Week 5 Assignment-Deliver The Value-Ikea Case Study

Week 5 AssignmentYour assignment this week is to review the IKEA Case Study below. While reviewingit, consider it as background information for your upcoming presentation to theIKEA Senior Management Team. More details on your upcoming PowerPointpresentation to the management team are provided at the end of the case studyguidelines. Deliver the Value: IKEA Case StudyIKEA is a Swedish-owned global business founded in 1943. The business generatesannual revenues of 27 billion euros and employs 139,000 people in 298 stores and26 countries. The values and design philosophy of the founder continue to underpinthe brand. These values might be summed up as frugal, democratic, environmentallyaware, and design oriented. IKEA has become synonymous with Swedish lifestyle. The stores are virtually identical across the globe and sell a range of globally sourcedflat-packed furniture products as well as a range of related furnishings for the home—the stores offer customers a Swedish experience by incorporating restaurants anda variety of customer services intended to simplify the shopping process (e. g. ,childcare). What is interesting about IKEA is that customers have become asignificant part of the value creating process—customers play a key role in terms oflogistics and in production. By performing the assembly of the flat-packed furniture,customers complete the final stages in the production process. In terms of logistics,the customer “moves” goods from warehouse-style storage through the checkout,and then transports the goods home. The trade-off for the consumer is lower pricesand immediate gratification—furniture is typically sold using just in time (JIT)inventory management, which means that once a customer has placed an order, thefurniture then goes into production and is delivered to the customer’s home some 3–4 months later. IKEA’s senior management has in the past pursued an aggressive expansion policy,but management is currently changing direction, adopting a slower rate ofexpansion and investing in existing stores. The company plans to increase sales by10% a year to 2020, thereby doubling annual sales revenues. Management isconcerned about how expansion in the BRIC countries, particularly India and China,is pursued. There are fears about preserving the company’s culture in these hugemarkets (Milne, 2013). Sources: http: //www. ikea. com/ms/en_US/this-is-ikea/company-information/index. htmlMilne, R. (2013, September 1). Ikea signals slower expansion. Financial Times. What do you think? What would you do? What problems do you foresee andhow will this impact IKEA’s Swedish concept? Please recommend a marketingsolution that will help IKEA achieve growth in either India or China based onyour understanding of the place P and how delivering the value is evolving. Please use the case study guidelines below to perform a brief analysis, identify theproblem, suggest alternative solutions, and make recommendations for theimplementation of the solution that you believe is the best fit. Case Study Guidelines1. Analysis of the Current Situation—The proper context must be established for thecase analysis. Please provide a SWOT analysis in a SWOT box. Research: Identify the key environmental factors such as industry trends, level ofcompetitiveness, customer perceptions, legal considerations, and evolvingtechnology at the outset of the analysis. Summarize the key aspects of the internal environment of the firm in terms ofstrengths and weaknesses and the external environment in terms ofopportunities and threats to the firm in your SWOT box. 2. The Target Market—Identify your target market: Who is your target customer? Interms of demographics and lifestyle, what aspects of consumer behavior provideinsights into this group of customers?3. The Problem—Identification of key problem(s). It is easy to identify symptoms ofproblems while failing to identify the real problems. For example, declining salesmay be identified as a problem, when the decline is only symptomatic of morecomplex problems that are harder to observe. Make a clear distinction between whatis identified as the problem and the symptoms of the problems. 4. Alternative Solutions—Identify and evaluate alternatives. Develop reasonablealternatives and evaluate them in terms of feasibility, projected costs advantages,disadvantages, and potential short-term and long-term consequences. 5. Recommended Course of Action—Select a course of action and provide theappropriate strategies and tactics to accomplish the chosen course. Justify yourchoice in terms of your analysis. As most practitioners know, charting a course ofaction can be a difficult job, but implementation is the true challenge. Produce aworkable action plan that would have a reasonable probability of success in theimplementation phase. This assignment will be a presentation using PowerPoint. Develop a set of at least five(5) PowerPoint slides to present the findings of your analysis. Some additional researchis expected. The IKEA website is highly informative. Use APA format and include anadditional slide with your sources. Assume that your analysis will be presented to theIKEA senior management team and that your job depends on it!Grading Rubric: OutlinePointsBest PracticesFollowed15/15Analysis ofSituation/SWOT15/15Target Market15/15Problem15/15Alternative Solutions15/15Final Solution Proposal 15/15DescriptionAt least 5 slides that follow provided best practices: • First slide should include the Title of the Presentation,Student’s name, Course Name and Number, Professor’sname and date submitted• Each slide should have a clear and meaningful title• Keep text to a minimum, limit slides to five bulletpoints• Use simple, non-distracting slide design with easy-toread font• Add meaningful graphics but do not use animations orsound files in a recorded PresentationThe proper context must be established for the case analysis. Please provide a SWOT analysis in a SWOT box. Identify your target market: Who is your target customer? Interms of demographics and lifestyle, what aspects ofconsumer behavior provide insights into this group ofcustomers?Identification of key problem(s). It is easy to identifysymptoms of problems while failing to identify the realproblems. For example, declining sales may be identified as aproblem, when the decline is only symptomatic of morecomplex problems that are harder to observe. Make a cleardistinction between what is identified as the problem and thesymptoms of the problems. Identify and evaluate alternatives. Develop reasonablealternatives and evaluate them in terms of feasibility,projected costs advantages, disadvantages, and potentialshort-term and long-term consequences. Select a course of action and provide the appropriatestrategies and tactics to accomplish the chosen course. Justifyyour choice in terms of your analysis. As most practitionersknow, charting a course of action can be a difficult job, butimplementation is the true challenge. Produce a workableaction plan that would have a reasonable probability ofsuccess in the implementation phase. Editing, spelling,grammar, Sources on 10/10 Written at a graduate level, more than 5 error results in 0 points. last slide in APA formatTotal100Notes to student.

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