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management process.
The 2 major aspects of strategic management process are
strategy formulation and strategy implementation.
STRATEGY FORMULATION is the process of creating a
strategy; it involves taking information from analysis or
organizations environment and existing stategies as well as
identifying resources the business has to formulate a new plan
that can help to attain orgs goals and objectives.
STRATEGY IMPLEMENTATION is the process of allocating
resouces and putting the stategies into action. The stategies
must be acted on to achieve the desired result. If the business
strategy implemented doesnt achieve the required results, a
new stategy must be formulated.
2) Explain the strengths and weaknesses of IKEA and
their influence on its business growth.
IKEA uses SWOT analysis, a strategic planning tool to help
reach its objective. In order to improve its performance, IKEA
has to assess its internal aspects. Strengths and weaknesses
are the internal factors where strength is positive factor and
weakness is negative factor of the business. This means that
they are within the control of the business. They may refer to
aspects of marketing, finance, manufacturing or organisation.
A business can create opportunities and counter threats by
making the most out of its strengths and addressing its
weaknesses.
IKEAs strengths include a having a strong global brand.
This could help in their business growth by attracting key
consumer groups. It also promises the same quality and range
worldwide which help increase consumer confidence.
Having a strong concept allows IKEA to offer a wide range of
well designed, fuctional products at low prices. On top of that,
adopting a democratic design by reaching an ideal blance
between function, quality, design and price contributes to
IKEAs brand image in tandem with their vision to create a
better everyday life for many people.
The aforementioned strengths contribute to IKEA in being able
to attract and retain their customers.
IKEA uses renewable materials that includes as much
recycleable materials as possible. With these environmentally