Business Assignment : Ikea Company Essay

722 Words Nov 12th, 2014 3 Pages
Business Assignment: IKEA by Matt Jennings

Background:
IKEA is a private global corporation that specialises in home products including flat pack furniture, kitchen and bathroom items, and accessories. The first full IKEA store opened in Almhult in 1958. As of 2011, IKEA owned and operated 332 stores in 38 nations.

Features of operations management:
The whole purpose of operations management is to ‘design, produce and deliver products and services that satisfy market requirements’ 1. An operations manager from IKEA would be involved in:
• Design of stores to ensure effective flow of customers
• Designing products that attract customers but are still able to be flat-packed efficiently
• Ensuring that all staff contribute to the company’s success
• Choosing a appropriate size for stores according to their locations
• Arranging the delivery of products to stores
• Dealing with the ever changing levels in demand
• Ensuring that storage areas remain clean and safe
• Avoiding running out of products for sale
• Monitoring and improving on the quality of customer service
• Continually evaluating and improving operations practice.
IKEA has a huge network of suppliers worldwide, 1,300 direct suppliers and about 10,000 sub-suppliers; they also have 26 Distribution Centres.
Relationship between Operations, Marketing and Finance
Operations, marketing and finance are all interdependent. Operations incorporate the manufacturing of products, provision of services and value adding…

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