Ikea Strategic in Action

1026 WordsAug 19, 20135 Pages
STATEGY IN ACTION EVALUATING STRATEGIES Part strategic position and strategic choice which mention above are underlining company environment, capability, and its strategy. Strategy in action will consider on how strategy act in organisation (Johnson et al., 2011a).This part of report will evaluate them considering their suitability. Evaluation IKEA strategies regards Suitability Suitability refers to the strategy is used to evaluate whether the strategies address the key 'opportunities’ and ‘constraints’ underlined by the organisation 's strategic position (Johnson et al., 2008). This criterion can be examined by checking the strategic options against the environment, capabilities and the stakeholder expectations. Therefore, the…show more content…
In overall, it appears that IKEA capabilities and its strategies are suitable to compete in the rivalry situation. IKEA generates its strengths and overcome the weaknesses in a suitable way. Thirdly, evaluation of suitability of IKEA strategies and capabilities according to Ansoff analysis of 4 possible development directions will be examined. The suitability will be evaluated whether these options will match to future scenario. The future scenario which matches in a term of economical environment is predicted that the world economy will maintain very weak in 2013 and slightly decrease between 2014 and 2016 (The Guardian, 2012). Apart from evaluation the suitability of IKEA strategies and capability, the suitability will be used to assessment whether IKEA strategic options meet the stakeholder expectations (Johnson et al., 2008). Table 5 Evaluation of suitability – Direction of growth In overall, IKEA strategies and capabilities are suitable in the environment and meet the expectation of stakeholders. Market penetration may be the most appropriate direction that IKEA should carry on at the present time to the future scenario predicted. There is no major investment needed. The IKEA current strategies and its capabilities is now effective under this circumstance. However, there is a difficulty in IKEA’s strategies. IKEA is a global company which generates same strategies almost every market called one-size-fit-all approach (Stern, 2012). Although,

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