Tuesday, November 19, 2019
The Phenomenal Growth of IKEA Essay Example | Topics and Well Written Essays - 6750 words
The Phenomenal Growth of IKEA - Essay Example IKEA sales have topped $17.9 billion in the same year through international furniture chain of 226 stores in Europe, Africa, Asia, and the US. Despite its popularity and uniqueness IKEA has a low penetration in its markets and commands only a 10% share in the markets that it operates in. It has also been facing management problems as well as some consumer dissatisfaction issues arising out of employee indifference. Ã¢â¬Å"Strategic management is an ongoing process that assesses the business and the industries in which the company is involved; assesses its competitors and sets goals and strategies to meet all existing and potential competitors, and then reassesses each strategy annually or quarterly [i.e. regularly] to determine how it has been implemented and whether it has succeeded or needed replacement by a new strategy to meet changed circumstances, new technology, new competitors, a new economic environment., or a new social, financial, or political environment.Ã¢â¬ (Lamb, 1984:ix)1 New Management Strategies need to be adapted to meet these challenges in order to convert opportunities into profitable business. In order to make these assessments, the following analytical modes will assist in formulating guidelines for the management. There are several issues that demonstrate that IKEA, despite its phenomenal growth, has failed to lay down any policy for strategically communicating with the market in general and its clients in particular. A. The ownership of has remained in one hand and this has denied the management of infusing alternative views other than that of the owner. Although the ownerÃ¢â¬â¢s views and beliefs are laudable, yet they offer only broad directions on ethical values to its employees. They do not lay down policies and it does not get translated into measurable action.