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Weaknesses Of IKEA

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company background
IKEA is a Swedish multinational group of companies that design and sell appliances, ready to assemble furniture, home accessories, and small motor vehicles. The corporation was started in 1943 by Ingvar Kamprad Elmtaryd, which is the name of the farm where he was brought up and Aggunaryd his hometown in Sweden to form the acronym IKEA. IKEA is famous for its modern furniture designs and eco-friendly products. As at August 2015, the firm had over 347 stores spread across 47 countries in the globe. Its sale and net income has been improving over time and it hopes to continue on a positive trajectory.
Research questions

SWOT Analysis for IKEA
A SWOT analysis for IKEA indicates that the corporation has the following strengths. …show more content…

On the other hand, IKEA faces huge opportunities in untapped markets. Moreover, it can grow its online sales, expansion through advertising and marketing to students and diversification into other product segments like food. Finally, the main threats facing IKEA include stiff competition from other companies like Wal-Mart and local manufacturers of furniture in the countries whereby the firm is present. Economic crises and recession as well as political and legal factors in international markets are threats to the company (Jeffs, C. …show more content…

The company should address poor performance by identifying these areas and taking corrective measures to improve the situation. Firms should also be managed through performance plans that are written and followed to the letter. Indeed, IKEA should enhance the element of coaching for performance improvement, enhancing the elements of good performance, and extending high performers.
For the above challenges in HRM, the firm should use the following management strategies. Diversity issues in human resource can be managed through the inclusion of all employees in corporate management. The company can also foster openness and diversity in its leadership, utilize diversity training, and launch customizable employee satisfaction programs. To address talent acquisition challenges, the firm should use good selective criteria that address its needs. Retention and employee turnover problems can be handled by guaranteeing monetary satisfaction, and meeting the expectations of workers. It can also be dealt with by making the work roles and environment dynamic and challenging, ensuring that employees enjoy their privacy at the workplace, and incentives. For the changing HR roles, the firm should use strategic HR management strategies like IHRM, the decentralization of the company, and restructuring the

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