Strategic human resource practice implementation: The critical role of line management. Human Resource Management Review, 24(3), 271-281. Wheelen, T. L., Hunger, J. D. (2017).Strategic management and business policy.pearson. Wolf, C., Floyd, S. W. (2017). Strategic planning research: Toward a theory-driven agenda.Journal of Management, 43(6), 1754-1788.