Case Study: IKEA Supply Chain
SAQ 5:
Watch the video clip below on the competitive advantage a business gains from managing its supply chain:
YouTube – Thomson Reuters: Can a supply chain be your competitive advantage?
Using the IKEA case study above, identify the ways in which IKEA manages its supply chain to gain competitive advantage (add rows to the table as required).
Answer:
| Key factor in IKEA supply chain: | Resulting advantage: |
SAQ 7:
In this section, we looked briefly at the McDonald’s business model and some of its stakeholders.
Draw a diagram showing as many stakeholder groups as you can think of for McDonald’s. You should consider both primary and secondary stakeholders.
SAQ 8:
Review the following article and using the Posh Pies Case Study, produce a simple SWOT analysis for the business using the template below. You can also refer to the following webpage:
pestleanalysis.com: Internal factors that may affect the business organization
POSH Pies
POSH Pies is a specialty pie shop using top quality ethically sourced ingredients with a focus on health. All products will have low salt, low sugar and reduced fat with added taste. It is the first time that such healthy options have been available in a pie. It sells hot, healthy ready-to-go pies and frozen take-home options, as well as an assortment of fresh salads and beverages. The company is planning to open its first shop in London, in the centre of the City, and sees itself as a healthy alternative to McDonalds. This will be the first shop of its kind and it is anticipated that it will generate a lot of interest.
The management of the company is vastly experienced in the fast-changing consumer industry, with each member having a specialist skill and area of expertise. It is developing a business model that will see the company expand very quickly, based on franchising outlets all over the UK. However, in order to develop the franchising side of the business, POSH Pies will need additional capital.
The management of the company are preparing a SWOT analysis of their business to ensure that they have the appropriate business strategy. Case Study: IKEA Supply Chain
Answer:
(You will find the diagram to complete on the following page. Please click on the text boxes to fill them in)
SAQ 10:
For each category of a PESTLE analysis list a minimum of two issues you might consider for each factor, using a table like the one below
Answer:
| PESTLE category | Issues to consider |
| Political factors | · |
| Economic factors | · |
| Social factors | · |
| Technological factors | · |
| Legal factors | · |
| Environmental factors | · |
SAQ 11:
- The mission statements below are from three airline companies. Write a brief summary on what each of these mission statements tells you about the company and its target customer.
“The airline seeks to reflect the best of Arabian hospitality – cultured, considerate, warm and generous – as well as enhance the prestige of Abu Dhabi as a centre of hospitality between East and West. Our goal is to be a truly 21st century, global airline, challenging and changing the established conventions of airline hospitality.” (Etihad Airways)
“Our mission statement is to grow a profitable airline, that people love to fly and where people love to work.” (Virgin Atlantic)
“Our mission statement is to offer the lowest fares possible on all routes, while avoiding fuel surcharges and allowing customers to make alterations to their bookings.” (Ryanair)
- The mission statements below are from three retail companies. What does each one tell you about the company and its target customer?
“The price is forgotten long after the quality remains…” (Gucci)
“Our vision is to create a better everyday life for the most people. Our business idea supports this vision by providing a wide range of well –designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.” (IKEA)
“Our principal value to society lies in what we do every day: providing people with access to affordable food and clothing.” (Primark: Associated British Foods).