SUPPLY CHAIN AND LOGISTICS

Supply Chain and Logistics

Supply Chain and Logistics

About IKEA

IKEA is a retailer and designer of furniture and decorative items in the kit, the original Swedish. Founded in the 1940s by the young Ingvar Kamprad, IKEA has grown into a global retailer with an annual turnover of over €21.5 billion. Furniture is the second most important raw material at IKEA, after wood. In the 2010 financial year, IKEA products used 190,000 tons1 of Furniture lint. This is less than 1% of the global market of around 26 million tons, but still IKEA is one of the world's foremost Furniture buyers. IKEA sources its products through trading service offices that it operates in producer countries. United Kingdom primarily manufactures furniture products along with China and Turkey. Although Furniture widely seen as a “natural” fabric, it has a large environmental footprint: its production often involves the use of a lot of pesticides, fertilizer and water. Because it grown mainly by millions of smallholders, how it produced also have enormous social and economic implications. In 2002, the IKEA Material Risk Council commissioned a study on the global Furniture industry to improve the company's understanding of the industry and formulate a policy for the firm's Furniture consumption (Jonsson, P. and Gustavsson, 2008, Pp. 280).

IKEA is one of the most popular global companies, dealing in home furnishings. IKEA is privately owned, and is rated as one of the best organizations to work for because of its culture. IKEA has the widest range of home-furnishings product range that includes about 15,000 articles, and is the most extensive in terms of both number and style. The company has also diversified its product range through prefabricated housing and food products. The company's strategy for its products is derived by low-pricing. This strategy allows IKEA to explore every available segment in the market. The company takes immense pride in having one of the broadest global networks of 314 stores and franchisees in more than 35 international markets. The current promotion strategy of IKEA is based on the idea of building healthy interpersonal relationships with its customers. The firm issues its own catalogue annually. It also uses television promotions and radio advertising, as well as, magazine sponsorships. IKEA also runs its own restaurants in its stores that are a great attraction for the customers. The company's global website IKEA.com is also one of its key marketing instruments.

Answer No1)

The structure of the organization can be constructed in many ways. This structure depends on the objective of the organization. However, the organization structure determines the styles and forms in which the company operates and performs. It vastly affects the structure of the organization as the responsibilities of function and process distributed among different bodies such as the branch, department, workgroup and individual. The objectives are results that a company seeks to achieve, or situations where it seeks to reach. For the development of a business plan, it is important to determine the objectives of a ...