IKEA operations management

Operations Management

Critical Evaluation of Relevant Issues - IKEA case

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Table of Contents

Executive Summary

Operations Management is how organizations green goods goods and services (Slack et all, 2010).

Organizations must be able to align their processes to fulfill customer requirements and ensure they are satisfied, which leads to careful planning and if fortunate to a competitive lead.

This reports focus on IKEA, and how IKEA trading operations vigilance has made them one of the leaders in retail in the world, with a deep analysis of IKEA corporate organization and operations management.

Introduction

IKEA is the most successful piece of furniture retailer in the world. The product line consists of well-designed furniture at low prices. During 2011, IKEA has reported 25.2Billon Euro total revenue and 2.966Million Euro give the sack income. This success was not achieve in one day; it took long time and careful planning in order to achieve customer requirements

Company profile and Situational Analysis

IKEAs is global organization with gross sales in more than 250 own stores in 24 countries and 32 external franchisees in 16 countries. The stores are supplied through 31 distribution centers, or directly from the 2000 suppliers in more than 50 countries. IKEAs tally reach consequently has a global spread with both sales and purchasing in all major regions of the world. IKEAs growth has been wonderful and sales are still growing. Currently IKEA plans to open 10-20 recent stores all year with a goal to double sales within the coming five year (IKEA, 2012).

Considering the pace of growth in sales, the many stores and warehouses, and the fact that slightly business areas change up to 30% of its assortment every year, supply chain planning is a real challenge. The supply chain needs tight control and...

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