Pestel Analysis of the IKEA Corporation

Pestel Analysis of the IKEA Corporation In this research report Author have identify business strategy about IKEA as an organization, the first part of this research is about introduction of IKEA which explain all initial information and its process from Supplier to customers. Next part contain literature review that try to identify what is the different between operational and tactical planning, it also analysis and rational with IKEA. Middle part of this research contains SWOT and PESTEL analysis of IKEA with theatrical background and explains each and every factor which can effect in business operational and tactical planning. In last Author has concluded this research with conclusion about over important of strategy in business. Introduction: Business strategy itself shows that strategy needs for every business. To achieve object in certain time period, each and every organisation required strategy and to stay top on the table need better strategy then the other competitors (Houston, 2002) The reason to make strategy is to make business fit into its environment. So that every time you should change strategy according to environment (Houston, 2002) Business strategy is nothing but make a plan and take decisions, and using that plan and decision achieve greater profit and success in decided time (Kourdi, 2009) By making strategy organisation can know where resources like finance, people, effort, technology should be concentrated (Kourdi, 2009) Literature Review: Swot analysis: When an organisation is in hard market situation it needs measurement to find out current situation and find the right strategy to achieve object (Bohm, 2008) Where is the company right now? Whats the strength of the company through which company have an edge than others. To neutralize weakness of the company any organisation should know which the weaknesses are and how its damage the success ratio (Bohm, 2008) Its also important to know which possible threats and opportunities can be expected from around the world. Through SWOT analysis any organisation analyse companies strengths, weakness, possible threats and opportunities. Opportunities and threats investigates internal and external as well as positive and negative factor of a corporation (Bohm, 2008) Strengths -supplier -Production -Distribution Weaknesses -What are our weaknesses as well as should know competitors Opportunities -What opportunities are in front of us based on market size, consumers requirements and their chaining trends, gaps in our product line, service and distribution Threats -Internal threats -External threats -Based on our weakness and competitors Strengths, changes in technology. Figure1.1. Elements of the SWOT analysis: (Mello, 2002) PESTEL Analysis: Expansion and improvement in business totally depends on any organizations Pestel analysis. Pestel analysis is very useful tool to measure and examine the environmental influences of political, economic, sociological, technological, environmental and legislative (Craig, 2005) Political Environment Sociological Environment Economic Environment CORPORATION OR INDUSTRY Technological Environment Environmental Environment Legislative Environment The activities of competitors, suppliers, customers always leads organisation to force the change the strategy. Customers who change their requirements by the time, competitors who merge within the industries may require the organisation to improve the structure, culture or other internal feathers to stay and compete (Craig D. J., 2005) It is important to have business strategy to a number of stakeholders. Groups or individuals having an interest in the activities of an organisation, stakeholder groups are relatively simple for commercials organisation and more complex and countable for not-for-profits organisations (Strategy, 2005) Requirements to implement a new strategy: As requirements of consumers are always varies, for that reason every time it is important to implement a new strategy to sustain in market among the competitors (Houston, 2002) Implement a new strategy means change current strategy in all factor means technological, change in production line, improving in storage and distribution. Organisational Analysis: Ikea is very well-known private limited company, which offering well designed and functional home furnishing products at low price. So many people can afford to buy. Ikea the brand name is basically associated with founders name, Ingvar Kampard who is born in southern Sweden and raised on Elmtaryd a farm near the small village of Agunnaryd. Inter Ikea system B.V.1999 2010 The founders main goal is To create a better everyday life for the many people. In the early age of five founder starts to selling matches to his nearby neighbours and the age of seven he starts to sell matches in bulk at a low price but still make good money. After that he expands to selling flower seed, greeting cards, Christmas tree decorations and later pencils and ball-point pens. In 1943 Ingvar Kampard established his own business and in 1951 first Ikea catalogue is published. In 1953 first Ikea showroom is born and within short time of period more than 35 countries has more than 315 stores. Ikea mainly decide the price and according to price they design the product. Ikea offered a low price of any product because of customers contribution. Customers come in the stores and choose their products with an easy-to-read and clearly mentioned all needed information on the tag and collect and transport and assemble by themselves. That is the idea behind: You do your part. We do our pa rt. Together we save money. (Hartline, 2008) Inter Ikea system B.V.1999 2010 Ikea is also well known for its charity work, Ikea working together with UNICEF to save the children around the world. Ikea donate one euro for every soft toy sold in stores during a certain period each year. In India they providing medicines and essential requirement to children and trying to stop child labour. Inter Ikea system B.V.1999 2010 SWOT analysis for Ikea In this tuff economic condition and with the number of competitor around the world, any organisation must know their Strengths, Weakness, Opportunities and Threats. Ikea uses SWOT analysis to reach its objectives. Strengths and Weakness are internal factors of the business. They are controlled by within the business. Opportunities and Threats are external factors, which are outside the control of business. Marketing, product cost, finance, manufacturing, business structure and strategy are counted in internal factors. Likewise environment, economic condition, competitor, technology advances, social changes, culture, political law are consider as external factors (Hartline, 2008) Strengths: One of Ikea main strengths are they develop products with flat packing and easy assemble by consumer. So not require massive storage and transportation is very ease for supplier and consumer. Good quality with a wide range of choice at all times that makes customers always willing to buy. Ikeas business strategy is produce environmental friendly products means they using renewable and recyclable raw materials such wool, cotton, glass, metal and rattan. Inter Ikea system B.V. 1999 2010 A well planned design products which works very functionally and reduce the price and attract the customers (Hartline, 2008) Ikea create loyal suppliers by committing to buying in large volumes for long period. So that they can negotiate for low price for customers likewise security for suppliers of having guaranteed orders (Hartline, 2008) In Ikea all are same. Ikea treat everybody same way. So companys anti-bureaucracy weeks helps to create good corporate culture (Hartline, 2008) Ikea has own designer to design the product according to cost. So Ikea can keep price low as they want. Inter Ikea system B.V. 1999 2010 Some of their products are produced in some countries where labour cost is very low compare to other countries. Inter Ikea system B.V. 1999 2010 Weakness: Ikea should know their weaknesses to improve their services and expand the business around the world. The expansion of the business always creates difficulties to maintain the standard of quality and customer satisfaction. Its also difficult to keep environment healthy for a large organization. Ikea has the business in more than 35 countries. Supply products with same good quality are hard for them. Ikea must keep communication to suppliers and consumers to maintain the standard of business, for a large business is not easy. As a business of furniture and all household products made from the plastic, wood, glass, rubber, paper, chemicals, it is hard to maintain environmental standards. Ikea believe in low price and good quality. For that Ikea needs to differentiate how they can be chipper with a good quality than the competitor (Hartline, 2008) Do it your self-system: Ikea is believes in self-serve approach but some customers who earning more salary, may not like to go warehouse and picking out their furniture. Some customers may not have time to assemble their furniture once they get it home (Hartline, 2008) Opportunities: Ikea should use its strengths and brand name to take advantage coming opportunities in the world. Making environmental friendly products can be useful in price sensitive market. As the company states: There is a true business potential for IKEA in providing solutions that enable customers to live a more sustainable life at home. IKEA is developing effective solutions for customers in order to support them recycling or reusing used products, aiming at no products ending up at landfill and the recycled materials used in producing new IKEA products. (The Times 100) Ikea should produce more and more products from materials that can be recycled and should develop technology to reduce carbon footprints and use of water. Ikea should use more and more renewable energy so they can keep price low as much as they can and attracts the more consumers in current financial climates. By providing better customer services by their co-worker, by telecommunication or by media or taking opinion from peoples they can sustain in the market. Threats: By knowing the possible threats each and every organization can be prepare for better business strategy. Ikea should know the external and internal threats. Competitor: competitor consider as an external threats. Having with better business strategy like low price with better quality, better customer services, good communication with consumer and supplier (Hartline, 2008) Competitor can come with better technology edge. So to avoid this threat Ikea should be more adoptable (Hartline, 2008) Culture: Culture is also playing part as major threats. Ikea has a large business around the world where people with a different culture and different attitude. This culture can be changed by different methods like training programme, changing people or giving them satiable jobs, totally giving new structure or appearance (Pfeiffer, 1993) PESTEL analysis for Ikea Political: It is important to make number of observation regarding political changes in the world or country where you doing business because uncertainty of political environment could have massive impact on business (Britton, 2009). Changes in political environment also emanate from a countrys institutional arrangements (Britton, 2009). Ikea should analysis of political environment because each and every country has own rules. In some country political is very stable and providing good infrastructure for the business. Economic: Economical effects means any business organization concerned with imports or exports will be affected by many ways like taxation, interest rates, employment levels and Inflation, Economic condition of ones countries means spending ability of consumer force to change any organizations strategy and products services. In some countries you should concern about economic condition before starts the business. Business strategy should be fine according to countries economic condition so most of consumer can afford to buy your products (Craig, 2005) Ikea can achieve its vision to create a better everyday life for the many people by considering economic condition of countries. Sociological: Sociological effects means particularly any countrys demographic profile such as the increasing birth rate or decreasing death rate or unbalance in genders or increasing population can affect any business (Craig, 2005) To finds more flexible people just because of their geographical or social condition leads the shortage of skilled worker. This can pressurise organisation to move new location just to find out technological solution (Craig, 2005) Technological: Technological developments in recent years are significance. If you want to sustain in the market among the competitors you must have edge in technological improvement (Craig, 2005) Any organisation should be ready to adopt new technology. The business depends on how you marketing the product, which technology you are using for production and distribution and for storage (Craig, 2005) Environmental: Every country is very concern about their environmental condition. Change in climate for last couple of years just because of human activities has made aware everybody. To expand the business every organization should analysis of environment. (Britton, 2009) In every country requirement of products is always varies according to their environmental condition. Organisations required being in the leading position of making possible changes rather than coming from a catch-up position. Every organisation needs to respond to green issues are voiced by customers or community groups. (Robert Dransfield, 2004) Legislative: Legislation includes certain factors like employment law, taxation law, companys own law, health and safety law, patent law, industry regulations (Sinclair-Hunt, 2005). In business strategy you should concern legislation. Legislation is a part of business. Reducing union power was perceived as economically essential for freeing the labour market and hence rejuvenating the economy through the free play of market forces (Undy, 1996). Conclusion: As a worlds biggest retailers Ikea should counts numbers of thing to capture the maximum market among strong competitor. They should use more and renewable energy for their business to reduce the price of products and to reduce carbon foot-print. Ikea have good name around the world for their products with good price with good quality and to sustain the image they should know their internal and external threats and should try to come over. As a large business they should have good communication with suppliers and with consumers. By adopting latest technology they can be ahead of competitors. Using waste or damaged material they can produce product and can save environment.

Americas Cuban Conundrum

MARKETING 505 Assignment #2: Case 5-1 â€Å"America's Cuban Conundrum† ABSTRACT This paper analyzes the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. It will decide who benefits and who suffers from an embargo of this type and it explains the rationale behind the conclusion. It also presents a resolution to the trade situation between the U. S. and Cuba. Finally given the trade relations it determines what type of economic barriers would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Assignment #2: Case 5-1 â€Å"America's Cuban Conundrum† In 1996, President Bill Clinton signed the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The President’s actions came after Cuban MiGs shot down two U. S. civilian airplanes, killing the four Cuban-American who were on board. † (Green & Keegan, 2011) The Helms-Burton freezes the embargo against trade with and investment with Cu ba. It is a controversial act since it arouses a lot of negative attention on how the U. S. government is manipulating its power to impose its political views on other countries’ economies.The key issue -that prompted the EU to take the Helms-Burton dispute to the WTO -was mainly because they felt that it violated international rules dealing with trade. The EU had a dispute with the U. S. regarding testing agriculture, trade and investments and biotechnology issues which was brought to the attention of the WTO. It felt as if the United States was unlawfully exercising its jurisdiction extraterritorially, in that it was threatening to punish lawful activity such as trade, investment, and tourism carried out by the residents of independent countries. It is no exaggeration to say that U. S. olicy toward Cuba is now rejected and sharply criticized by the rest of the world. Other nations point out, moreover, that while America insists on maintaining its embargo and other pressures against Cuba because of the latter's human rights abuses, the fact is that Washington has close relations with–and extends Most Favored Nation treatment to–the People's Republic of China, Vietnam, Indonesia, and other states that are no more democratic than Cuba and have far worse human rights records, arguing that engagement, trade, and dialogue will do more to bring change in those countries than isolation. (Smith, 1998)It is obvious that the embargo affects a great number of people. To be all fair and neutral it would be necessary to highlight that to a certain extent, both countries are suffering and their benefits are minimal from this embargo. If it was to cease and somehow both countries came to an agreement and decided to put it all in the past and start from fresh, they would both benefit greatly. Production would increase and the producers on both countries would prosper. Cuban resources would be available to the U. S. Market and American producers would imp ort cost effective products that are not available in Cuba.An increase in capital from investors would make the economy run and prosper. A resolution to the trade situation between U. S. and Cuba represent the lifting of abolishment of the embargo. Castro’s regime and that of his successor, his brother Raul, have always talked a good anti-embargo but have not made the least effort to walk the talk, since this embargo may constitute the real reason of their continued hold on power since it gives an â€Å"antagonist† to the Cuban people, to the Cuban progress and it gives them an enemy to blame for the failure of Castro’s socialist revolution.In the U. S. there has been a lot of talk as well. President Obama was in favor of lifting of the embargo in 2004, ever since his views and actions changed, however he continued on implementing new policies that are in favor of establishing some type of relationship with the Cuban community. In 2004 President Obama who was th en a senator said: â€Å"I think it’s time for us to end the embargo in Cuba,† the then-Senate candidate said. And I think that we have to end it because if you think about what’s happening internationally our planet is shrinking, and our biggest foreign policy challenge — and it fits directly into the battle on terrorism and it fits into issues of trade and our economy — is how we make sure that other countries, in developing nations, are providing sustenance for their people, human rights for their people, a basic structure of government for their people that it’s stable and secure so that they can be part in a brighter future for the entire planet. And the Cuban embargo has failed to provide the source of raising standards of living and it has squeezed the innocents in Cuba,† Mr. Obama continued, â€Å"and utterly failed in the effort to overthrow Castro, who’s now have been there since I was born. So, it’s time for u s to acknowledge that that particular policy has failed. † (Speigel, 2009) But in 2008 he declared the opposite: â€Å"I will maintain the embargo,† Mr.Obama said in a speech in Miami on May 23, 2008. â€Å"It provides us with the leverage to present the regime with a clear choice: if you take significant steps toward democracy, beginning with the freeing of all political prisoners, we will take steps to begin normalizing relations. That’s the way to bring about real change in Cuba – through strong, smart and principled diplomacy. † (Speigel, 2009) For change to come about, a major event will have to take place.This situation seems like a non-negotiable on both sides where for the past 50 years they have agreed on disagreeing which isn’t the way to change the lives of all those people suffering and all those people that in one way or another are being affected negatively. In the unexpected event that trade relations resume between the U. S. a nd Cuba, some of economic barriers that would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Firms will always be alert to any risk or uncertainty that can bring about the loss of assets or revenue due to unstable legal processes or corruption.Seizure of Assets for example: â€Å"The ultimate threat a government action to dispossess a foreign company or investor. † (Green & Keegan, 2011. ) Nationalization, expropriation are eminent threats in country with a dictatorship such as Raoul Castro and Fidel Castro. There would have to be some specific amendments to the international law which will pretty much guarantee to the firms and investors, any assets invested in the Cuban Market. Firms and Investors would have to take extra steps in order to protect their selves and clearly recognize the levels of juridical power for Cuba and for the U. S. s well as proactively protect against corruption and piracy which could be a primary issue in Cuba, with a strong intellectual property protection strategy. Any and all can be done once the embargo is lifted, but this would be the first step to greater changes and reforms, without it everything is only assumptions. This paper analyzed the key issue that prompted the EU to take the Helms-Burton dispute to the WTO. It decided who benefits and who suffers from an embargo of this type and it explained the rationale behind the conclusion. It also presents a resolution to the trade situation between the U.S. and Cuba. Finally it has determined what type of economic barriers would have to be overcome by a U. S. firm to conduct business successfully in Cuba. Work Cited Green, M. , & Keegan, W. (2011). Global marketing. (6 ed. ). Upper Saddle River, NY: Prentice Hall. Speigel, L. (2009, April 17). Presiden obama-who once supported, but no opposes, lifting the embargo-seeks â€Å"new beginning† with cuba. Retrieved from http://abcnews. go. com/blogs/politics/2009/04/president-ob-19/ Smith, W. (1998). Our dysfunctional cuban embargo.. (Vol. 42).

The Book Thief Essay

Describe at least ONE character or individual you enjoyed reading about in the text(s). Explain why the character(s) or individual(s) helped you understand an idea in the text(s). History and especially World War Two is a testament to the duality of human nature. Jeffery Kluger in an article for Time Magazine reflects on this aspect of human nature. â€Å"The madness {lies} in the fact that the savage and the splendid can exist in one creature, one person and often in one instant. I enjoyed reading about Liesel Meminger in the novel The Book Thief by Markus Zusak. Liesel is nine years old and lives in Nazi Germany. In the early chapters of the book we learn that her younger brother has dies, her father is missing ad her communist mother has arranged for her to be adopted by Hans and Rosa Hubermann. It is while Liesel is living in the Hubermann’s household on Himmel Street that readers engage with her rite of passage and her witness of the extreme ugliness and beauty of human behaviour.Liesel is a moral compass, helping the reader to understand the idea that we can counter loss and hatred with the power of words and acts of compassion. Liesel helps the reader to understand the idea that we can counter loss and hatred with the power of words and acts of compassion through her relationship with Max, a Jew hidden by Han’s Hubermann in his basement. Living in a suffocating Nazi era, Liesel still manages to form a loving and secretive friendship with an unlikely Jew that allows the reader to be engaged and feel too the emotions shared between Liesel and Max. They were the erased pages of Mein Kampf, gagging, suffocating under the paint as they turned† this is an example of the many counter words of hatred entwined with the words of love. One of the smallest treasures in Liesels life is the power held within her stories and imagination. Max and Liesels friendship takes height when Max gifts Liesel a story created by him called The Standover Man. T he story portrays the image of a weak Jew finding hope in a small girl, the story of Max and Liesel. â€Å"Now I live in the basement. Bad dreams still live in my sleep.One Night, after my usual nightmare, a shadow stood above me. She said, ‘tell me what you dream of’ so I did. † A further example of the counter hatred and loss is shown when Max asks Liesel to tell him what the weather is like outside, in the world above his concrete live. â€Å"Often, I wish this would all be over Liesel, but then somehow you do something like walk down the basement with a snowman in your hands† this quote expresses the life that Max is living and how Liesel can bring him moments of hope and joy and promote optimism for an outcome at the end of this life.As a member of the Hitler Youth, Liesel is taught that Jews are inferior to the German race. This quote is an example of counter hate and teachers the reader of the trust and compassion shared by Liesel and Max; despite t he dictating Nazi propaganda, Liesel forms her own opinions and allows the reader to follow her example by looking at Max in a positive light and find the true beauty of human nature. Also, Liesels relationship with Han’s Hubermann helps the reader to understand the idea that we can counter loss and hatred with the power of words and the acts of compassion.An example of this is shown in the first chapters of the story where Liesels brother dies on their dreadful train journey to Mochling. Liesel has nightmares every night about this tragic event and Hans’ acts of compassion counter the loss in Liesels life. Liesel and Hans share a loving Father, Daughter relationship shared once again between their love of reading and imagination. Hans and Liesel share a loving relationship in Liesels time of need and Hans offers countless love and support.From her first arrival at Himmel Street, Liesels relationship with Hans is shown, ‘Hans Hubermann had just completed rolling a cigarette, having licked the paper and joined it up. He looked over at Liesel and winked. She would have no trouble calling him Papa. ’ Hans is the antithesis of Liesels foster mother, a compassionate being with a calm tone of voice. After Liesels embarrassing bed wetting incident, Hans’ role as a passionate Father is shown. Hans and Liesel share a common interest of reading and writing and as Hans teaches Liesel to read and write, he teaches himself to advance his reading skills.Liesels incident of loss with her brother in countered when Hans hangs her sheets and says ‘let the midnight class start’. Hans teaches the reader than a sharing of common interests in key in a child’s development and allowed his relationship with Liesel as her Papa to really progress because they shared a mutual interest in the arts of reading and writing. Further, Liesel helps the reader to understand the ideas that we can counter loss and hatred with the power of words through her actions related to books and reading.In life, we as readers find that stories are means of escape – imagination is one place we can control in even the darkest of times. Liesel shares a mutual relationship of loss with Isla Hermann, the mayor’s wife. Isla lost her son in a fatal incident with a barbed wire fence and uses her library and books as a means of escape from reality. Liesel and Isla share a mutual passion for books and reading and find a friendship forming because of this. Liesel is denied very few joys in life because her family’s economic position and she steals books as a means to fulfil her empty void.She however is taken aside when she is shown the massive library located and Isla Hermann’s abode and Death narrates â€Å"it was one of the most beautiful things Liesel Meminger had ever seen† Both Liesel and Isla counter loss and hatred with the power of words through her actions related to books and reading. Liesel is mos t certainly a moral compass, helping the reader that we can counter loss and hatred with the power of words and acts of compassion.The reader further engages with her rite of passage and her witness of extreme ugliness and the beauties of human nature. Liesel in The Book Thief is a character I enjoyed reading about. She allows the reader an intimate view of one of the most shameful periods in human history yet in doing so she reminds us of some of the most compassionate acts in human history. Markus Zusak, like his character Liesel, uses powerful words to manipulate and engage the reader so that we never forget the duality of human nature and the need for compassion in the face of brutality.

Essay on Sociology Interview - 878 Words

In my interview I chose my girlfriends neighbor. Hector is of Mexican decent and he is here because in Meigs county the produce fields hire Mexican laborers on worker permits. Hector started out doing this then he became the boss about five years ago and received his green card and now is an American and can speak very good English. He explained to me that in Mexico there is no age when you can start working so there are young boys working at six to ten years old to help support his needy family. He also stated that women do not usually work they are only aloud to go to the village markets and get goods for their familys and raise there many children. I asked about minimum wage and he kinda laughed and said some teens and men who work†¦show more content†¦He said that female children usually do not work they go with there mothers to market and get the bare essentials they need. I asked what do they do with the rest of there time and he said a trip to the market could take al l day because they bargain shop. The second topic that we both actually wanted to talk about was the wages of workers. He was sure to let me know that Americans have it great with the minimum wage law, because in Mexico they have no such law. I asked him when he worked in Mexico how much he got paid and he said I worked at the same job for the same company for 10 years and my maximum pay was $6.50, but when I started I got $.50 an hour. He also said that when he was chose to come work in the fields all over America that he was getting paid on commission because since he was not an actual American resident he could not get minimum wage. I work as hard as I could and went as fast as I could to pick all I could to send the money back home where it was needed Hector said. The third thing that we talked about was the usage of labor unions in Mexico in association with A merican labor unions. 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