Assignment #2

 

Company Sustainability Reporting Analysis

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Mitul patel

 

 

 

 

 

 

 

 

 

 

 

Executive Summary

This report covers the researched conducted on the globally known
Swedish home furnishing company IKEA. The theoretical framework covers total
responsibility concept and company’s related concepts. The purpose of the
report is to investigate and study whether how company is handling its business
related cases using its Triple Bottom Line framework in order to attain their
design objective and desire vision of becoming a more responsible and
sustainable company. The report starts with providing a little background or
overview on company and goes through by providing some highlights on the notion
of their triple bottom line framework.

On the other hand the research also provide detailed information on company’s
sustainable growth and improvement in their innovation ideas. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis

 

IKEA is intentionally known as home furnishing Retailer Company. It
has grown rapidly since it was founded in year 1943. Today it is the world’s
largest furniture retailer company from its European style. IKEA carries
approximately about 9500 product including, furniture and home accessories. All
these product are available through wide range in IKEA store’s or in the
company website. IKEA has around its 410 stores in about 49 different
countries.  Its majority or furniture are
flat-pack and ready to assemble to customers. These would allow them to
reduction of costs and packaging. Over the previous 60 years, IKEA has grown
from a simple entrepreneur into a cluster of companies with 76,000 associates.

At present they have about 18 stores in UK which is more majority than
any other countries. They also serve restaurants and cafes serving typical
Swedish food in their stores. They also sell famous Swedish groceries including
meatball and jar.  The IKEA vision is to
create a better everyday life for the many peoples putting this concern at the
heart of the business. The business idea supports their vision by offering 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.  It
welcomed a total of 565 million visitors to the stores during the year and a
further 450 million visits were made to the IKEA website. IKEA sales reached
21.2 billion Euros in 2008 showing an increase of 7%. The biggest sales
countries are Germany, USA, France, UK and Sweden.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recommendation

IKEA should continue using its positive branding strategies. For
example, in order to create a renowned trade mark in Ireland, IKEA should pay
more attention to its sustainability goals. IKEA can retain its market value in
Ireland by planning to act against their threats, particularly by using the
innovative business ideas, and focusing upon the company’s strengths and
opportunities in the market. IKEA’s pricing approach targets customers with
limited buying potential; it should also create products for the premium
consumers by providing high-quality designs and extraordinary styles with fair
prices as consumers can afford. The goals of sustainable development and the
corporate social responsibility is not only contribute to the company’s
reputation, but also to its brand value and image in global market.

It would also help them to improve its revenues and consumers buying
experience. Therefore, the company should continue developing functional and
innovative styles, ideas and products for variety of categories for potential
consumers for attaining high market share and increase the image in the global
market.