Ikea practise exams question1.How are sustainability priorities reflected in IKEAs mission and design?
2. Evaluate IKEAs innovative design of its delivery/distribution processes, by reference to how it has transformed the home furnishings industry.
3. How does IKEA create sustainable value for its stakeholders?
4. How has IKEAs organisational culture contributed to its success on the home furnishings market?
5. What are the key contingency factors impacting IKEA?
6. Explain impacts of globalisation on IKEAs operating model?
Show an understanding of the three dimensions (economic, social and environmental) of the sustainability concept.
Discussion of the business culture should be central to the students response to this question.
Mission and design include:
A focus on a wide cross-section of the population as customers
A focus on quality of product at a low price
Subtly combining product style and lifestyle
Embedding cultural values in the product (originally, Swedish perceived values)
Visualising changes in customer need over time (lifetime)
Targeting niche market consumer needs (a culturally adaptable organisations)
Anticipating cultural shifts, such as the varied composition of modern families
Continuing customer survey and feedback.Analysis and evaluation of related economic sustainability aspects 3 marks
Analysis and evaluation of related social sustainability aspects 3 marks
Analysis and evaluation of related environmental sustainability aspects 3 marks
Integrative thinking (summative evaluation) 1 mark
Ans 2
The delivery/distribution processes are indicated but also implied. The case study includes supplier relationships under this heading, not just delivery at the consumer end. The following are observable in the case:
creation of a unique supplier relationship, outsourcing nearly all production (recall the initial response of the furniture industry producers in Sweden, clearly challenged by this model)
one-stop, uniform layout stores that effectively expose customers to more products in the same way (the case study glosses over the confusion that is also a risk here it is noted, but nothing more is made of it)
flat pack delivery is cheaper and environmentally more sensitive
focus on energy efficiency