Political Risks In Ikea

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Strategic management is the organizational management activity or techniques that use to set priorities strengthen the organization’s operations, focus energy and resources, and to ensure that employees and other stakeholders are working toward to achieve the corporation’s goals and their objectives. It is used to refer to the entire scope of the strategic-decision making activity that made by the corporation. Strategic management is the process of examining both present and future environments, formulating the organization's objectives, and making, implementing, and controlling decisions focused on achieving these objectives in the present and future environments (Garry D. Smith). Strategic management involves setting goals and objectives,…show more content…
First, IKEA practice political risks management. Top level management of the corporation understand that political risk affects every aspect of their organization. Both the board and management level responsibility for monitoring the political risk. The corporation’s risk tolerance level should communicate across the organization. Management of the corporation should view political risks with other risks that will affect it in terms of a portfolio. This method of examining risk will allow management to see how the risks interact with each other and that political risk can be both internal and external to the organization. The portfolio view also help companies view their political risks globally and determine if risks in different countries offset each other. This method of diversification allows management to see how political risks shift across the globe and allow them to take advantage of…show more content…
Their designers, product developers and technicians take into account safety, quality and environmental impact at every stage of the new product's development. IKEA will decide on the price tag the item will have when sold in IKEA stores. However, IKEA never compromise the quality or safety of IKEA products even offering the product in low prices to ensure that their reputation will not be damage in other countries’ perception. Besides, IKEA have a clear strategy to decrease the environmental risk that impact from their entire range over time. IKEA use a set of different tools and processes to ensure the improvement in all the phases of a products life cycle such as raw material, manufacturing, distribution and product use. IKEA recycles large quantities of material such as cardboard, plastic, paper, metal, wood and glass. Most IKEA stores have provide collection points for customers to return waste, such as electrical and electronic equipment, spent batteries, discarded packaging and low-energy bulbs for recycling. IKEA attempts to repair products rather than simply disposal them. Those products are used as standby parts or sold at bargain
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