IKEA

IKEA

IKEA

Answer 1A) Sustainability

The term sustainability in the case study refers to environmental sustainability; IKEA is conscious of how its business impacts the environment. IKEA aims at making better use of its raw materials and energy, which suggests that it wants to make responsible decisions in order to protect the environment.

B) Strategy

The term strategy shows up three times in the case study. The term strategy is a set of methods, techniques or a roadmap which guides the business to achieve its long-term goal. The first manner in which strategy shows up in the case study is “a low-price strategy”, which means that IKEA uses low prices as well as a wide range of good quality products in order to attract customers of all age groups. The second sense is “strategy for growth” which suggests that in order for the IKEA business to flourish, they make sure to make their products available to people from around the world. Therefore, the IKEA uses opening stores throughout the world in order to make their business expand. The third sense is “business strategy”, which focuses on keeping the business environment- friendly. This will draw people towards IKEA when they realize it protects the environment.

C) Price Sensitive

The term Price sensitive in the case study implies that that price of products matters a lot in the business. Customers demand tremendously increase or decrease because of the price range of a market. Moreover, IKEA provides home furniture, and partially home furniture is luxury products rather than mere necessities; therefore, customers tend not to buy those expensive products which they do not immediately need. D) Key Performance Indicators

IKEA seems to be concerned about two major things, people (customers), and the environment. KPI is what enables IKEA to check regularly whether its performance is in on track with its long-term goal. Key Performance indicator, in the case study do not only appear as indicators of the progress of business, but also as short-term goal-setters in order to achieve the long-term goal.

Answer 2

Number of customers who had been to each of the IKEA stores

Probably, no customer has ever been to each and every IKEA store in the world.

Spend per customer in each store

If the exact number of customers were available, then perhaps, dividing 23 billion Euros (with its 8% increase) would answer this question.

Mission statement:

A mission statement seems to summarize main objective of business and what its long-term goal is. A mission statement can sometimes lean more towards attracting potential clients as opposed for the existing-clients. Mission statements should include what a business does, it long-term goals and its core values. The following should be IKEA's mission statement;

“IKEA is a home furnishing retailer. Our mission is to provide affordable and excellent quality furniture for people from all age group. We also believe in keeping our production environment-friendly, so people can enjoy a healthy lifestyle both indoors and outdoors.”

The above should be IKEAs mission statement is because it captures the essence of the entire ...