Organisational structuresStrategic planning is a type of organisational planning used by companies to structure their business objectives.
This plan enables the company to set priorities for what they want to achieve in the future. The company will set a overall goal which employees and stakeholders will be working towards. The plan will adapted to the current external environment to promote further success of the company. A successful strategic plan will cover the specific actions the company will need to take in order to reach their goal. The strategic planning allows the company to track their progress and compare it to the progress required to achieve the goal.
This type of planning is a good visual aid to show the employees and stakeholders what the business is aiming for in the future, which will give the employees and stakeholders objectives to achieve. IKEAIKEA will have a strategic plan for the company, they will use this type of planning to meet the aims and objectives set by the business. IKEA set out a strategic plan to lower their prices in order to focus on long-term growth. The type of products IKEA makes are designed to be used immediately and are easy to dispose of once the consumer no longer wants the furniture. This attracts a large part of the population as it gets rid of the negatives related to furniture purchasing. The company’s success is linked to the type of products it sells, as furniture is an item which will last for years. The consumers saw this as a good investment opportunity as the products were reasonability priced and would last for a while.
Investors became interested in the business as they saw a gap in the furniture market for a company with low prices, good quality products and easily assemble items. IKEA are hitting the correct demographic and specifically appeals to the younger population as the prices are perfect for the living wages of an younger individual. The aesthetics of the products are suited for the younger consumers with the simple and fresh look of the furniture. The pricing of the products is perfect as it is cheaper than competitors such as Harvey’s furniture, Furniture village, dwell. Yet it is does not have a cheap look, neither bad quality materials. At IKEA the customer’s feel they are getting value for money products. The IKEA store have a unique layout with elaborate showrooms and creatively designed product layout.
The stores also have a large cafeteria with a variety of foods the store provides unique Swedish food such as the Swedish meatballs which have an incredible reputation. The Swedish food also appeals to the customers as the association sweden has with freshness and health the food makes the customers feel as if they are eating nutritious food. The visions and aims a business has will create a certain image and reputation which could help towards achieving an overall goal. IKEA will have to pinpoint their overall goal for the business and they will do this by figuring out how to measure their success. The goal could be related to revenue, popularity of the business or the amount of stores opened around the world. Different companies will have different focuses for their success. Although IKEA has smaller targets which they work towards, their main goal has always been to tailor their product to fit the needs of their consumers.