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Ikea Case Study

Essay by   •  April 11, 2018  •  Case Study  •  1,295 Words (6 Pages)  •  272 Views

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program charter

  1. There are many furniture store around the world, which includes the IKEA in the Swdish. As of the winter of 2004, IKEA has 202 major outlets in 32 countries around the world. Most of the stores are located in Europe, while others are located in the United States, Canada, Asia, and Australia. IKEA is the most famous for the modern society and have a special design among the all the furniture shops. Since IKEA began in 1943 with a not good stationery mail order business, it has grown into a global “gigantic” company with 180 chain stores in 42 countries and employing more than 70,000 employees in less than 60 years. In 2001, IKEA achieved a net income of 11 billion euros and a net profit of more than 1.1 billion euros. It has become the world's largest home furnishing retailer, and it has also won 44th place among the TOP 100 global most valuable brands released by Interbrand
  2. The basic purpose of any company is profitability. If an enterprise’s product can generate a price greater than the cost of producing the product, it must be profitable. In order to make a profit, the company must produce products that the consumer considers valuable. Therefore, we can know that companies are engaged in value creation. Consumers are prepared to measure the value of vinegar for a product as a measure of consumer recognition of the product

Businesses have two ways to increase their profits:

Firstly, increase the value of the goods so that consumers will buy more for it.

Secondly, to reduce the cost of value creation, when the company improves product quality, provides services to consumers, or Satisfying consumer specific needs for a product so that consumers will pay more for it adds value to the product. In other words, companies should provide products that are more distinctive than their competitors. When companies find a more efficient approach to value creation activities, they reduce the cost of value creation. Therefore, there are two basic strategies for improving the profitability of enterprises, namely, differentiation strategies and low-cost strategies

According to the PMBOK guidelines, the main contents of the project charter should be as follows:

∙        General project descriptions and product descriptions.

∙        A general project description, including the overall scope and overall quality requirements of the project. Measurable project goals and related success criteria.

•        The project's major risks, for example, can list the project's major risk categories.

•        Overall milestone schedule.

•        The overall budget, which can be a budgetary interval, for example, between 1 million and 1.3 million yuan. Appointed project managers and their responsibilities and authorities.

•        The name and authority of the sponsor or other person who approved the project charter.

3.There are many problems still having in IKEA. Due to the lack of diversity in the products, it is unable to meet the needs of local consumers. There are two stresses in IKEA, which are the pressure of cost and changing area

In some areas, people have different cultural differences and living habits.For example, North American culture, including consumer habits, consumer psychology, and market structure are all very different from those in Europe.

even some big companies will face many difficulties. We can take the case analysis of China's IKEA to solve some problems.

4.Portfolio management is a various of  the management of assets with the theory of portfolio in order to realize the purpose of investing in diversifying risks and improving development

5. managers generally follow the principles:

Firstly, when people understand the good conditions of risk, they can know the highest of portfolio management.

Secondly, when people understand the perfect the conditions of income, the risk of portfolio is kept to a minimum.

6.It describes the purpose of portfolio management. In many customers’ need and some requirements, the IKEA will select many kinds of shops and products, and other kinds of portfolio management should be pay attention to it, and then the manager should manage many difference  portfolios to achieve the good and perfect development of IKEA .  The customers’ opinion and the demand need is have the risk to know how to deal with the problems, and many portfolio managers have some tasks for IKEA, which can get the highest data and return the perfect the numbers about the risk condition for IKEA.

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