Global Company Environment &amp

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StrategySoon, true to its mission and vision, IKEA opened its first oversea store in Norway, followed by many other stores and distribution centres in many parts of Europe and the United States. Thus in 1990 onwards, IKEA embarked on a global operations strategy and put up more stores in UAE, China and other parts of Asia, Australia and even Russia. Today, IKEA pioneered the global market and successfully positioned the IKEA brand in more than 40 countries in Europe, North America, Asia and Australia with more than 300 stores and more than 12,000 products in its product range. IKEA also introduced innovations in its stores by putting up IKEA restaurants and groceries to cater to the needs of its growing customers. All of this growth would not be possible without implementing strategic and global operations management that transcends national boundaries. …
Operations management took responsibility in protecting the environment by changing the way they do things in IKEA and by using environment friendly materials. IKEA also took care of the less privileged children in the world by generously donating and partnering with UNICEF welfare programs. 2. Compare and contrast the critical success factors (CSF) that helped IKEA to be competitive. Briefly outline how Activity mapping technique helps IKEA link competitive advantage, core competence, CSF and supporting activities. The major contributor to the success of IKEA is low price differentiation of its Swedish furniture that is globally appealing. While contemporary companies are focused on specialty design, IKEA keeps their design simple, light and functional, produced at the least cost without sacrificing quality. IKEA mass-produced for the worldwide market while its competitor mostly produced on demand. While IKEA’s competitors shipped and delivered bulky preassembled products, the company innovated by selling unassembled products on where is as is basis, thus bringing down price without sacrificing quality. The results are flat packages and lowered transportation and storage cost. Another critical success factor is the way IKEA managed its supply chain. Instead of directly managing product quality and investing on costly plant, property and equipment, IKEA delegated the responsibility by partnering with more than 1,200 suppliers in 55 countries. This offers more flexibility and keeps their headquarter focus on transnational operational strategies, allows more resources for research and design, marketing and advertising campaigns, and even more resources for community social