Monday, August 19, 2019
1.0 Description on the selected organization: IKEA is one of the huge successful retailers in the world whereby has 280 stores in 26 countries by the year 2010 and had been visited by 580 million shoppers. IKEA has elegant designed products with low priced. IKEAÃ¢â¬â¢s sale has increased from 4.4 billion in 1994 to 23.5 billion in 2010. The author has attached the sales report in appendix 1 and 2. The founder was Ingvar Kamprad whereby he is still a dynamic advice-giver of IKEA despite his age reached 80. IKEA had influence worldwide market widely with a good strategic marketing tool. IKEA products are cheaper 30%-40% compare to other retailers. Besides that, Asian market convinced with their economical western product that has complete household products. In this chapter, the author had explained on the overall IKEAÃ¢â¬â¢s history. In the next chapter, had explained on four important macro elements followed by the macro elements effect towards the organization, and also given suggestions to manage the organization accordin g to the macro elements. Company Background Scott Allen (2014), stated Ingvar Kamprad formed IKEA in Sweden when he was 17 years old in year 1943. His company at first selling fish, christmas magazines, and seeds from the family farm then started selling matches whereby they bought 100 per lots and sold it individually by marking up the prices higher. Scott Allen (2014), stated the name IKEA means, I and K is Ingvar Kamprad initial, E is Elmtaryd which is family farmhouse and A is for Agunnaryd, the name of village where he came from that is located in Southern Sweden. Kamprad has also added ballpoint pens and sold them through mail order. His warehouse is small sheltered house located in their family farmhouse. He man... ...t and satisfactions. In addition, IKEAÃ¢â¬â¢s threats are poor understanding of cultural needs and demands. Economically, IKEA's growth had increased due to their low price furniture. The threats, are IKEA had failures to look into the quality of the product. Technologically, IKEA products able to standardized globally. Perhaps, to maintained IKEA's business they tried to stabilize their business with different angles such as stabilizing political status by maintaining good rapport and follow legalization rules all countries. IKEA has also use good method of approaching all the people and improve the performance of their services and products. Furthermore, the entrepreneurs good in assessing, planning and implementing accordingly in order to face any challenges. IKEA has able to accommodate the actual demand in the market towards new technology and younger generations.