Identify and define any FOUR (
Identify and define anyFOUR (4) strategic operations management decisionareas that IKEA has relied on to innovate its operations.State the objective of each of the four decisionareas identified, and for each decision area identifiedprovide two examples of activities used by IKEA toachieve the objective.
Answer:
OBJECTIVE | AREAS OFSTRATEGIC OPERATION MANAGEMENTDECISION | EXAMPLE 1 | EXAMPLE 2 |
To improve the shopping experience for a wide range ofclients. | Structuring the stores to encourage the smooth progression ofclients. | The Exit zone has administration focuses, and a stacking zonethat permits clients to bring their vehicles from the vehicle parkand burden their buy. | Unmistakably set apart in-store alternate routes permittingthose clients who simply need to visit one territory to abstainfrom experiencing all the former regions. |
High caliber and advance sourcing cost. | IKEA depends on close association with its providers toaccomplish both progressing gracefully effectiveness and new itemadvancement. | IKEA has sourcing experts who visit the provider manufacturingplants to evaluate quality and grow new items. | IKEA gets criticism from the clients to fuse changes in theitem in brief time frame. |
To reduce production and transport cost. | The idea of selling furniture as self-assembly flat packs. | The leaflets containing the Do it Yourself (DIY) gathering offurnishings. | Online recordings of the get together procedure are accessibleitem code savvy on their site. |
To lessen the expense of retailing | The idea of ‘showroom-distribution center’ , which expectedclients to get the furniture themselves from the stockroom. | A new distribution center framework to stop well known productofferings running out during the day. | All furniture conveys a ticket with code number which shows itsarea in the distribution center. |