sustainability at ikea group case study

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Sustainability at IKEA Group

• Format: Print
• | Language: English
• | Pages: 21

About The Authors

V. Kasturi Rangan

Michael W. Toffel

Related work.

• August 2015
• Faculty Research

Sustainability at IKEA Group: Video Supplement

• September 2015
• Sustainability at IKEA Group: Video Supplement  By: V. Kasturi Rangan and Michael W. Toffel
• Sustainability at IKEA Group  By: Michael W. Toffel
• Sustainability at IKEA Group  By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain and Jerome Lenhardt

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Sustainability at IKEA Group

By: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had…

• Length: 21 page(s)
• Publication Date: Sep 2, 2014
• Discipline: Strategy
• Product #: 515033-PDF-ENG

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By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

This case is accompanied by a Video Short that can be shown in class or included in a digital coursepack. Instructors should consider the timing of making the video available to students, as it may reveal key case details.

Sep 2, 2014 (Revised: Nov 20, 2017)

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IKEA: leading the way in sustainability

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Reducing carbon emissions

IKEA recognises the impact its operations have on the environment and is taking action to minimise that impact. For example, the company has made significant investments in renewable energy, such as wind and solar power, and is actively working to transition its energy sources away from fossil fuels. IKEA has also set ambitious targets for reducing its carbon emissions, such as reducing energy consumption in its stores and distribution centres by 80% by 2030.

Developing sustainable products

IKEA is further committed to developing more sustainable products that will positively impact the environment. The company is investing in research and development to create products that use less energy and resources and have a longer lifespan. For example, IKEA developed furniture made from renewable materials, such as bamboo, and is working to improve the recyclability of its products.

Inspiring action

IKEA's commitment to sustainability is not just limited to its operations. The company also works to inspire others to take action and make a difference. Through its commitment to becoming climate positive by 2030, IKEA is setting a bold example for other companies to follow. Additionally, it is working to educate its customers about the importance of sustainability and its role in creating a more sustainable world.

The future is bright

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Sustainability at IKEA Group – Case Solution

The "Sustainability at IKEA Group" case study assesses the People and Planet Positive sustainability plan of the company. It discusses the program concerning its being aligned with IKEA's business model.

​V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt Harvard Business Review ( 515033-PDF-ENG ) September 02, 2014

Case questions answered:

Case study questions answered in the first solution:

• How would you assess IKEA Group’s People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan’s targets too limited, appropriate, or too ambitious?
• How do you feel about the progress IKEA Group has made in implementing the plan?
• How does IKEA’s sustainability strategy align with its business model? What are the overlaps? What are the conflicts?
• Which option(s) should IKEA Group pursue to address IKEA’s Wood Supply Chain sustainability? Which has the highest leverage for IKEA?

Case study question answered in the second solution:

• What strategy would you recommend for IKEA for its wood sustainability without compromising its growth target for 2020?

Not the questions you were looking for? Submit your own questions & get answers .

Sustainability at IKEA Group Case Answers

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1. How would you assess IKEA Group’s People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan’s targets too limited, appropriate, or too ambitious?

The strategy for sustainability at IKEA Group, ‘people and planet positive,’ aims at meeting the needs and interests of many people and society while protecting the environment. The strategy is intended to also improve the quality of life of people and communities within the planet’s limits.

The company is committed to the right working conditions, uses resources efficiently, and recycles waste into resources. It also promotes renewable energy, responsible stewardship of forests, water, and farmlands, and a better society that respects human rights across its integrated value chain.

This plan is a significant step towards transforming business and innovations, creating new business opportunities, and leading the change in society. The idea to make more sustainable products (energy-efficient LED lighting) and provide affordable solutions is likely to benefit the consumers, environment, and society by saving money and time and living an exciting life.

Similarly, the IKEA Group will be able to achieve a competitive advantage through its access to important raw materials, improved relationships with co-workers and customers, development and maintenance of a supplier base, and increased productivity.

The plan’s targets are ambitious because they pertain to all aspects of business and add value. IKEA’s success in its business and becoming people and planet positive depends on its ability to enable change throughout its business, and more critical because they are aimed at creating a positive impact on people and the planet.

Also, the IKEA group has highlighted three key change drivers that will make it possible to achieve the stated targets for sustainability:

• Inspiring many customers to live a more sustainable life at home. This is by taking the lead in developing and promoting products and solutions that help customers reduce waste and save energy.
• Engaging and involving people and communities, suppliers, and co-workers through impactful, relevant, and unique communication.
• Striving for resource energy independence. Sourcing raw materials from more sustainable sources produces a renewable energy source and promotes energy efficiency throughout its value chain.
• Taking the lead in contributing to a better life for people and communities by supporting human rights and preventing child labor.
• By August 2017, develop and implement a transparent and reliable system for the responsible recruitment of workers at first-tier suppliers in critical areas…

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Sustainability at ikea group description.

By 2014, IKEA Group was the largest home furnishing company, with EUR28.5 billion of sales, and planned to reach EUR50 billion by 2020, mainly from emerging markets. At the same time, IKEA Group had adopted in 2012 a new sustainability strategy that focused the company's efforts on its entire value chain from its raw materials sourcing to the lifestyle of its end consumers. The plan especially centered on wood, which represented 60% of IKEA Group's total procurement in volume and constituted a key lever for the company to increase its positive impact on sustainability. IKEA Group Management therefore had to decide how to manage its portfolio of wood sustainability initiatives, especially in the context of the company's aggressive growth plan.

Case Description Sustainability at IKEA Group

Strategic managment tools used in case study analysis of sustainability at ikea group, step 1. problem identification in sustainability at ikea group case study, step 2. external environment analysis - pestel / pest / step analysis of sustainability at ikea group case study, step 3. industry specific / porter five forces analysis of sustainability at ikea group case study, step 4. evaluating alternatives / swot analysis of sustainability at ikea group case study, step 5. porter value chain analysis / vrio / vrin analysis sustainability at ikea group case study, step 6. recommendations sustainability at ikea group case study, step 7. basis of recommendations for sustainability at ikea group case study, quality & on time delivery.

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Case Analysis of Sustainability at IKEA Group

Sustainability at IKEA Group is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Sustainability at IKEA Group is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Sustainability at IKEA Group case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Sustainability at IKEA Group will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Sustainability at IKEA Group case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Sustainability at IKEA Group, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Sustainability at IKEA Group case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Sustainability at IKEA Group case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Sustainability at IKEA Group

Step 1 – Problem Identification of Sustainability at IKEA Group - Harvard Business School Case Study

The first step to solve HBR Sustainability at IKEA Group case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Ikea Sustainability is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Ikea Sustainability, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Sustainability at IKEA Group. The external environment analysis of Sustainability at IKEA Group will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Sustainability at IKEA Group case study. PESTEL analysis of " Sustainability at IKEA Group" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Sustainability at IKEA Group macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Sustainability at IKEA Group

To do comprehensive PESTEL analysis of case study – Sustainability at IKEA Group , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Sustainability at IKEA Group

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Sustainability at IKEA Group ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Ikea Sustainability is operating, firms are required to store customer data within the premises of the country. Ikea Sustainability needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Sustainability at IKEA Group has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Ikea Sustainability in case study Sustainability at IKEA Group" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Ikea Sustainability in case study “ Sustainability at IKEA Group ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Ikea Sustainability in case study “ Sustainability at IKEA Group ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Sustainability at IKEA Group ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Ikea Sustainability can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Sustainability at IKEA Group case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Ikea Sustainability needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Sustainability at IKEA Group

Social factors that impact sustainability at ikea group, technological factors that impact sustainability at ikea group, environmental factors that impact sustainability at ikea group, legal factors that impact sustainability at ikea group, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: sustainability at ikea group case study solution.

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Sustainability at IKEA Group Harvard Case Solution & Analysis

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Sustainability at IKEA Group Case Solution 

IKEA is famous for its cutting-edge designs for appliances, furniture and its indoors layout work, which is often related to the green concept. Besides, the corporation is well-known for its interest in operation details, cost-cutting, and non-stop product development.

Nowadays, IKEA owns and performs in 373 shops in 47 countries. The company manages 1046 suppliers in 52 countries. The main financial principle of the IKEA Group is to grow by using their asset, and the company wants to double the sales to 50 billion euros by 2020 worldwide and requires an increase of  10% in its sales revenue on an annual basis.(Adam Hudson, 2017).

Problem statement

The issue lies in the supply chain sustainability because it contradicts to the growth strategy of the IKEA group, because the company’s recent goal or strategy is to minimize the transportation costs by procuring wood as well as selling wood products near consumer markets. But, on the other hand; the growth strategy of IKEA’s group targets the emerging markets, where it faces sustainability issues due to the lack of well-developed supply chains. AsIKEA’s current strategy is to maximize its sales at the minimum cost by 2020;its aim of "low cost" is only applicable to the upstream supply chain. The company won’t sell the product at low prices and it also aims to keep the product differentiation intact. It has planned on having an expansion in the emerging markets like Japan, China, and India;so there is an issue of alignment.(Analysis of Sustainability at IKEA, 2020)

IKEA launched the strategy of “People and Planet Positive”for sustainability.Its supply chain revolution is designed to support the clients' green lifestyles. For the highest echelon; it is the company's resources and power independence. As a result, IKEA considers owning more forests, pushing for higher procurement standards and utilizing more particleboard and reclaimed wood. IKEA also has solar panels installed in its stores. IKEA has committed to provide its customers with a better lifestyle. (A comparative study of naturalizing sustainability in product development, 2016) LED lighting fixtures are used to beautify the low-intensity areas while also increasing the products’ life-duration. IKEA's ultimate goal is to encourage the practice of community. The adoption of IWAY sourcing is on the rise(IKEA sustainability strategy).

Alternatives

To resolve the conflict; the company needs to align with both of its goals. So there are 3 alternatives for the alignment of sustainability and growth strategy through which IKEA can solve the issue of customer-orientates by implementing local customization. As an example, IKEA, Indian household furniture meeting provider, has taken into account the culture shock when it comes to inhabitants embracing ready-to-assemble furniture. Meanwhile, in-home assembly brings good fortune to an IKEA group of professionals who pay home visits and are familiar with the Indian lifestyles. Currently, IKEA has collaborated with local social enterprises to design handicrafts for its products, ensuring that they remain fashionable.

Another option for alignment is to use multiple techniques for timber procurement. Having forests is a technique of being self-sufficient in raw resources and maintaining a consistent quality while employing extra reclaimed wood and particle board, which can help in keeping the costs down and maximizing the timber usage.

Finally; as IKEA is unwilling to compromise on products’ quality it incorporates an appropriate proportion of wood in its products goods. The sole component does not have any aligns with the enterprise version, which is a massive upfront expenditure required to expand the particleboard and recycled timber manufacturing capability. It contradicts IKEA's profit-maximizing objective. IKEA must invest in it in order to attain long-term viability...............................

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Creating a movement in society around better everyday living

Inspiring and enabling people to live healthier, more sustainable lives

Promoting circular and sustainable consumption

Circular & climate positive.

Becoming circular and climate positive, and regenerating resources while growing the IKEA business.

Transforming into a circular business

Becoming climate positive

Regenerating resources, protecting ecosystems and improving biodiversity

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Creating a positive social impact for everyone across the IKEA value chain.

Providing and supporting decent and meaningful work in the IKEA value chain

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35% more efficient.

The SOLHETTA LED bulb range is more affordable and on average 35% more energy-efficient than previous IKEA LED bulbs.

100% renewable electricity in IKEA factories

During FY21 we reached 100% renewable electricity for all IKEA-operated factories, packaging and distribution units globally.

55.8% renewable materials

Of the materials we sourced in 2021, 55.8% were renewable and 17.3% were recycled.

Less waste with rechargeable batteries

We no longer sell non-rechargeable alkaline batteries and have replaced them with our LADDA rechargeable batteries. This switch can help customers to significantly reduce waste and save money in the long run.

99.5% of the wood used for IKEA products is either Forest Stewardship Council®-certified (FSC®) or recycled.

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Sustainability At Ikea Group Case Study Solution Analysis

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Sustainability At Ikea Group Case Study Solution & Analysis. Get Sustainability At Ikea Group Case Study Analysis & Solution. Contact us directly at buycasesolutions(at)gmail(dot)com if you want to order for Sustainability At Ikea Group Case Solution, Case Analysis, Case Study Solution. V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt Less

Email us for Any Case Solution at: [email protected] Sustainability at IKEA Group Case Study Solution & Analysis Sustainability at IKEA Group Case Study Solution & Analysis. Our tutors are available 24/7 to assist in your academic stuff, Our Professional writers are ready to serve you in services you need. Every Case Study Solution & Analysis is prepared from scratch, top quality, plagiarism free. Authors: V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt Get Case Study Solution and Analysis of Sustainability at IKEA Group in a FAIR PRICE!! Steps for Case Study Solution & Analysis: 1. Introduction of Sustainability at IKEA Group Case Solution The Sustainability at IKEA Group case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Sustainability at IKEA Group case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Sustainability at IKEA Group case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution. The case solution first identifies the central issue to the Sustainability at IKEA Group case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] 2. Problem Identification of Sustainability at IKEA Group Case Solution Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Sustainability at IKEA Group is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these. 3. Analysis of the Sustainability at IKEA Group HBR Case Study The objective of the case should be focused on. This is doing the Sustainability at IKEA Group Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found. In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study. The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. 4. SWOT analysis of Sustainability at IKEA Group An important tool that helps in addressing the central issue of the case and coming up with Sustainability at IKEA Group HBR case solution is the SWOT analysis. The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Sustainability at IKEA Group Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue. Therefore, the SWOT analysis is a helpful tool in coming up with the Sustainability at IKEA Group Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. 5. Porter Five Forces Analysis for Sustainability at IKEA Group Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Sustainability at IKEA Group operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions. • These are the threats that the industry faces due to new entrants. • It includes the threat of substitute products. • It includes the bargaining power of buyers in the industry. • It includes the bargaining power of suppliers in an industry. • Lastly, the overall rivalry or competition within the industry is analysed This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective. 6. PESTEL Analysis of Sustainability at IKEA Group Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases. • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry. • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question. 7. VRIO Analysis of Sustainability at IKEA Group Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] This is an analysis carried out to know about the internal strengths and capabilities of Sustainability at IKEA Group . Under the VRIO analysis, the following steps are carried out: • The internal resources of Sustainability at IKEA Group are listed down. • Each of these resources are assessed in terms of the value it brings to the organization. • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors. • Each resource is assessed whether it could be imitated by competition easily or not. • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. • The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage. 8. Value Chain Analysis of Sustainability at IKEA Group The Value chain analysis of Sustainability at IKEA Group helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows: • The firm’s primary and support activities are listed down. • Identifying the importance of these activities in the cost of the product and the differentiation they produce. • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities. Recognizing value creating activities and enhancing the value that they create allow Sustainability at IKEA Group to increase its competitive advantage. 9. BCG Matrix of Sustainability at IKEA Group The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows: • Identify the relative market share of each strategic business unit. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] • Identify the market growth of each strategic business unit. • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate. • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. The strategies identified from the Sustainability at IKEA Group BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting. 10. Ansoff Matrix of Sustainability at IKEA Group Ansoff Matrix is an important strategic tool to come up with future strategies for Sustainability at IKEA Group in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy. • The organization can develop new products for the existing market. This is known as product development strategy. • The organization can enter new markets with its existing products. This is known as market development strategy. • The organization can enter into new markets with new products. This is known as a diversification strategy. The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take. 11. Marketing Mix of Sustainability at IKEA Group Sustainability at IKEA Group needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis. • Analyse the company’s products and devise strategies to improve the product offering of the company. • Analyse the company’s price points and devise strategies that could be based on competition, value or cost. • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products. 12. Sustainability at IKEA Group Strategy The strategies devised and included in the Sustainability at IKEA Group case memo should have a strategy. A strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy. 13. Competitors analysis of Sustainability at IKEA Group The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Sustainability at IKEA Group looks at the direct and indirect competitors within the industry that it operates in. • This involves a detailed analysis of their actions and how these would affect the future strategies of Sustainability at IKEA Group . • It involves looking at the current market share of the company and its competitors. • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc. • It also should look at the potential opportunities and threats that these competitors pose on the company. 14. Organisation of the Analysis into Sustainability at IKEA Group Case Study Solution Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Sustainability at IKEA Group case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations: • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] issue mentioned in the case and where the company will stand in the future as a result of these. • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Sustainability at IKEA Group Case Study Solution that the business unit should focus on costs. • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved. The case study analysis and solution, and Sustainability at IKEA Group case answers should be written down in the Sustainability at IKEA Group case memo, clearly identifying which part shows what. The Sustainability at IKEA Group case should be in a professional format, presenting points clearly that are well understood by the reader. 15. Alternate solution to the Sustainability at IKEA Group HBR case study It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Sustainability at IKEA Group is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations. 16. Implementation of Sustainability at IKEA Group Case Solution Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

Email us for Any Case Solution at: [email protected] The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process. • A proper implementation framework shows that one has clearly understood the case study and the main issue within it. • It shows that one has been clarified with the HBR fundamentals on the topic. • It shows that the details provided in the case have been properly analysed. • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented. • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Sustainability at IKEA Group Harvard case is complete and properly answered. 17. Recommendations and Action Plan for Sustainability at IKEA Group case analysis For Sustainability at IKEA Group, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows: • Sustainability at IKEA Group should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. • Sustainability at IKEA Group should enhance the value creating activities within its value chain. • Sustainability at IKEA Group should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market. Email us for Any Case Solution at: [email protected] Note: This article is just a sample and not an actual case solution. If you want original case solution, please place your order on the Email.

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