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IKEA Company
Values- Based Service Brand
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Introduction
On creation of values based on stakeholders and customers, A lot of keen interest has been taken by IKEA. This will help in the promotion of environmental and development of the company and the social responsibility that will assist the stakeholders and customers in accordance to the company’s success (Colvin, 2008). To promote attributes to satisfy stakeholders and customers’ needs, IKEA has ventured or taken a lot of attention on marketing. This papers demonstrates and discusses the marketing, intangible products, performance measures, customers, and Strategy of IKEA consisting Value Chain
IKEA’s Marketing
To know and understand the needs of the customers, marketing has become the main attribute that lead the company. Marketing ensures that the customers receive the wants they require for the in order to satisfy the sustainability of the stakeholders and that of the customers as well. These contribute in company development and it also ensures that the customer is totally and well taken care of by making available all the resources they require.
Marketing assist the company to value the stakeholders of the company and the customers. This is achieved by presenting the importance of customers and stakeholders to the company. It puts more concentration on the environment as one of the important values as it values since the environment deal with most of the issues affecting the company in the world of management ((Joseph, 2002). Environment is the employees and company there and it illustrates whether they handle their customers well for the company and make them feel more comfortable make them feel more happy and contented when they are buying.
They ensure that there are various development and assist in the company’s growth in the world of competition. Due to the income earned from the customers, economy becomes the other value which ensures the development as they ensure company’s growth in the competition world. The company is assisted by economy to make it fit in the growing economy of the world and ensures that the confidences of the customers are intact in the company as a result of its economy.
The behaviors of the employees in the company are showed by the social values. It ensures the happiness and comfortably in the company as they work for them so that they can relate well the customers. The key that most people ensure that they have so that they can get the normal understanding of the development and show important points on how they recount/relate to the customers in their working area is communication. Communication is therefore an important attribute as it ensures that the employees and the customers have good working relationship in the company (Dr. Mark, 2007).
IKEA’s strategy
Value Chain
In the IKEA Company, there are three value chains. They help in understanding, in the income earned and widely in company development. One of the values that promote the development of the company is economics. This is because economics promotes income generation is not out of force and is much related to the world growing economy. These are so because to the needs of the customers are known to the company management since they ensure that the needs of the customers are accomplished and that of the stakeholders as well. Social value is referred to as the community and that the people involved in these values are the customers. This also helps to develop the company farther as it ensure that there is good relationship between the customers and the employees of the company.
The most preserved to that of the products’ nature and how they affect the customers and the employees are the environmental value (Joseph, 2002). It takes the great choice and value of the customers as they consider the environment and how they are treated whenever they come to the company.
Intangible Products
The IKEA intangible products are designed by the company in such a way that they affect the customer, suppliers and the employees and it has interfered with the nature of the sakes of the products. Sometimes it is a benefit to the customers since they help them in identifying the value of the products and also assist them in understanding the products’ value.
Suppliers benefit from the means of transportation of the products depending on the nature if goods that reach the customers. In all these, it also helps the company to be in position of understanding the strength of and values of their goods ((Dr. Mark, 2007). Those who are majorly affected by this are the employees since they are the ones who experience several difficulties as a result of these intangible products.
The barriers ensures that the products produced or made are different from their competitors as they warrants that the customers get a view of various product even if they pay a visit to their competitive companies. This also certifies that the company is valued because of the fact that there is great assistance in developing world economy.
To all the customers, employees and even the suppliers, these intangible products are of value to them since they have exceptional common nature in the market as results of the goods they supply. The benefits of the tangible products assist the company in the idea on how to enjoy good product of value and this assist in boosting the economy of the company and ensures that the development flow among the workers are maintained (Colvin, 2008). This therefore, enables the company to fit well in the world economy since they have several customers which increases the profit that is earned annually.
Customers
Since customers help in the main development of the company, they are considered the main stakeholders. They are the ones who ensure that they very much comfortable with the IKEA values. The flow of profit and income earned is determined by the customers and the company can possibly loose the customers if they do not develop the values and these can result to the collapse or fall of the company.
Though customers maximize the profit that IKAE make in one year, they can also minimize that profit as it can result to the fall in the income. The products also determine the commitment of the customers since sometimes they may not feel contented with the kind of products being offered to them by the company. It is the customers that determine the operations of the premises.
Sometimes when customers are not pleased with the products supplied to them by the suppliers, they can reject them and this may lead to the fall of the company affecting the economy of the entire country. When the products are in good state or the products are in perfect condition, the demand of those products rises and this makes the employees and the suppliers to work extra time to meet the demand by the customers (Van, Hogan & Kaiser, 2008). This high demand boosts the country’s economy and develops the company further but the employees are affected since they don’t have time to develop their life due to lots of job that is offered to them.
Performance Measures
It is the nature of the organization that determines the performance. These are the customers, managers and employees. One of the measures that determine performance is the attendance of the employees and the customers since it reflects the income flow. Communication is also very important measure at it promptly assist in the supervision of the taken in a certain work and the time wasted.
The commitment of a person to work is determined by regular attendance that is appointed to that particular person in the company. Focusing on customers help the customers in product nature that is offered since it also helps in resource development and still contributes in nature development. Customer service is also another measure of performance. The company may have high buying power from the customers depending on how they are introduced to the available products.
The nature of the negotiations between the customers and the company and how they relate and come up with the product is another measure of performance (Dr. Mark, 2007). Customers also contribute in boosting or raising their confidence and in solving their problem.
Interpersonal relations are also another important measure. The relationship between the management and the employees must be perfect and in good condition to motivate the customers. This will help the way employees view at themselves and the customers too and if the company is worth their services.
In the matters of development, the actions of the employees are very important and matters a lot as they view knowledge and acceptance of the employees. Responsibility is also one of the significant measures which most people lack. Both the employees and the customers should understand that the organization exists because of them. Therefore, they should have the responsibility of developing the company and raising the economy of the country (Ku, 2008).
Recommendations
In my own view, I can recommend that IKAE should increase the number of workers/employees so that whenever there is high demand of the product, employees can be in shift. Some will be working on day shifts while others will be working on night shifts. This will make the company has a rising flow of profit.
Conclusion
Due to the different fantastic styles used by IKAE in designing and the values offered to customers, IKAE has become the largest company. This has made them to post a major challenge to their competitors hence ensuring a continuous growth of the economy and the country at large.
References
Journals
Ku, G. (2008). Learning to de-escalate: The effects of regret in escalation of commitment.
Organizational Behavior and Human Decision Processes, 105(2), 221-232.
Van Vugt, M., Hogan, R., & Kaiser, R. B. (2008). Leadership, followership, and evolution:
Some lessons from the past. American Psychologist, 63(3), 182-196.
Colvin, G. (2008, July 21). Information worth billions. Fortune, 158(2), 73-79.
Articles
Citizen Engineers: Leaders in Building a Sustainable World
Joseph “Bud” Ahearn. (2002). SVP CH2M Hill, Denver, Colorado
Turn Your Values into Value
Dr. Mark S. Albion. (2007). Co-Founder, Net Impact, San Francisco, California
