This PP includes some of the strategic management plan of IKEA, it is part of the strategic management course project.

1. IKEA Strategic Management Project
Part 2
MGT427 – Spring 2019
College of Business
Effat University, Jeddah.
Done By:
Rawan Nadeem
Walaa Barayan
Omniah Qurun
Yusra Al Krait
Waad Al Sobhi
Relam Al Qarni

2. Outline :
• Strategic Alternatives and Recommendations Based on SWOT
o Objective and Mission
o Linking objectives to the mission
o Strategic alternatives and options
o Recommended strategies and areas of improvement
• Implementation
o Requirements
o Challenges
• Evaluation and Control

3. • Current Mission:
To create a better everyday life for the many people
• Current objectives:
To offer a wide range of home furnishing items of good design and function, excellent
quality and durability, at prices so low that the majority of people can afford to buy
them
• IKEA uses SWOT analysis to help it reach its objectives.
Objective and Mission :

4. SWOT

5. SWOT (Cont.)

6. Strategic Alternatives
• Strategies for their people
• Growth
• Sustainability
• Customers
• Cost

7. Recommendations Based on SWOT
• Focus on sustainability.
• Consider development and training employee.
• Expanding its market around Saudi Arabia
• Keep providing good quality and low price of
products.

8. Requirements
Employees Growth
Customers
Satisfaction
Lower cost

9. Challenges
• Aligning team members.
• Resistance to Change.
• Implementing strategy involves change.
• Allocating the right resources at the right place
and time.

10. Overcoming the Challenges
• Allocate clear and detailed responsibilities and accountability.
• Identify key performance measures and actions to be taken to
achieve the strategic objective.
• Create an information system to record the progress.
• Clarify all strategies to the employees.
• Allocate resources based on value contribution.

11. Evaluation and Control
• Tools That used to Keep Everything in Control:
o Sales Tree
o Brand
o Employees
• Key Performance Indicators (KPI):
o This method support IKEA to evaluate and estimate the progress of its vision and
long-term goals through determining objectives and controlling progress to
accomplish it.
o This guideline determines the social and environment requirements that IKEA look
about it from its suppliers.
o They mentioned that their KPI categories generally covered targets.
o At the end, they stated that IKEA always want to focus on everything, because all
are important.