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(Solved): Read the following case study based on IKEA and answer the questions that follow. Not all the answe ...
Read the following case study based on IKEA and answer the questions that follow. Not all the answers can be found in the case study, you may be required to conduct additional research. Why IKEA's Operations Model Is So Successful Operations management is an essential part of the Swedish furniture company IKEA's success. Its management systems have enabled the company to offer more than 9,500 products at competitive prices as it has grown over nearly eight decades. IKEA's reputation has rested on its efficient and effective management of: Product and process design, Inventory, Quality assurance, Supply chain networks and Back-end operations. Q The Independent Institute of Education (Pty) Ltd 2023 Page 4 of 8
These management systems have made the company the highest-valued retail furniture brand that has been exemplary in management and business textbooks worldwide. As an innovative leader of successful management practices, IKEA represents what effective operations management can do for a business or organization. IKEA's Operational Model Since its inception in Sweden in 1943, IKEA has offered affordable, high-quality furniture to the masses. Today, IKEA is the largest and most valuable furniture retail chain globally, with over 400 locations operating in 52 countries. From the comfortable showrooms navigating customers through a labyrinth of product displays to the innovative thinking that created flat packing and ready-to-assemble furniture, IKEA's success relies on efficient and effective operational management solutions. Through tight control over operational efficiencies in the design, production, supply chain, and distribution processes, IKEA has been able to keep consumer and manufacturing costs low while growing the company on a world stage. IKEA perfectly demonstrates the power and significance of operational management systems to elevate a business and optimize its workflows. Source: Faircloth, T. 2021. Why IKEA's Operations Model Is So Successful, CHEKhub, 16 September 2021. [Online]. Available at: https://chekhub.com/why-ikeas-operations-model-is-so-successful/ [Accessed 17 February 2022].
Q The Independent Institute of Education (Pty) Ltd 2023 Page Q.2.4 Illustrate a transformational model for the construction of a wooden furniture table at one of IKEA's stores. - When identifying inputs, discussing the transformation process or identifying outputs you may take liberties in line with the context of the scenario
Expert Answer
Q.2.1 Provide a brief description of the organization IKEA.IKEA is a Swedish multinational furniture and home goods retailer. It was founded in 1943 by Ingvar Kamprad and is currently headquartered in Delft, Netherlands. IKEA is known for its affordable and stylish furniture, household products, and home accessories. The company follows a self-service concept, where customers can choose their products from the showroom and collect them from the warehouse themselves.IKEA designs its products with a focus on functionality, simplicity, and cost-efficiency. It has pioneered the concept of flat-pack furniture, which allows for easy transportation and assembly by customers. IKEA operates on a global scale, with stores in over 52 countries, and its products are available both in physical stores and online.The company's vision is to create a better everyday life for many people by offering well-designed, functional, and affordable products. IKEA's success can be attributed to its strong operational management practices, efficient supply chain, effective cost control, and customer-centric approach.