IKEA: Explain The Difference Between Internal And External Factors

ASSIGNMENT NAME: IKEA CASE STUDY
STUDENT NAME : AZIZA MUHAMMAD USMAN
STUDENT ID : 200012823

1. Describe what is meant by a SWOT analysis? Swot Analysis is a strategic planning tool that helps in achieving the objectivities and mainly focuses on the key areas of identifying and evaluating or assessing the organizations Strengths, Weaknesses, Opportunities and Threats. The 4 factors are categorized can be placed in Internal and External & Positive and Negative.

The two internal factors that are can be controlled by the organization itself are Strengths and Weaknesses. These include issues which are internal in nature and vary from the different sections or departments

For example: IKEA has a policy to not use more than the required necessary material for the production of any single item. This gives rise to the opportunity to improvement ideas for usage of waste for recycled or fabricated goods and materials.

2. Explain the difference between internal and external factors?

INTERNAL FACTORS – The factors that affect the organization without any regard to any aspect outside the organization are known as Internal Factor. These consist of Strengths and Weaknesses which specifies that it can be positive or negative. They mainly revolve around the company’s structure such as:
 Management (different departments)
 Manpower (related to the staff)
 Machine (related to equipment)
 Material (related to resources)
 Money (related to capital)

In IKEA, the promise to provide good quality products at a worldwide range is its strength and the scale of business makes communication with its consumers and stakeholders difficult with regards to its current activities can be taken as a

Innovative ideas and designs had made IKEA stand out among the rest of the producers. They customer made plans for their consumers have attracted a lot of buyers at different stages.

 Focus – To narrow down the competitiveness in the market, IKEA has taken their focus or direction of view and broken that down to different segments to serve them better. By narrow their segments, their focus strategy concentrates on only that portion finding different and innovative ways to work on it.

6. How is it in line with the company strategy?

COST LEADERSHIP STRATEGY

The following are how IKEA achieved a strategy on cost leadership being in line with the company’s objectives:

 Emphasis on efficiency
 High volume with standardized goods
 Better design and production than competitors
 Low cost of production
 Mass production for high customer base
 Tailor-made products with modification features

These methods have made IKEA achieve cost leadership strategy being in par with the company’s strategy. They are a brand that holds it place due to their non- stop adherence to these ways without diminishing the need to keep improving themselves to the