Operation Management--Ikea - 1925 Words

IKEA History and Company Information IKEA retailing with its Sweedish roots, is based on a franchise system. Inter Ikea system BV is located in Delft, the Netherland being the owner and franchiser of the concept IKEA. (www.ikea.com) The company aims to sell furnitures for 10 to 30 percent less then other stores ( source - stevension ). Every Ikea employee still follows the vision quotes of Ingvar Kampard to create a better everyday life for many people. During 2010 global sales as reported were 23.1 billion. It took long time and careful planning for Ikea to offer sophisticated products to customers at reasonable price. According to slack operation (2010) management deal how company manage its operation production and sales being two†¦show more content†¦Because of the attractive floor layout, large space and systematic furniture display customers spend more time in IKEA stores and those time is being added value by their purchase and make those a quality time. After entering any IKEA store customers feel like entering their house and the layout showcased in the store creates an imaginative intention designing idea with in the customers. Like all other organizations porter 1980 four v s - volume, variety, variation in demand and visibility affects the organisation operation lies behind the operation strategies of it. The Volume Dimension The volume of the Ikea company is an important factors that measures its performance. They products furniture in high volume on the fiscal year 2009. Ikea hard about 123,000 employees and its total revenue amounted to about 22,713 million pound. In August 2009 the firm operated 301 stores in different countries. The above data reveals the dimension of the company in terms of size and manufacturing.The furniture is produced in a very big volume and sold in the warehouse. The company has economies of scale due to reasonable price of theShow MoreRelatedOperation Management on Ikea1851 Words   |  8 Pagesobjective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strengt h and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goodsRead MoreOperation Management Ikea6167 Words   |  25 Pagesfollowing assignment is based on operations managements within IKAE. 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