Ikea Example Essay Example
Ikea Example Essay Example

Ikea Example Essay Example

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  • Pages: 2 (474 words)
  • Published: November 14, 2017
  • Type: Case Study
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The analysis of bottlenecks in the operations management process within KEA stores will be conducted. Operations management encompasses designing, reviewing, and using the operating system to achieve service outputs for customers (Wright, 1999). In our daily lives, every product or service we use is a result of an operations or process. The primary focus of operations management is meticulously managing the production and distribution process for a business' products and services. This study examines various aspects such as product manufacturing, design, development, production, distribution logistic operations, inventory control and management, supply chain management systems, quality control and monitoring, storage, and market evaluation within KEA's retail chain. The objective of this research is to evaluate KEA's strategic positioning, competitive characteristics, and global performance with a specific focus on three factors: 1) Operations strategy and competitive priorities; 2) Process flo

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w of the operation; 3) Bottlenecks in the operation. The capacity issues in the research methodology involve various methods such as questionnaire surveying,
assessing data interpretation,
direct or indirect interviews,
and collecting relevant data from databases.The primary focus of the research is to understand KEA's operations management process. To do this, secondary data from various sources such as management journals, textbooks, websites, and brochures were collected and analyzed. Qualitative methods like customer reviews, personal discussions and interviews with employees, and secondary sources like the KEA website and journal articles were used to gather data.

By studying the detailed information on the KEA website, insights into the company's culture, business strategies, and history were obtained. Taking advantage of a significant increase in household furniture prices between 1935 and 1946, KEA expanded their business globally. They now have over 260 retail stores worldwide. Thei

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main focus is providing customers with affordable household products that are well-designed and functional.

KEA's operations management revolves around their motto "Affordable Solutions for Better Living". They efficiently utilize their resources in producing services and products economically to achieve profits. Close collaboration with suppliers plays a crucial role in monitoring various aspects of the business from production to completion of end products.

The success of KEA can be attributed to its mission and business values. The founder Angina Kampala implemented the slogan "Creating a better life for many", which has become integral to KEA's operations and contributed significantly to their success.KEA's goal is to offer customers affordable and high-quality home furniture and furnishings that are well-designed, durable, and competitively priced. This makes their products accessible to a large customer base (KEA 2009). According to KEA Group's fiscal year figures from September 1, 2008 to August 31, 2009, sales increased by 1.4%, reaching a total of 21.5 billion euros. KEA Group has gained recognition for its business model throughout its network of 300 stores in 35 countries worldwide due to its production model focused on clear objectives and the unique selling point of providing low-priced furniture with high quality and innovative features.

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