Value Chain Management of Ikea

4524 WordsMay 22, 201319 Pages
IKEA Purchasing Strategy Jerry, Yeung Siu Hang TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. INTRODUCTION …………………………………………………………………………………………………… 1. Company Background & History 2. Company overview 3. Vision and Mission 4. Key Objective to build an efficient purchasing system to maximize the profit margin 3. Related Background……………………………………………………………………………………………. 1. What is the definition of purchasing Management 2. What is the definition of Purchasing Management in retail industry 3. What is Purchasing Strategy in IKEA a) Global Sourcing b) IWAY Concept 3.2.1 .Analysis of Generic competitive strategies In IKEA 3.2.2. Cost Leadership 3.2.3. Differentiation 3.2.4. Focus 3.3 Value…show more content…
(3) 2.3 Vision and Mission The IKEA vision and mission statement drive the framework of its global procurement strategy. IKEA vision is “To create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”. (4) One of those keynotes is to create a range of low prices products that make as many customer will be able to enjoy IKEA services. To achieve this vision IKEA is keep seeking hard the best procurement environment. 4. Key Objective to build an efficient purchasing system to maximize the profit margin IKEA aims to develop inexpensive products doesn’t mean to sacrifice its promise to consumers – “A better everyday life”. Instead of low quality product IKEA tends to deliver its mission by better purchasing management. IKEA spread its Sweden designed furniture to manufacture in developing countries to keep the lowest production cost. With more than 1000 suppliers over 55 countries, approximately 62% of purchasing is from Europe and around 34% from Asia. (5) 3. Purchasing Strategy of IKEA 3.1 What is the definition of Purchasing Management ‘we define global purchasing as the activity of searching and obtaining goods, services and other resources on a possible worldwide scale, to company with the needs of the company and with a view of continuing and enhancing the current

More about Value Chain Management of Ikea

Open Document