Company overview of IKEA

Company overview of IKEA IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the worlds largest furniture retailer, recognised for its Scandinavian style. The majority of IKEAs furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEAs website. There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin too its first in Ireland. IKEA stores include restaurants and cafà ©s serving typical Swedish food. They also have small food shops selling Swedish groceries, everything from the famous meatballs to jam. Stores are located worldwide. In August 2008 the IKEA group had 253 stores in 24 countries, with a further 32 stores owned and run by franchisees. It welcomed a total of 565 million visitors to the stores during the year and a further 450 million visits were made to the IKEA website. IKEA sales reached 21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales countries are Germany, USA, France, UK and Sweden. In 2008 IKEA opened 21 new stores in 11 countries and expects to open around 20 more in 2009 as part of its strategy for growth. IKEA Vision and Business idea The IKEA vision is to create a better everyday life for the many people puts this concern at the heart of the business. Our business idea supports this vision by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Aims and objectives SWOT (Strengths, Weaknesses, Opportunities, Threats) Strengths -Flat-pack technology -Numerous global suppliers -Focus on low price with meaning -Extra in-store perks: restraunts, shopping carts, pencils, etc. -Unique store environment -Modern design pieces as well as traditional pieces Weaknesses -Not doing appropriate market researach when branching into a new cultures market-such as when IKEA came to America. -Ratio of sales representitives to consumers IKEAs self-service ethos, Americans are not used to this type of service. Opportunites -Saving money on labor by establishing supplier relationships with developing countries -Movement into other countries that do not have this type of retailer -Capitalize on good design with reasonable pricing -Capatalize on the unique and appealing shopping experience Threats -Lower prices of general retailers like Target and Wal-Mart that have the ability to regain losses on other merchandise -Finiding ways to appeal to a borader public-Scandinavian design and style is a niche not specifically suited to everyones tastes. Therefore, IKEA must figure out how to do this before someone else does. PESTLE ANALYSIS External Environmental Factors IKEA faces a variety of external environmental factors when conducting business in a competitive, global furniture market. These different factors, provides an explanation of what faces IKEA (The Broad Environment) Research shows in the broad environment, an individual firm can do little to directly influence these factors. In this study, IKEA is broken down by social, economical, technological and political/legal factors to dissect the broad environment. Socioculturally it was hard for IKEA to integrate itself in the American market. The furniture market in the United States contained a wide dichotomy between high-end and low-end design. Within this fragmented market, the top 10 furniture retailers were only responsible for 14.2% of the entire market share. The general discount stores, i.e. Wal-Mart, Target, Office Depot bring up the low-end market. These stores usually marketed their furniture on the basis of cut-rate pricing making margins low in for these channels. There were also smaller shops offering cheap furniture to price-conscious customers such as college students. However, these stores reflected their low price focus with dreary, dingy environments containing haphazard displays and poor, inconsistently managed inventories. Conversely, the high-end specialty markets offered luxurious store environments with clean, plush displays, conjuring up affluence, prosperity and comfort. These specialty retailers include Ethan Allen, Thomasville, and Jordans Furniture. Many of these retailers offered easy payment credit options lessening the debate when considering big-ticket items. Also, these stores came complete with high-touch sales consultants who assisted with measurements and product selection. These retailers offered interior design services for consumers whom were more interested in complete home makeovers. In addition, they boasted of huge inventories often containing many sub-styles within each specific style. Complete with delivery services, retailers could guarantee that consumers new purchases would be delivered and set up in their homes in a matter of weeks without them even having to lift a finger. Lastly, these specialty retailers focused on the quality of the furniture touting that their quality pieces will last a lifetime hence the justification of steep prices-a customer would not or should not need to replace the piece again within their lifetime. The other large part of IKEAs bumpy entry to American culture was the lack of market research. Many Americans didnt like IKEA products because the beds and kitchen cabinets did not fit American sized sheets or appliances, sofas were too hard for American comfort, the dimensions were in centimeters, and the kitchenware was too small for American serving preferences. A manger of the first store in Philadelphia (1985) recalled people drinking out of the vases instead of the serving glasses. Economically, IKEA is low cost. This is a big piece of breaking into the American market. IKEA had to focus and advertising campaign directed specifically to thwart Americans unwillingness to part with their furniture. Part of this angle is the low cost. It is only furniture, change it. By being willing to listen to consumer feedback and changing the way Americans looked at furniture, during the mid-1990s IKEAs profit share in American markets improved. Technologically, IKEAs Flat Pack is unlike any other furniture retailers shipping method-IKEA claims that they do not want to pay to ship air. This is precisely why they can be self-service and do not have to employ as many people as someone would think. These flat packs make it possible for people to lug their packages home without having to wait weeks for delivery. IKEA provides pencils, measuring tapes, store guides, catalogs, shopping carts, bags, and strollers to assist with the shopping experience. Customers are expected to transport their own purchases as well as assemble them on their own. The method in which IKEAs stores are lined up are ingenious. A customer will shop displays and then take their selections (jotting their item numbers) down to the warehouse to pick up their flat packed items before proceeding to check out. Utilizing Porters Five-Forces Model of Industry Competition, IKEA can be evaluated in the following way: 1. Customers Americans-the primary consumer base for IKEAs debut in the American Market. The most likely IKEA shopper are those sort of people who travel abroad, like taking risks, enjoy fine food and wine, have a frequent flier plan, and are early adopters of trendy consumer technologies such as Discmans, laptops, and cell phones (incidentally, IKEAs most atypical customer would be they type of person who collects guns). 2. Suppliers IKEA relies heavily on global suppliers. Once IKEA sets its base price for an item, they then seek to balance cost-effective labor with the companys quality product standards. It does so by working with 1,800 suppliers in over 50 countries. In many instances, IKEA circulates its idea within supplier rings and encourages them to compete for the production package. Sometimes to meet the base price, IKEA will have one design with pieces from several different suppliers. 3. Existing Competitors Traditional Furniture stores are abundant in America. There are none exactly like IKEA in the United States. Therefore IKEA has an advantage over those traditional stores that have high priced furniture. If that is not what the consumer is looking for, then they can go to IKEA for quality, less expensive furniture with a modern design edge. 4. Potential Competitors/Entry Barriers Since IKEA is such a unique, original idea/store it would be very hard to duplicate the totality of IKEAs culture. A store could probably duplicate one or two of the things which compose IKEAs atmosphere but they would fail in other aspects. Like, a store could try and copy the Scandinavian design niche but it would be hard and unauthentic (like what IKEA embodies) without the Scandinavian heritage. 5. Indirect Competitors/Substitutes Wal-mart, Target, Office Depot and other low-cost suppliers are indirect competitors in the fact they do offer low-priced furniture that consumers assemble themselves. However, these indirect substitutes differ in the fact that these are general retailers instead of where IKEA is a specific retailer of home goods. Target, for instance, retails apparel, accessories, home goods, groceries, office products and cleaning supplies. IKEA Strategy and Strategic options Company vision IKEAs vision has from the start been To create a better everyday life for the majority of people. IKEAs business concept originates in the decision to meet a need that no other company appeared concerned with and led it to develop a niche market: manufacturing beautiful, inexpensive and durable furniture for the majority of people.27 I. Kamprad states that IKEA should stand on the side of the majority of people, which involves taking on more responsibility than might at first seem to be the case.28 A recent example is the companys exceptionally costly move into the Russian market, but considered necessary as affordable furniture is a pressing need for the Russian population.29 The democratic design also involves representing the interests of ordinary people and getting rid of designs, which are difficult and expensive to produce, even if it is easy to sell.30 The concept was formalized in 1976 in Ingvar Kamprads thesis Testament of a Furniture Dealer, which became an important way to spread the IKEA philosophy.31 The fundamental goal was and is to provide affordable furniture for the people and cost cutting is key to achieving this. Cost-consciousness is a strong part of the business idea and the waste of resources is considered a mortal sin at IKEA32. By ensuring that ordinary people are able to afford to furnish their homes beautifully, many associate IKEA with a company that stands on the side of the little person and this is a positive image for a company to have. In addition to this, I. Kamprad had another dream: the dream of good capitalism which is the idea that the good in a profit-making business can be combined with a lasting social vision. This implies the goal of developing and achieving a better future for IKEAs customers as well as people working for IKEA believing that by working for IKEA, they are working for a better society and thereby contributing to a better world.33

Affordable Care ACT

The patient protection and Affordable Care Act of 2010 (ACA) is expected to have a major impact on the financing of healthcare, principally by expanding insurance coverage to approximately 32 million of the current 50. 7 million uninsured by 2014. If the goal is reached, 95% of all Americans will have health insurance (Kovner& Knickman, 2011). The Affordable Care Act will expand coverage in two key ways: expanding Medicaid eligibility and through a blend of subsidies and mandates that encourage the working class to purchase affordable insurance coverage in the private market.Medicaid eligibility rates will be expanded so that most people who earn less 133% of the federal poverty level will be covered. Furthermore, the Affordable Care Act is one of the biggest changes to our Health care system since the introduction of Medicaid and Medicare. However, there still will be 29 million Americans who will still lack healthcare insurance even after the Affordable Care Act is fully instituted (Andrews,Darnell,Mcbride& Gerlert,2013) fundamental goals of the ACA are to decrease the cost of healthcare, increase quality of healthcare, services, and make healthcare assessable to all Americans, particularly the uninsured.One of the largest changes to healthcare through ACA is that everyone must have insurance this is the largest positive factor of the ACA (Hayes, 2011) The ACA is meant to target insurance policies that have limitations based on preexisting conditions the goal is to eliminate this kind of policy and improve access to quality health care(Hayes,2011). The fundamental goal of the ACA is that by making insurance available to millions more Americans that this will hopefully decrease healthcare cost by allowing more people to receive preventative care.In the long run, it is generally cheaper to prevent healthcare problems than it is to treat active diseases (Cleary, Brenda, and Peggy Wilmoth, 2011). Beginning in 2014, most individuals will be required to maintain mi nimum essential coverage or will be required to pay a penalty of 95 dollars the first year 350 dollars in 2015 and 750 dollars in 2016 ,and indexed thereafter for those under 18 years of age the penalty will be one half the amount for adults(Robeznieks& Andis,2011).For individuals who make over 10, 0000 dollars a year the cost of health care cannot exceed 8% of your yearly income (Hayes, 2011). The drafters of the ACA believed that increasing insurance coverage would not only improve quality of life, but also help reduce medical bankruptcies currently the leading cause of bankruptcy in America. Additionally, ACA will establish state based health insurance exchanges. The exchanges are regulated online market places administered by either the federal or state governments, where individuals and small business can purchase private insurance plans.Individuals with incomes between 100% and 400% of the federal poverty level who purchase insurance plans via the exchange will be eligible to receive federal subsidies to help m pay premium costs (Robeznieks& Andis, 2011). The ACA is a step forward in decreasing health disparities in our country by decreasing the influx of chronic diseases on patients and thereby decreasing the amount of preventable diseases that occur in this country. However, opponents of the law want to argue that the individual mandate is unconstitutional.Ethically for individuals and organizations this is the right thing to do by providing the less fortunate with insurance coverage (Hayes, 2011) . The ACA is a golden opportunity for our country to decrease a lot of preventable diseases from occurring by decreasing preventable diseases hopefully it will bring down the cost of healthcare for every American. Conclusion In conclusion, the ACA is not a cure for all that ails our health care system it is going to take several years to realize the full implications of the law, but is a step forward in improving Healthcare in our country.Moreover, there will remain some injustices and health disparities for example, there will 29 million Americans will still be without insurance even after the ACA is instituted among those who will lack insurance coverage are: Illegal immigrants an estimated 23 million will be ineligible for insurance subsides and Medicaid, citizens not enrolled in Medicaid despite being eligible Citizens who whose insurance would cost more than the 8% house hold income are exempt from paying ,and Citizens not otherwise covered and opting to pay the annual penalty instead of purchasing insurance.Under the ACA more North Carolinas’ will be eligible for Health care prior to the ACA only children, the elderly and disabled qualified for Medicaid. I n January of 2014, all North Carolinas’ whose income is below 133% of the Federal poverty level will be eligible for Medicaid this will drastically improve access for North Carolinas’ working class single parent homes and those previously uninsured.

Changes (John Updike’s “A&P”) Essay

Breaking away from the traditional is a struggle that contains several sacrifices and consequences. In John Updike’s â€Å"A&P,† Sammy is a young teenager who transforms his wishes into reality. At first glance, he seems like a normal teenage boy, but instead he is an observational character who is trying to find a way to stand up for himself. Throughout the story, he undergoes changes to reveal a different outlook for his future. Sammy demonstrates that he is a dynamic character through his views on the regular customers, his reaction to the girls, and in his decision to quit his job. First, the way Sammy sees the regular customers reveals that he is a dynamic character. In the beginning, Sammy is at the cash register checking out a â€Å"witch about fifty with rouge on her cheekbones and no eyebrows† (Updike 18). The reader can tell Sammy has strong perspective on the customers that come in to the store. He sees them as disgusting, evil, lifeless and dead by the descriptions he gives the audience. As the story continues, Sammy looks down the lane and notices â€Å"the sheep pushing their carts down the aisle— [while] the girls were walking against the usual traffic† (20). The girls’ unorthodox direction represents Sammy noticing that the customers are followers– not wanting to break the cycle like the girls. From the description Sammy gives, the reader notices that he does not want to be like the customers, following the same rules, guidelines, and policies. By the end of the story, the girls are stopped by Lengel, the manager, when they reach the check-out lanes. The customers that were showing up, â€Å"like sheep, seeing a scene,† crowded around Stokesie’s lane to avoid any confrontation that was happening out of the usual (22). Sammy’s way of describing what the regular customers would do in a tough situation makes him wonder if this is the type of life he wants. The descriptions and views Sammy displays about the customers make him think twice about his surroundings. Next, Sammy’s reaction towards the girls reveals that he is a dynamic character. At the check-out, he notices that three girls walk in the store â€Å"in nothing but bathing suits† (18). As the girls head for the aisle, Sammy observes that they are not wearing shoes (19). He begins to check them out and discovers that Queenie has on a bathing suit with the straps down by her arms exposing her â€Å"clean bare†¦chest† (19). As they continue walking, he details how the girls look, from their â€Å"chubby berry-faces† to how their hair was not â€Å"fizzed right† (19). Sammy makes these vivid observations about the girls to show the reader how they stand out from the normal. The girls represent Sammy’s thoughts and views on how he wishes to escape from the ordinary. By the end of the story, Lengel comes up to the girls and confronts them about the way they are dressed. Queenie starts to blush and feel powerless when she realizes where her place is (22). At that point, Sammy stands up for the girls and quits. The reader can tell that Sammy is going out of his way to defend the girls and for what he believes in. Throughout the story, he wishes to escape and standing up to Lengel was a way. Sammy’s descriptions and bravery reveal that he is changing into someone different than the normal. Most importantly, Sammy demonstrates that he is a dynamic character when he decides to quit his job. By the end of the story, Sammy realizes that he is tired of being surrounded by what is normal. When Lengel asks Sammy if he has rung up the purchase in his hands, he starts to think about the process it takes for him to check-out a person in the line. â€Å"It’s more complicated than you think, and after you do it often enough, it begins to make a little song† he thinks to himself (22). By the detailed description given by Sammy, the reader can tell that he is tired, bored, and trying to find ways to make the ordinary fun. The first breakthrough Sammy makes is when he says, â€Å"I quit,† to Lengel after he dealt with the girls’ attire (22). Sammy’s message is clear and direct towards his manager, making the reader conclude he has finally stood up for himself. He starts to doubt his decision to quit, but sticks through when he sees the regular customers. At the climax of the story, Sammy heads towards his counter, and, â€Å"fold[s] the apron, ‘Sammy’ stitched in red on the pocket, and put[s] it on the counter† (23). Taking off the apron and leaving it behind shows the reader that Sammy has finally escaped from the normal and able to live a life that he has wanted. Even though Sammy decided to take a leap towards faith, he knows inside that the road ahead is going to be tough. Getting away from the normal can be complicated. The person will have to change certain situations and make them for their best interest. For Sammy, his views on the regular customers, his reaction to the girls, and in his decision to quit his job demonstrate that he is a dynamic character. With the help of the girls, he was able to stand up for himself and make a better future for his life.

Food Production Of Genetically Modified Food - 2458 Words

Ingredients Matters: From the Farm to the Table Mass production of genetically modified food has led to the deterioration of nutritional substance in the yields of produce and livestock, bringing a negative environmental consequence, impacting the farms ecosystem and the farmers sustainability. An uninformed public suffers the consequences of false advertising and a lack of labeling laws to make healthy decisions when being unaware of the ingredients and preparation of their food. Organic certified farms promote a standard of abstaining from synthetic made pesticides, fertilizers containing harmful chemicals leaving dangerous residue, and inadequate diet and care of livestock. This is achieved by creating natural renewable resources†¦show more content†¦Conventional farming techniques practice methods involving use of: fertilizers, pesticides, herbicides, antibiotics, and growth hormones, for an overall beneficiary of controlling pests and disease on the crops, a higher output of product, and a longer life span without spoiling. This increased life span, thanks to the chemically produced armor, can now travel from the farm to the store and have a high shelf life until consumers make their purchase. The current labeling laws held in the United States have no mandatory regulations for companies to abide by when allowing their consumers to be informed if the contents within the products ingredients contain genetically modified organisms (GMO). This additive is made through biogenetically engineering specific changes to the organisms DNA. â€Å"Otherwise known as â€Å"splicing†, this creates a species of plant, genes, bacteria, and even animals which do not naturally occur in nature, or stick to the traditional cross breading techniques† (NONGMOPROJECT) A major tool in preserving the yield and quality of a conventional farmed crop is pesticides. A pesticide is a type of biocide, which is a chemical substance or microorganism controlling the effect on a harmful organism (epa.gov) What pe sticides are used for is attracting, seducing, and destroying any pests that may be harmful to the crop. As this does benefit the pest