MGMT-220 Week 4 Topics ExploredIKEA Furniture Production Comp.docx

MGMT-220: Week 4 Topics Explored
IKEA Furniture Production Company
IKEA Furniture Production CompanyIKEA Furniture Production
CompanyData Silos
Information within an organization context is based on the need
to develop a greater understanding on the need to store
information and avoid sharing which might compromise the
company performances. It is important to ensure that the key
measures that are put in place regarding information safety is
based on critical understanding on of important data that is
utilized within the company from different department. A data
silo is a repository of a fixed data that largely remains under the
control of one department. Therefore, the department in
improving the company productivity mainly uses information
within data silo (Lindh & Ekman, 2016).
Sales
Sales includes important information about the company’s sales
across all of its products on the market. The company offers
variety of products in the market and thus there is need to have
a clear understanding on company development.
Sales data is collected by sales department and is used to help
in understanding important processes within organizational
setting. A greater understanding on how to effectively used
sales data from different company products create a highly
transformed business environment where it is possible to
achieve a greater level of organizational success.
Expenses
Expenses data is important within the company and the Finance
departments with an important aim to have a better
understanding on the company production process store it.
Having a greater success level is based on the need to achieve a

higher level of organizational success and thus it is important to
achieve greater level of success since it is important to
minimize expenses and increase sales.
Human resources
the human resources data is stored within human resource
department and aims at creating a highly integrated
organizational environment where it is possible to achieve an
improved level of organizational success human resource data
include understanding on the number of employees, their
responsibilities and well as the evaluation based on the set
individual goals.
Data Silos Opportunity for Improvement
Eliminating silos in this case means that there is need to
develop an integral system where all the data captured by the
company is stored together with a key focus to improve
organizational success. Therefore, data management system
would create a greater level of understanding on important
company aspects (Lindh & Ekman, 2016).
Business Process Changes Required
Business processes outline important processes within
organizational setting where it is possible to achieve a greater
level of success. Changing the existing business processes will
focus on the company operational strategy, which is rigid, and
thus require a significant consideration where it would be
possible to understand the existing changes, which would have a
direct influence on the company outcomes, which include
employee engagement and sales (Ngai & Falkheimer, 2017).
Web 2.0 – The Interactive Internet
Using the Web 2.0 has focused on creating a greater
technological influence where it is possible to achieve a greater

level of organizational success. Creating a highly interactive
environment is aimed at improving user experience. The
company has integrated a flexible technology environment
where it is possible to achieve a greater level of organizational
success through focus on the existing levels of diversity.
Customers within the company can describe their preference and
have the company develop their products based on their
preferences in order to improve high level of organizational
success (Subramanian & Wang, 2017).
New Web 2.0 Tool #1
Controlling how information is shared within the organization
provides a highly integrated environment where important
technological aspects have been integrated with a crucial focus
on protect the company information as well as the interactive
user interface, which needs to be attractive and easy to use.
Therefore, use of robotics will help in the production process
without compromising the quality of the products (Ngai &
Falkheimer, 2017).
Risks:
Controlling the influence from other sources creates a highly
integrated business environment where it is difficult to achieve
a greater level of organizational success. Inability to control
who is able to access information on the company database is a
high risk since the company is at risk of data breach (Lin et al.,
2016).
New Web 2.0 Tool #2
Introduction of artificial intelligence driven chat box will help
revolutionize the company customer experience. The automated
artificial intelligence powered chat bots have effectively been
integrated within workplace environment to engage customers
through email or text. These chat bots have been strategically
designed to adopt to changes in conversation based on a high
level of versatility. The integration of this technology in
customer relationship management provides a crucial focus

where there is need to develop a greater level of understanding
where it is possible to maintain customers. When it determines
that a lead is read to buy it alerts a human sales representatives
thus saving the company a lot of time especially on customers
who are doing enquiries (Pang et al., 2017).
Risks:
The maintenance cost of these machines is very high and thus
they are susceptible to error especially if the program installed
fails.
IS Components (Revisited)
Hardware
Software
Data
Procedures
People
· Furniture1
· Home decor2
· Inventory database3
· Supply chain management software4
· …#
· Sales5
· Expenses6
· Production7
· Distribution8
· …#
· Chief operating officer9
· Chief financial officer10
· Operations manager11
· Inventory manager12
Item
Type
Description & Notes

1 Furniture
1Hardware
The company is mainly engaged in the production of furniture
to a wide range of customers.
2 Home Decor
2Hardware
Home décor produced by the company include decoration
material, lighting, cabinets among others
3Inventory database
3Software
It is tasked with monitory inventory within the company to
ensure sufficient production process
4 Supply chain management software
4 Software
Tasked with the management of company supply chain process
to improve company operations.
5Sales
5Data
Highlights crucial information regarding the company
performance across its stores
6Expenses
6Data
Monitors the company costs
7Human resource
7Data
Focus on company human resource key data, which can be
analyzed to provide a greater understanding on company
development.
References
Lin, E. C. H., Shih, Y. C., & Chang, R. C. (2016, July). A
Research on Integrating AR and Multimedia Technology for
Teaching and Learning System Design. In International
Conference on Frontier Computing (pp. 725-731). Springer,

Singapore.
Lindh, C., & Ekman, P. (2016). Integration of Information
Technology in Business Relationships: Implications for the
Extended Network. In Extending the Business Network
Approach (pp. 177-191). Palgrave Macmillan, London.
Ngai, S. B. C., & Falkheimer, J. (2017). How IKEA turned a
crisis into an opportunity. Public Relations Review, 43(1), 246-
248.
Pang, A., Lwin, M. O., Ng, C. S. M., Ong, Y. K., Chau, S. R.
W. C., & Yeow, K. P. S. (2017). Utilization of CSR to build
organizations’ corporate image in Asia: need for an integrative
approach. Asian Journal of Communication, 1-25.
Subramanian, G. H., & Wang, K. (2017). Systems Dynamics-
Based Modeling of Data Warehouse Quality. Journal of
Computer Information Systems, 1-8.
Page 2
Page 3
IKEA furniture Production Company
IKEA furniture Production Company IKEA furniture Production
Company Data
Data forms an important part of business development where it
is possible to achieve a higher level of focus on organizational
success. Data is important within business context since it
provide a crucial environment where it is possible to integrate
important performance strategies based on the available data,
which helps in conducting predictive analysis. Tracking critical
data therefore helps in improving important elements within
that particular aspect within business development. IKEA is a
well-engaged business, which operates various stores across

different countries. Therefore, in this case reliance on data
provides a greater understanding where it is possible to achieve
a greater level of organization development. The furniture
industry is well developed and thus it is possible to achieve a
higher level of understanding where it would be possible to
improve company performance levels (Ngai & Falkheimer,
2017).
Data Item #1
Sales
Every organization focuses on creating a highly developed
business environment where it would be possible to achieve a
higher level of success based on performance strategies that
have been put in place. Ikea has focused on understanding its
sales over the years through collection of important sales data.
Sales data in this case provides focus on the revenues that are
generated by the company through sales of its many products
within the market. Sales data is complex and thus it is important
to achieve a greater level of understanding the contribution of
product that is being sold by the company. Making changes,
which target business performance, should focus on sales data
where it is possible to make informed decision regarding the
best steps that can be undertaken to improve business
development. Achieving success business operations requires
focus on actual data where it is possible to make conclusion
based one specific element that is being investigated
(Koniorczyk, 2015).
Data Item #2
Expenses
Expenses in business development provide key focus on costs,
which are incurred by the company. Therefore being able to
understand whether the company is spending more on expenses

or less is based the expenses data that is analyzed from the
company. Maintaining expenses within the required limits can
only be determined if there is a vital approach that is integrated
within business environment where it is possible to achieve a
higher understanding on these aspects which create a very
difficult setting in order to achieve a greater success that is
strategically developed. Therefore, it is important to understand
that sales and expenses data provide an understanding on
business development setting (Larson & Reichart, 2013).
Data Item #3
Human resources
Human resource data is important in understanding important
aspects such a number of employees, job analysis and job
evaluation processes which are based on important data that is
developed within the company development. Job analysis is an
important process undertaken by human resource management in
order to determine whether a candidate or employee is highly
qualified to take up a given position based on the evaluation of
the job description in place. Therefore ensuring that every
position within an organization is based on relevant
responsibilities and duties play an important role in ensuring
that an organization achieves high level of success based on
effective service delivery from employees (Subramanian &
Wang, 2017).
Human resource planning entails taking into consideration
important operational decisions, which have an integral
influence on company performance as well as human labor
needs. The need to find the right balance between organization
performance and employees needs provides a crucial
understanding where it is possible to achieve a higher level of
organizational success. Human resource planning is a major
concept within business development and thus should be highly
evaluated and ensure that the decision that is made has a
positive influence to organizational performance (Larson &

Reichart, 2013).
Cloud
Storage of data within business environment has become very
difficult considering the high vulnerability and the difficulty in
developing better measures, which have been aimed at creating
a greater level of focus where it is possible to achieve important
business outcomes. Protecting crucial personal information
requires integration of important processes within business
development. Cloud storage is an important process that are
critical evaluation since it provides the best data storage.
Managing data has been a key issue within the company
development process and thus the integration of modern
technology in the company operations has created a diversified
business setting (Subramanian & Wang, 2017).
Cloud Opportunities
Data form the most critical element within any given company
and thus ensuring that it is well protected is a priority. The
importance of data within a given company context depends on
how it is being used, the value it derives from the company as
well as how often the data is used. Information technology has a
significant role within organizational environment since it
provides a higher focus and understanding under which it is
possible to achieve a positive situation where it would be
possible to develop a positive understanding on the existing
aspects within the organizational development (Kalyoncu et al.,
2018).
IS Components (Revisited)
Hardware
Software
Data
Procedures
People
· Furniture1
· Home decor2

· …#
· Sales5
· Expenses6
· Production7
· Distribution8
· …#
Item
Type
Description & Notes
1 Furniture
1Hardware
2 Home Decor
2Hardware
3Inventory database
3Software
4 Software
5Sales

5Data
6Expenses
6Data
7Human resource
7Data
Focus on company human resource key data, which can be
analyzed to provide a greater understanding on company
development.
References
Kalyoncu, F., Zeydan, E., Yildirim, A., & Yigit, I. O. (2018).
An Experimental Study of Factor Analysis over Cellular
Network Data. arXiv preprint arXiv:1803.00932.
Koniorczyk, G. (2015). Customer Knowledge In (Co)Creation
Of Product. A Case Study Of Ikea *. Journal Of Economics &
Management, 22(2014), 107–120.
Larson, A., & Reichart, J. (2013). Ikea And The Natural Step.
Darden Business Publishing, 33.
Https://Doi.Org/10.1017/Cbo9781107415324.004
Ngai, S. B. C., & Falkheimer, J. (2017). How IKEA turned a
crisis into an opportunity. Public Relations Review, 43(1), 246-
248.
Subramanian, G. H., & Wang, K. (2017). Systems Dynamics-
Based Modeling of Data Warehouse Quality. Journal of
Computer Information Systems, 1-8.
Page 2
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MGMT
-
2
2
0: Week
3
Topics Explored
I
KEA furniture
Production Company
DATA
is possible to achieve a higher level of
focus on organizational success. Data is
important within business context since it provide a crucial
environment
where it is possible to integrate important performance
strategies based on the available data, which helps in
conducting predictive analysis. Tracking critical data therefore
helps i
n improving important elements within
well
-
engaged business, which operates various
stores across different countries. Therefore, in this case reliance
on data provides a greater understanding
w
here it is possible to achieve a greater level of organization

development. The furniture industry is well
developed and thus it is possible to achieve a higher level of
understanding where it would be possible to
imp
rove company performance levels (
Ng
ai
& Falkheimer,
2017).
Data I
tem #1
Sales
business environment where it would be
possible to achieve a higher level of success based on
performance strategies that have been put in place.
Ikea has focused on understanding its
sales over the years through collection of important sales data.
Sales
data in this case provides focus on the revenues that are
generated by the company through sales of its many
products within the market. Sales data is complex and thus it is
important t
o achieve a greater level of
understanding the contribution of product that is being sold by
the company. Making changes, which target
business performance, should focus on sales data where it is
possible to make informed decision regarding the
best steps
that can be undertaken to improve business development.
Achieving success business operations
requires focus on actual data where it is possible to make

conclusion based one specific ele
ment that is being
investigated (
Koniorczyk,
2015).
IKEA furniture Production Company
DATA
is possible to achieve a higher level of
focus on organizational success. Data is important within
business context since it provide a crucial environment
where it is possible to integrate important performance
strategies based on the available data, which helps in
conducting predictive analysis. Tracking critical data therefore
helps in improving important elements within
well-engaged business, which operates various
stores across different countries. Therefore, in this case reliance
on data provides a greater understanding
where it is possible to achieve a greater level of organization
development. The furniture industry is well
developed and thus it is possible to achieve a higher level of
understanding where it would be possible to
improve company performance levels (Ngai & Falkheimer,
2017).
Data Item #1
Sales

business environment where it would be
possible to achieve a higher level of success based on
performance strategies that have been put in place.
Ikea has focused on understanding its sales over the years
through collection of important sales data. Sales
data in this case provides focus on the revenues that are
generated by the company through sales of its many
products within the market. Sales data is complex and thus it is
important to achieve a greater level of
understanding the contribution of product that is being sold by
the company. Making changes, which target
business performance, should focus on sales data where it is
possible to make informed decision regarding the
best steps that can be undertaken to improve business
development. Achieving success business operations
requires focus on actual data where it is possible to make
conclusion based one specific element that is being
investigated (Koniorczyk, 2015).
IKEA Furniture Production Company
CompanyBusiness Intelligence
Business organizations focus on putting in place important
strategies where it is possible to achieve a highly integrated and
flexible business environment where it is important to
understand key issues, which define business operations. IKEA
has been well engaged into the furniture industry through
strategic developing of important processes, which have been

influential in improving the company market share as well as
having a successful expansion strategy, which has achieved a
high level of success. Business intelligence is one of the critical
modern technological approaches, which focus on data to derive
important aspects, which define business development (Baier,
Rese & Schreiber, 2016).
Ikea furniture Production Company has significantly integrated
essential business intelligence elements, which have focused on
creating a highly diversified business environment where it is
possible to achieve a greater level of organizational success
through review of its functional strategies, which aim at
creating a diverse focus on key business concepts, which define
business change. The market research strategies that the
company has put in place have focused on creating a unique
business environment where it is possible for the company to
achieve an improved business development. Business customers
are influential to the company growth and thus they are major
drivers of effective business development (Yu et al., 2016).
Opportunity for Improvement
Improvement of business intelligence should focus on customer
engagement where it is possible to achieve a greater level of
organizational performance where it is possible to understand
better ways to engage the market effectively. Customer
relationship management is one of the basic aspects that an
organization must consider in creating a highly engaged
workplace environment where it is possible to achieve a greater
level of organizational success.
The integration of effective customer relationship management
practices create a better environment where it is possible to
achieve a higher level of organizational success based on
customer satisfaction. The CRM practices that have been
included in these companies define the level of customer
satisfaction as described in the framework. The underlying
customers’ needs must be effectively evaluated in order to
create a highly engaged and transformed operational

environment where it is possible to achieve an improve level of
organizational success based on the approaches that are
integrated (Yu et al., 2016).
Risks
The furniture industry has been significantly influenced by the
many campaigns, which have sought to control the rate of
deforestation, which in turn limits the access of raw materials,
which is detrimental to the industry and company development.
Controlling these risks requires significant compliance while
ensuring that tree planting campaigns are organized to control
the negative influence of deforestation which lives the earth
surface largely exposed to global warming and other
environmental harms.
Answers Hidden in the BOI's Data
Question
Course of Action
Question #1
What are the current performance levels of the company
Course of Action #1
Review the company sales and expenses data
Question #2
Re the company employee performing based on the underlying
guidelines
Course of Action #2
Assessment and evaluation of the company employees
Feasiblity Resistance-General
Economic
The company has sought to focus significantly on its expansion
strategy, which have created a highly diversified business
environment where it is possible to achieve a greater level of
organizational success. Therefore, the need to understand the
influence of the key processes that are integrated within
business will be strategically focused on the ability of system.
The application of economic strategies provide a greater

understanding on the need to cooperate with key stakeholders
within business turmoil
Technical
The company has revolutionized its operational environment
through integration of strategy. The company performance
levels have been highly transformed by integration of
technology where it is possible to achieve a greater level of
business development. Management processes, distribution
strategy and supply chain process have been modernized to
achieve an improved business performance. The selected
committee in this case bases resistance on poor communication.
Operational
The company is highly flexible and thus the ability to remain a
market leader within furniture industry is based on the ability of
an organization to achieve a greater level of performance. These
strategies have highly focused on creating a diverse business
development process.
Schedule
Scheduling within the company has been an important aspect,
which is defined by effective planning. Effective supply chain
has ensured that the company is able to achieve a greater level
of success. Therefore, the company development is based on the
ability to integrate important process, which define business
development.
Legal
The company has focused on ensuring high level of compliance
on important legal guidelines, which define business
development environment. Legal responsibilities as explained in

this case provide a greater understanding on the need to obey
the law through compliance. The laws that are put in place such
as environmental protection laws have significantly focused on
creating a highly secure environment where it is possible to
concentrate on other important elements, which define
organizational relation within the government as well as
regulatory authorities (Lindh & Ekman, 2016).
Political
Political issues are crucial and have a detrimental influence on
societal wellbeing since it is important to understand that they
are interlinked with social issues, which have been significantly
integrated within workplace setting.
Managing IS
Management of is components allow strong organizational
support since many of the of these components influence
company performance directly.
IS Components
Is components are essential components, which are crucial in
shaping the underlying focus where it is possible to achieve a
higher level of understanding of critical organizational
structures. The five major components that are included in this
case include Hardware, Software, Data, procedures, and people.
Hardware
Software
Data
Procedures
People
· Furniture1
· Home decor2
· …#

· Sales5
· Expenses6
· Production7
· Distribution8
· …#
Item
Type
Description & Notes
1 Furniture
1Hardware
2 Home Decor
2Hardware
3Inventory database
3Software
4 Software
5Sales
5Data

6Expenses
6Data
Management Challenges
Challenges are bound to occur within a business environment
and thus it is important to achieve a greater level of focus on
improving business performance. The key processes that have
been considered in this case aim at achieving a greater level of
organizational success. Management of challenges within
business development should be focused on achieving a greater.
Developing strong management provide a significant evaluation
on the input which is assessed to shape business performance
levels (Lindh & Ekman, 2016).
Custom Software Development
Employee management software development will provide a
critical environment where it will be possible to manage
employee performance levels across all the company stores with
a key objective to improve company performance levels.Primary
Resource
The human resource department and the information technology
department can help in achieving a greater level of
organizational success where it is possible to achieve a greater
level of organizational success. Collective effort is important in
this case since it shapes business development
successfully.Greatest Feasibility Challenge
Adaptability to the change concept is difficult and thus there is
need to ensure that there is a greater focus on organizational
success as well as the input from other major stakeholders.
Managing IS in a Global Context
The company operates within a diverse international
environment where there has been significant consideration
where it is possible to achieve a greater level of organizational
success. The existing cultural differences across different

countries create a highly transformed business operational
environment (Jakobsson & Fosse, 2014).References
Baier, D., Rese, A., & Schreiber, S. (2016). Analyzing online
reviews to measure augmented reality acceptance at the point of
sale: the case of IKEA. In Mobile Computing and Wireless
Networks: Concepts, Methodologies, Tools, and Applications
(pp. 1714-1736). IGI Global.
Jakobsson, J., & Fosse, N. (2014). A Project Management
Information System with Key Performance Indicators in a
Multi-Project environment-An action research with IKEA AB.
Lin, E. C. H., Shih, Y. C., & Chang, R. C. (2016, July). A
Research on Integrating AR and Multimedia Technology for
Teaching and Learning System Design. In International
Conference on Frontier Computing (pp. 725-731). Springer,
Singapore.
Lindh, C., & Ekman, P. (2016). Integration of Information
Technology in Business Relationships: Implications for the
Extended Network. In Extending the Business Network
Approach (pp. 177-191). Palgrave Macmillan, London.
Yu, Y., Wang, X., Zhong, R., & Huang, G. Q. (2016). E-
commerce logistics in supply chain management: Practice
perspective. In CARV2016–6th International Conference on
Changeable Agile Reconfigurable Virtual Production. Elsevier:
Creative Commons Attribution Non-Commercial No-Derivatives
License.
Page 4
Page 7
CompanyCompetitive Strategy

Competitive Forces
Competitive forces provide a very critical environment where it
is possible to achieve a greater level of understanding where it
is possible to integrate important elements, which help in
defining the underlying level of organizational success based on
existing competition within the business context. The furniture
industry although is not flooded, the existing companies offer
similar products in the market which make it difficult for
consumers to select from the existing companies (Hinterhuber &
Liozu, 2014).
Strongest
Force
BOI Example
Force Strength
BOI Response
The level of competitive rivalry
IKEA has a very competition from companies who have
specifically focused in strategic focus within the market. Major
Furniture companies such as Ashley have created a very
difficult operational environment for IKEA in areas where they
share the market.
The battle for market share has been significant and thus it is
crucial to ensure that the business integrates strategic measures,
which are aimed at creating a highly transformed business
environment where it is possible to integrate critical elements,
which define business development.
IKEA is a strong brand, which has been significantly developed
due to its quality products and service across different markets.
The company has also diversified its operations in creating a
higher level of understanding where it is possible to integrated
strategic focus within the industry
The company has sought to produce high quality products at
affordable prices targeting diverse market in order to embrace
the needs of all its customers.
The company has also integrated a flexible production strategy

where it is easier to create a customized product from
customer’s imagination.
Competitive Strategy Identified
Ikea is one of the well-integrated companies in the world and
thus it operates a very unique strategy, which has ensured that it
remains with a large market share despite the increasing level of
competition due to ease of entry into the furniture business. The
IKEA competitive strategy is developed based on diverse
products in the market, which are affordable to many customers.
It has been able to achieve a greater presence in the market
through combining function, design, values and quality with a
critical focus on sustainability in place. Therefore, the diverse
engagement within the market creates a strategic business
environment where it is possible to achieve a greater level of
customer satisfaction (Laszlo & Zhexembayeva, 2017).
Developing a creative brand identity has been one of the major
positive developments that IKEA has been able to achieve over
the years it has been operational. A key issue in the current
business environment has been the changing customer
preferences. The changing customer perspectives and the market
environment requires quick decision making where the company
can still manage to achieve its target in a very difficult business
environment. Customization has been a key strategy that has
been adopted by IKEA going forward and thus it is developed
on a strong fundamental basis where success is crucial (West,
Ford & Ibrahim, 2015).

IS for Competitive Advantage
The basic organizational strategy is aimed at creating a clear
environment where the company can be well engaged and ensure
that it is able to have a higher focus and influence in the diverse
furniture market. Sustainability and environmental design have
formed key part of the company development process and
remained on course to achieve its long-term objectives. The
ideas of the company and its development strategy have been
customer centered and thus they strive to provide a perfect
home that is a reflection of the owner through production of
furniture that suits different and diverse tastes of customers. It
is not an easy task to ensure that there is a broader focus on the
underlying assumption regarding the success of the company.
Customer satisfaction is derived from a feel good factor that
one is able to have when is having a higher level of engagement
and focus on the company products and services from highly
qualified IKEA personnel and its subsidiaries (Laszlo &
Zhexembayeva, 2017).
Business Processes
An important business distribution process that is crucial within
the company is the Wholesale distribution division, which has
integrated business intelligence, and performance management
systems, which have focused on improving the company
performance levels across its markets. This process provides a
crucial focus on key elements within the company development
strategy and thus it has created a flexible setting where it is
possible to achieve a high level of organization commitment
(West, Ford & Ibrahim, 2015).
Whole sale distribution process
Opportunity for Process Improvement
Improving this process requires critical focus on
implementation of a strategic supply chain management where
all these processes will be reviewed with key focus on the need

to improve company performance levels. Supply chain
management requires critical focus on important elements,
which are critical in improving business operational
environment (West, Ford & Ibrahim, 2015).
open source
The distribution strategy that the company has integrated in this
case is aimed at creating an improved environment where it is
possible to achieve a greater level of understanding on the
processes that have been put in place (Lebherz & Hartmann,
2017).
Opportunities to Use Open Source
Using open source in company management system provides a
unique functional environment where it is easy to integrate
positive organizational development.
References
Hahn, Y. (2015). Ikea And Corporate Social Responsibility: A
Case Study. Science, Technology And Humanities For Business
And Economic Sustainability, 2015 International Conference On
Business And Economics (Icbe2015), 10, 341–346.
Hinterhuber, A., & Liozu, S. M. (2014). Is innovation in pricing
your next source of competitive advantage?. Business Horizons,
57(3), 413-423.
Ikea. (2011). Ikea Group Approach To Sustainability.
Environment, 23.
Ikea. (2013). Place Ikea Furniture In Your Home With
Augmented Reality. Youtube.
Laszlo, C., & Zhexembayeva, N. (2017). Embedded
sustainability: The next big competitive advantage. Routledge.
Lebherz, M., & Hartmann, J. (2017). Applying the value grid
model to the furniture industry: the example of IKEA.
West, D. C., Ford, J., & Ibrahim, E. (2015). Strategic
marketing: creating competitive advantage. Oxford University
Press, USA.

Page 3
CMIT-210: Week 1 Topics Explored
IKEA Furniture Production CompanyExecutive Summary
IKEA is one of the leading furniture manufacturers globally
with a significant market share. The company has remained a
market leader in the furniture industry for a very long time due
to its strategic and sustainable engagement. IKEA is a privately
owned company that has integrated quality organizational
strategies to attract the global market. The corporation was
formed in Sweden although it is currently based in the
Netherlands with a worldwide presence in all types of furniture.
The company operates at least 313 stores in more than 37
countries, and it is highly engaged in Asian, North America,
Australia and Europe. The company has adopted a significant
expansion strategy that has been mostly successful.
IKEA has developed a significant focus in the production of a
wide range of products within the industry making it an all-
inclusive, one-stop shop for both office and home furniture at a
relatively affordable price, which has seen the company
improve its global presence. The products that are offered by
the company are unique of high quality that makes it stand out
from other furniture companies in the world. IKEA is one of the
few foreign companies that have had significant dominance in
the United States furniture industry for a very long time. The
company is engaged in the production of different types of
products including indoor gardening products, outdoor
furniture, babies, and children furniture. These different types
of products are developed strategically to exhaust the furniture
industry having utilized the existence of gaps in the market to
create a unique global brand (Hahn, 2015).

The development of IKEA to global recognition is not by
chance but a series of hard work and strategic leadership that
has ensured that the company remains on course to achieve both
its short-term and long-term goals. The company mission,
vision, and goals have represented its general engagement and
focus on the furniture industry that has spearheaded the
company growth. The company has put in place a strategic
vision that focuses on creating a better daily life for many
people through support of what they envision in ideology and
transform customer's ideas into reality through the development
of high-quality self-reflection products that define an
individual. The affordability of the company products has made
it possible for the company to ensure that many people can
realize their dreams through the image of IKEA. The
fundamental values that have streamlined the company
operations include leadership, togetherness, and enthusiasm,
striving to meet reality, daring and simplicity. These values
form the foundational engagement of the company within the
furniture industry (Ikea, 2013).
Justification of the choice business of interest
The furniture industry has become one of the most competitive
industries globally with many designers creating innovative
designs to capture the attention of diverse customer preference
within the market. The changes that have been integrated into
the industry are based on technological changes as well as the
improving customer demands which are pushing manufacturers
to seek new production strategies to meet the needs of
customers. Ikea is one of the most successful companies in the
industry and thus focusing on the company provides an integral
focus where it would be possible to understand critical aspects
and trends within the furniture production industry.
IKEA has primarily been successful through its strategic
engagement and its high-quality focus on diverse markets and
significant expansion strategy that has mostly been successful.
The emerging markets have formed a key target market for
IKEA, and it has developed procedures to ensure that it is

successful. The company has experienced significant
impediments in its focus to expand into new markets. Despite
being a globally recognized brand in the furniture industry, it
has faced challenges based on the cultural diversity, ethical
concerns and legal issues regarding its operations in new
markets. These underlying issues have limited the overall
development of IKEA ad position itself effectively to achieve
significant success from a global perspective. Therefore having
an understanding of these concepts provide an integral focus on
better understanding of the whole industry since these issues
faced by companies within the furniture industry (Larson &
Reichart, 2013).
IS components
Is components are essential components, which are crucial in
shaping the underlying focus where it is possible to achieve a
higher level of understanding of critical organizational
structures. The five major components that are included in this
case include Hardware, Software, Data, procedures, and people.
Hardware
Software
Data
Procedures
People
· Furniture1
· Home decor2
· …#
· Sales5
· Expenses6
· Production7
· Distribution8
· …#

Item
Type
Description & Notes
1 Furniture
1Hardware
2 Home Decor
2Hardware
3Inventory database
3Software
4 Software
5Sales
5Data
6Expenses
6Data
Collaboration
Collaboration happening now
The company has been significantly engaged in diversifying its

operations into new markets through strategic collaborations.
Recently the company has collaborated with Chris Stamps
STAMPD in a bid to improve customer experience in today
modern home. Fusing together the concepts of art and design
provide a highly integrated setting where it is possible to
achieve a higher level of customer satisfaction. Another
collaboration that the company has successfully had is with
OFF-WHITE which is also based on a greater focus on the need
to integrate quality design in the company products in
improving customer experience (Ikea, n.d).
Risks and challenges
The changing operational landscape has created a very
compelling environment for IKEA to develop high-quality
engagement within its diverse presence within the global
environment. Each country has its own culture, and thus it has
been a significant challenge for IKEA to ensure that they put
into consideration the demands and preferences of all of its
customers, which a considerable aim to create an improved
environment where the company can have a higher, level of
focus.
Increased competition is not always a positive move to any
business, and thus every organization makes sure that they
exhaust the market and leave a minimal space for their
competitors. The inability of IKEA to find a way into the Indian
market is likely to increase the chances for other companies
who are willing to meet the existing legal constraints regarding
the operation of foreign companies. The overall environment
under which positive business engagement can be done is based
on total compliance with the existing regulations (Löfgren,
2015).
Opportunities for improvement
The furniture industry is diverse and thus there exist significant
opportunities which the company can consider to achieve a
higher level of engagement within the market. The existing
considerable transformation that has been organized is based on

critical understanding of important elements, which shape the
company development. Strategic partnerships are likely to
provide the company with the much-needed space to expand.
Proposed Collaboration Tool
Collaboration with technology companies is a critical aspect
that will likely help improve the chances of the company in the
market despite significant challenges that have derailed the
company development process. Collaboration with technology
companies will mean that the company will enjoy unlimited
traffic flow of customers within both its physical shops as well
as improving its online engagement. The business environment
is profoundly changing, and thus there is need to make strategic
decisions.
References
Hahn, Y. (2015). Ikea And Corporate Social Responsibility: A
Case Study. Science, Technology And Humanities For Business
And Economic Sustainability, 2015 International Conference On
Business And Economics (Icbe2015), 10, 341–346.
Ikea. (2011). Ikea Group Approach To Sustainability.
Environment, 23.
Ikea. (2013). Place Ikea Furniture In Your Home With
Augmented Reality. Youtube.
Koniorczyk, G. (2015). Customer Knowledge In (Co)Creation
Of Product. A Case Study Of Ikea *. Journal Of Economics &
Management, 22(2014), 107–120.
Larson, A., & Reichart, J. (2013). Ikea And The Natural Step.
Darden Business Publishing, 33.
Https://Doi.Org/10.1017/Cbo9781107415324.004
Löfgren, O. (2015). Design By Ikea. A Cultural History. Design
And Culture, 7(3), 467–469.
Https://Doi.Org/10.1080/17547075.2015.1105510
Page 2

Business of Interest (BOI) Name
Business of Interest (BOI) NameBusiness of Interest (BOI)
NameIS Department
Does your BOI have an IS department? If so, is it responsive to
the needs of the business? Is IS support outsourced? Diagram
the IS Department and the business units it supports. Is the IT
department or those doing IT support too removed from the
BOI’s function? Does the IT department fully understand they
are there to support business? If not, what suggestions do you
have to help better align them with the BOI and its primary
function?
Diagram of IS Department
Goes Here
Outsourcing
What examples of or opportunities for IS outsourcing exist at
your company and what are the advantages and disadvantages?
IS Disaster Preparedness
Describe the IS disaster preparedness plan. What improvements
are needed?Business Organization
Diagram the BOI organization.
Suggested Organizational Changes
Do you have any suggested changes to the current way the BOI
is organized? Why or why not?
Security
List and justify the top three threats your BOI faces.

#
Security Threat
Description & Justification
1.
Security Threat 1
Threat 1 described and justified.
2.
Security Threat 2
3.
Security Threat 3
Mitigating Security Risks
Describe existing safeguards. Recommend safeguards if the
existing safeguards are inadequate.
#
Security Threat
Existing Safeguards
Recommendations
1.
Security Threat 1
2.
Security Threat 2
3.
Security Threat 3
IS componentS (Finalized)
Based on the topics explored this week, include any items

previously unidentified as an IS Component. Add a footnote
about how it was discovered and how it fits into the IS.
Hardware
Software
Data
Procedures
People
· Item
· Item
· …
· Item
· Item
· …
· Item
· …
· Procedure
· Procedure
· …
· Person
· Person
· …
New Item
Component Type
Description & Notes
Item 1
Item 2
…
…

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