Operation Management & Ikea Essay

6166 Words Oct 27th, 2009 25 Pages

The following assignment is based on operations managements within IKAE. The aim of this unit is to analyse the operations functions within the organisation by understanding strategic operations management, the operations process and planning and control.

“Operations management is an area of business that is concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient and effective. It is also the management of resources, the distribution of goods and services to customers and the analysis of queue systems”

About IKEA:
IKEA is a privately-owned company founded in Sweden by Ingvar Kamprad.
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Due to its larger selling space, IKEA offers about more products and services than Furniture to go UK. They have included kitchen, bathroom and home improvement items such as bedding covers, curtains, etc whereas Furniture to go UK only sells furniture such as bed, cupboard and sofas. Unlike Furniture to go UK and most other stores, IKEA has found an effective way to use space efficiently by selling flat packs; most of their products need to be assembled by the consumers which may facilitate the transport of goods. On the other hand Furniture to go UK sells already assembled items but offers free delivery services.
Another difference is that IKEA has a catalogue and a website on which it offers more than 12,000 products. Their catalogue is available at the point of entrance for customers to see a brief representation of IKEA’s products.

Both stores need large display areas for their products; because of the high price of land in the city centres both companies have chosen to be based on the outskirts of town. Strategic location is also used as an advantage for their distribution operations as the circulation of goods

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