Premium Essay

Operational Organization Ikea

In: Business and Management

Submitted By ergenie
Words 5538
Pages 23
OPERATIONS MANAGEMENT
GROUP PROJECT

Report on the Operations Management strategy of
Xuan Hoa Furniture and IKEA

Prepared for
Prof. Noel

By
- Group 7 -
Lê Quang Anh
Đỗ Thị Hà Anh
Vũ Kim Phượng
Nguyễn Thị Mỹ Linh
Nguyễn Thị Thùy Linh

May 22, 2014
EXECUTIVE SUMMARY
Operational management is line management of organizations that highly affect the company’s performance. It is a business function that organizes, coordinate and control the resources needed to produce a good, operational management is a business process to create highest level of efficiency and value add.
Operations management is a dynamic field and presents exciting new issues and challenges for operations managers. This is also a very important coursework for everyone of us who want to become a successful leader in the future. For that reason, after completing a 3-week Operations Management course, we – Group 7 would like to present a report about our findings on the comparison of the operations management strategy between 2 companies on the field of furniture manufacturing and retailer: Xuan Hoa Furniture and IKEA.
Our report is divided into 9 main parts, each one represents a strategic Operations Management decision. And every main part will be broken into 2 part: one from Xuan Hoa Furniture and one from IKEA. 1. General Introduction 2. Operations Strategy 3. Product Design 4. Managing Quality 5. Process Strategy 6. Location Strategy 7. Human Resources and Job Design 8. Supply Chain Management 9. Inventory Management
Our group’s purpose on writing this report is to provide information and express our own viewpoint on how the 2 companies make their Operations Management decisions, how these decisions are the same or different and how they can greatly affect the company’s overall performance.
Our group would like to thank you and express our…...

Similar Documents

Free Essay

Ikea

...Internationalization of IKEA in the Japanese market and Chinese markets Tutor: Authors: Group: Date: Leif Linnskog Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) 2022 June 4, 2008 Master Thesis EFO705, 10 points (15 credits) – Spring 2008 International Business and Entrepreneurship – MIMA Program School of Sustainable Development of Society and Technology Abstract Date June 4, 2008 Level Master Thesis EFO705, 10 points (15 credits) Authors Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) Title Internationalization of IKEA in the Japanese and Chinese markets Supervisor Leif Linnskog Problems Why did IKEA internationalize into Japanese and Chinese markets? And what factors did influence IKEA’s success in Chinese market but failure in the Japanese market of the first round? Purpose The aim of thesis is to understand the internationalization of IKEA in Asia by comparing between Japanese and Chinese markets. Method This master thesis based on qualitative approach in order to investigate the internationalization of IKEA in Asian markets as a case study since it is beneficial in understanding the observation and explanation of behavior in the certain cases. Conclusion IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while......

Words: 20792 - Pages: 84

Premium Essay

Operational Gap with in Organization and Business Development

... Date: [ 7/9/2012 ] Re: Operational gap with in organization and Business development Purpose This memo is being forwarded to you in regards to addressing a potential operational gap and limitation of growth with in our organization that needs to be addressed. There is a need to add an outside sales representative to develop and improve existing account possibilities. Summary In an attempt to analyze current market trends and possible business growth with in the solid waste industry, I have found that our current business model has been out grown by our current business needs. Currently, the Assistant Operations Manager develops and establishes new accounts, services existing customer’s accounts, provides the safety training and regulation implementation, and manages the work force outside of the office. The in-house sales representative position has not been able to meet all of our customers needs completely with all of the office duties associated with the position, in addition to developing new cliental. This indicates that there are a number of possible business opportunities with in our region that are not being addressed and possibly lost by our organization. When the business was acquired 15 years ago, by our conglomerate the current business model satisfied the business’ needs. Since then or organization has grown to three times the size. By developing and providing new products and services to a wider customer base our organization has remained competitive......

Words: 1006 - Pages: 5

Premium Essay

Ikea

...Background IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer1. Founded in Sweden in 1943 by Ingvar Kamprad, who later became one of the richest people in the world, 2 The Company is known for its modern architectural designs on various types of appliance and furniture, often associated with a simplified eco-friendly interior design3. In addition, the firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an average of two to three percent over the decade to 2010, while continuing its global expansion.4 As of October 2011, IKEA has 332 stores in 38 countries. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009.5 On February 17, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy.6 The IKEA website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from September 2007 to September 20087. IKEA is the world's third-largest consumer of wood, behind The Home Depot and Lowe's.8 Things were going so well for the company, that in 1973, the company's German......

Words: 1054 - Pages: 5

Premium Essay

Ikea

...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 and maintain a better customers service to keep existing customers. Secondly, for the design and manufacturing parts, IKEA owns its whole of the design part and outsources a part of manufacturing process to other companies to produce. Swedwood is one of the outsourcing company to manufacture wooden furniture and components for IKEA to sell. Thirdly, IKEA cooperates with third parties logistics firms that transport a part of products to different countries globally. For example Cardinal's logistics develops and implements innovative solutions to use the shortest......

Words: 3260 - Pages: 14

Premium Essay

Ikea

...How is the IKEA operations design different from that of most furniture retail operations? IKEA is known as one of the world’s largest furniture retailer that focuses highly on cost control, operational process and product development. IKEA differentiates itself from most furniture retailers by offering a wide range of well designed array of home furniture at very attractive prices that remain affordable to a large group of diverse customers. There are some unique features of IKEA as compared to most furniture retail stores (IKEA, 2012) ‘Self – Service’ (minimal service or influence from sales person) Details of all products are made ubiquitous in the showroom thus making sales assistance unnecessary which this in return helps to reduce the hiring cost of labor. Layout of Products (product exposure) Ikea stores are designed in a one-way ‘walk-through layout’ that requires customers to be exposed to the entire products which is unlike from most furniture retail stores where by customers may choose to go directly to the section they preferred. Hence, the flow allows increased efficiency from entering the showroom, selecting of products to lastly making payments. Furniture Most of Ikea products are self – assembled products, this helps to reduce the costs of shipping as higher volume of bulk packaging can be done. Unlike most furniture retail stores where free delivery and assembly is given, additional charges apply if fixing of product is required by the......

Words: 677 - Pages: 3

Premium Essay

Ikea

...IKEA IKEA was found in 1943 and it is a well-known brand with more than 301 stores spread over 25 countries. IKEA has multiple competitive advantages. There low cost structure still has kept them profitable against their competitors who are struggling. While IKEA maintains a low cost company they still offer customers a different shopping experience. Right when you enter the doors they give their customers pencils, paper, and measuring tape. This is a great approach for IKEA to set them different from their competitors. They also offer show rooms so the customer can get a feel of the display while not getting bothered by sales people. “Customers can pick and choose among the different options of accessories that they would like to use with furniture” (Ferrell & Hartline, 2011, p. 496). Furthermore, if customers purchased a big item that can’t fit in their car IKEA offers them to rent car racks. This is showing operational excellence. IKEA offers child-care services so that parents can go off shopping while not being bothered by their kids. I believe this is a great marketing strategy because it is creative and their competition do not offer child care services. Even in some IKEA stores they have restaurants so people can take a break from shopping and get a bite to eat then return back shopping. This is strategy will generate profits for IKEA because they will spend longer shopping and purchasing products because they do not have to leave and go eat. They also......

Words: 678 - Pages: 3

Premium Essay

Ikea

...CONTEXT There are multiple typologies of HR department roles in the literature which consider the extent to which departments are either reactive or proactive – for example, Legge’s (1978) conformist or deviant innovator roles – and the level of involvement in corporate strategy – such as Tyson and Fell’s (1986) architect (strategic), contracts manager (operational) and clerk of works (administrative) roles, later modified by Monks (1992) to include a fourth innovative/professional role which falls between the contracts manager and architect roles – and those that combine the two dimensions – for example, Storey’s (1992) change-makers (proactive, strategic), advisers (reactive, strategic), regulators (proactive, operational) and handmaidens (reactive, operational). Guest (1990) also included the unitarist/pluralist and conservative/traditional dimensions in his model of HRM roles, whilst Ulrich (1997) focuses on the people/process and future/operational dimensions of the HR role: strategic partner (future/process), change agent (future/people), administrative expert (operational/process) and employee champion (operational/people). We must consider the relevance of context to the creation of these role typologies. In addition to considering the content of the roles, the typology of HR department roles presented by Monks (1992) suggests that in stable environments, a simple model of HRM practice will suffice. It is only in complex organisations particularly undergoing......

Words: 9324 - Pages: 38

Premium Essay

Ikea

...standardised approach to the world? IKEA in China Ulf Johansson Department of Business Administration, Lund University, Lund, Sweden, and Standardised approach to the world 199 ˚ Asa Thelander Department of Communication Studies, Lund University, Helsingborg, Sweden Abstract Purpose – The purpose of this paper is to analyse the marketing strategy in China of the furnishing retailer IKEA in the context of standardisation and adaptation of marketing activities. IKEA’s strategy in China is compared to its corporate strategy throughout the rest of the world. Design/methodology/approach – The four P classifications are used as a framework to compare the central marketing strategies of IKEA with marketing strategies used in China. The paper builds on both primary and secondary data. Interviews with senior managers at IKEA are conducted and studies on business and retailing in China are used. Findings – The marketing strategies used by IKEA in China are found to be different from the standardised strategies it uses throughout the rest of the world. Several of the changed strategies are central to the business concept of IKEA. Research limitations/implications – The present paper shows the challenges for a standardised marketing concept and its implications. Originality/value – The paper provides, in the context of the standardisation and adaptation of marketing activities, a more nuanced and up-to-date picture of the strategies used by IKEA compared to previous studies.......

Words: 11732 - Pages: 47

Premium Essay

Ikea

...Problem Recognition Should IKEA become less Swedish and more multicultural? Objectives ▪ To deliver its brand promise to consumers; which is “to create a better everyday life for many people” ▪ To preserve IKEA’s culture and well-define values; togetherness, cost-consciousness, respect and simplicity ▪ To combine fundamental product offerings between low price, well-designed and high quality in order to create consumers’ satisfaction ▪ To take responsibility for people and environment as a prerequisite for doing good business Barriers ▪ Different consumer behavior in different countries; the purchase are highly influenced by cultural and social factors which are diverse in each country. For example, most of people in Hong Kong live in tiny apartment due to restricted estate. They, therefore, prefer moderate and practical furniture for limited space of their dwellings. ▪ Hard to control quality of local suppliers’ production; in some market, IKEA outsources to manufacture its products in lower cost countries. This method can well significantly generate the company’s success to be low cost player. It, however, might have a difficulty in controlling and examining quality of products. ▪ Strong local competitors; who has more experiences and information about the battlefield definitely has advantages in playing games on the rivals. Since the global brand like IKEA forays into countries outside Sweden, the company is facing with local......

Words: 1213 - Pages: 5

Free Essay

Ikea

...of IKEA in the Japanese market and Chinese markets Abstract Date Level Authors June 4, 2008 Master Thesis EFO705, 10 points (15 credits) Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) Internationalization of IKEA in the Japanese and Chinese markets Leif Linnskog Why did IKEA internationalize into Japanese and Chinese markets? And what factors did influence IKEA’s success in Chinese market but failure in the Japanese market of the first round? The aim of thesis is to understand the internationalization of IKEA in Asia by comparing between Japanese and Chinese markets. This master thesis based on qualitative approach in order to investigate the internationalization of IKEA in Asian markets as a case study since it is beneficial in understanding the observation and explanation of behavior in the certain cases. IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while internationalize into Chinese market because of supporting environments such as political, social and economic conditions as well as transaction advantage. To success and failure, psychic distance and learning, strategic decision making process, degree of adaptation of retail offer, entry strategy, characteristics of organization and management characteristics are the influencing factors on internationalization of IKEA in the Japanese and Chinese markets. Internationalization, IKEA,......

Words: 8861 - Pages: 36

Premium Essay

Ikea Analysis

...IKEA Analysis Repot Having a successful company takes a lot of work and researching. You see a lot of big successful firms go out of business after many years of being open due to lack of marketing and not being able to keep up with the rapid growing competition. It takes the integration of sales, marketing, front of the line staff and knowing your customers wants and needs to be successful for decades. Not listening to customer demands could be detrimental to your organization. Even if you are successful now, another competitor can rise and take away your market share. An organization should not only care about sales and revenue growth, they need to also be conscience about the environment and care about the working environment of their employees. IKEA is a Swedish company that dominates in the furniture industry and is very successful with their sales and marketing strategies. They are also very conscience about the external environment. They have been in the foreign market since 1973, they currently have stores in over 37 countries and are continuing to grow (most recently Asia). By following the traditional pattern of globalization, first operating in countries with similar cultures and then expanding to the foreign market, they were able to have great international success (Burt, Johansson & Thelander, 2011). We will discuss in detail why IKEA strategies are so effective and why other organization should learn from their current success. IKEA’s......

Words: 2344 - Pages: 10

Premium Essay

Ikea

...IKEA (/aɪˈkiːə/; Swedish: [ɪˈkeːˈa][2]) is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances, small motor vehicles and home accessories. As of January 2008, it is the world's largest furniture retailer.[3] Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed as one of the world's richest people in 2013,[4] the company's name is an acronym that consists of the initials of Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his hometown in Småland, south Sweden).[5] The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity.[6] In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion. The IKEA group has a complex corporate structure and is controlled by several foundations based in the Netherlands, Luxembourg and Liechtenstein.[7] As of December 2014, IKEA owns and operates 351 stores in 46 countries.[8] In fiscal year 2010, US$23.1 billion worth of goods were sold, a total that represented a 7.7 percent increase over 2009.[9] The IKEA website contains about 12,000 products and is the closest representation of......

Words: 299 - Pages: 2

Premium Essay

Ikea

...IKEA- Case Study Analysis Short Summary : IKEA was founded by Ingvar Kamprad who was a resident of Sweden. He had started doing his business in 1943 at the age of 17. He opened a start up of his own of selling furniture. He had to face heavy resistance initially when he had tried to sell his furniture due to a price war with their main competitors. Finally IKEA made the decision to produce its own furniture due to competitors trying to force suppliers to boycott IKEA products. They also contacted independent makers and sources in Poland to help them out. And their products gained tremendous response. By 1961 , its turnover went over 40 million US $.Slowly yet steadily it expanded . Its features and concepts such as Self Service, Low charges, Cash and Carry added new dimensions to IKEA. By virtue of its impeccable marketing ,planning and other strategic steps, IKEA became world leader in production and export of Swedish furniture. Employees had been given due freedom and bureaucracy was discouraged. In due course of time, it became an international brand with its off shore operations in USA, China, Canada etc. In a nutshell, IKEA followed its basic idea of “Retail in Detail” to provide customer satisfaction and hence it became one of the best companies in the world. Strategy of IKEA • Self Assembly features cuts operational and transportation costs • It concentrated on individual marketing rather than mass marketing • It focussed on diversified business and gave......

Words: 818 - Pages: 4

Premium Essay

Ikea

...IKEA: Leadership Leads to Product Innovation and Globalization Human Resource Management IKEA: Leadership Leads to Product Innovation and Globalization IKEA is a worldwide furniture retailer which sells ready-to-assemble furniture. The IKEA story started in 1926 by its founder ‘Ingvar Kamprad’ was born is Southern Sweden. He was raised on ‘Elmtaryd’, a farm near the small village of ‘Agunnaryd’ if we added all the quotes we can see how the IKEA name was created. The following time table shows how IKEA became an international retailer in 40 countries around the world. Now IKEA is the world’s largest furniture retailer and seller of ready-to- assemble furniture, as we can see from the previous time table that IKEA is expanding globally in different regions all around the world, they has 338 stores in 40 different countries. And in 2012 IKEA achieved 8% growth in profit compared to the previous year, they reached $4.34 billion. Vision: To create a better everyday life for the many people. Mission: Offering 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. With the set vision and mission they are focusing on three main business ideas: * Product Range and Innovation: IKEA products are known for its quality and innovation, they try to create unique products that offer home furnishing solutions for every room in the home, making sure that these products meet daily wants......

Words: 2062 - Pages: 9

Premium Essay

Ikea

...International Businesses Strategy of IKEA –Activities of the multinational furniture retailer Seminar paper in “Strategy of International Business” University of Economics Bratislava 2008/2009 Katarzyna Gawor Sona Halasova Friedemann Polzin Table of Contents IKEA – global strategy............................................................................................................2 History................................................................................................................................2 IKEA corporate structure...................................................................................................3 The IKEA Group............................................................................................................3 Inter IKEA Systems B.V. ..............................................................................................5 IKEA Stores...................................................................................................................5 Business strategy...............................................................................................................5 Mission...........................................................................................................................5 Target group..................................................................................................................6 Organizational structure........................................................

Words: 7447 - Pages: 30

Vintage Camera Shoulder Neck Strap For Nikon Canon Sony Panasonic SLR DSLR UK | La Befana vien di notte | Willkommen im Wayne