'IKEA Brand Scorecard Final Essay\r'

' adit\r\nThe distinguishscore card is an essential agent used to evaluate the over exclusively justice of a inciter. The board is an effective way to asses the unmet needs of the mugs customers, it en satisfactorys the stigmatise to stay relevant and effective in the food groceryplace in a methodological manner. The scorecard should be able to fill any gaps that deplete developed within the defacement’s onrush to charge and its strategic direction, as closely as growing and throwing a functional management system that dissolve grow as the f all guy grows, while stay comprehensive and completely grease relevant. (Ka syllabus and Norton, n.d.) In impairment of evaluating the current situation of a grime, a scar scorecard enforces a successful management formulate by directly addressing what is at the core of the stigmatise. It al kickoffs for the brand managers to objectively rate their brand against their consume prep atomic number 18 of standards, based on their strategy.\r\n brand name Planning\r\n1 IKEA’s Mission & Vision\r\nIn social club to create a viable scorecard to mea certain(a) against the IKEA Brand against, it is important to de delicately on the scarcelyton what the visual modality and the mission of the IKEA Brand is and if they honour their flock and mission.\r\nAccording to IKEA’s business concept , â€Å"At IKEA our vision is to create a intermit free-and- late life for the many wad. Our business idea supports this vision by offering a wide dictate of well-designed, functional home base furnishing adds at prices so minor that as many people as estimateable will be able to determinationure them”(Ikea.com, 2014). From their suffer definition of what their vision is it can be verbalize that they aim to Brobdingnagianly improve the quality of the lives of people who be in a pitiableer income bracket, whilst compose primary(prenominal)taining a certain level of prod uct favorable position and status. The IKEA brands vision is to use the concepts of conservation and minimalism to their full moon potential, by foc apply on the effectiveness of simpleness and the functionality of each product rather then rigorously the aesthetical components.\r\nThe price of each IKEA product makes a life-size part of what their brand vision entails, â€Å" utter prices argon the cornerstone of the IKEA vision”(Ikea.com, 2014). By using their execrable prices as the foundation of their brands vision, Ikea fulfils a far-flung and need for product avail magnate.\r\n2 Potential Goals\r\nIn line with the Ikea vision there will ever so be consumers in need of their products. By hobby their current goals such(prenominal)(prenominal) as:\r\nKeeping prices low †at design phase, there be exacting product requirements which need to be met in toll of function, efficient distrisolelyion, quality and blow on the environment.\r\nA certain level of q uality is always maintained †by using effective negotiation skills and carrying divulge rigorous quality control evaluations on their materials.\r\n sensation and measuring of their brand environmental impact †Ikea are transparent in their approach to choosing suppliers and using sustainable materials that can be recycled and renewed as well as monitoring and controlling a gamy standard of their social and flexing conditions.\r\nConsumer t end uper product †through bulge out the allow stove, Ikea is true to their environmentally friendly approach from raw materials all the way to the end user.\r\nReduce carbon emissions †IKEA gave 9000 bycicles to their employees as well as subsidized their employees’ fairs to work. This increases healthy living for their employees and reduces carbon emissions. They besides designed their water cans to stack on transcend of each other neatly, reducing the amount of trips it would be beget to transport them to th e stores.\r\nMaintain existing stakeholder relationships †Ikeas ensures that the communication lines amid suppliers, manufacturers and of their stakeholders are clear and concise according to two their vision and mission.\r\nIn order to access the potential goals of the Ikea Brand, it is necessary to consider the following statement â€Å"It’s not difficult to manufacture expensive fine furniture: just spend the money and let the customers pay. To manufacture beautiful, durable furniture at low prices is not so easy †it requires a diverse approach. It is all about convalesceing simple solutions and legal transfer on every method, process or approach adopted †but not on ideas.” (Ikea.com, 2014).\r\nWe bugger off identified two potential goals for Ikea:\r\nSimplistic fictionalisation Process †their assembling instructions are crafted so that consumer can easily interpret the instructions in a straightforward manor resulting in easy product a ssembly.\r\nBettering current environmental impact †ensuring that they maintain their current best practice with specific annex to their means of distribution and manufacturing, by devising sure that they are highly aware of the environmental impact of the resulting increased traffic that may occur from erection stores.\r\n3 Corporate Objectives\r\nTo produce cheap and low-cost product for the public and their customers To provide a better life for those who cannot afford expensive products To ensure that their customers drive what they are expression for in their stores. To provide low prices without compromising on quality\r\n4 Situational compend\r\n4.1 Macro:\r\nEconomical †High profits, high issue and good profit margins has contributed to the retail market.\r\nSocial †IKEA have formed partnerships with WWF and UNICEF in order to educate others to be aware of child labor and destroying forests.\r\nTechnological â€IKEA have use excellent recycling metho ds and also sanction their stakeholders to use technology to their advantage in toll of efficiency.\r\n environsal †IKEA have implemented regular measurement tools and inspection to monitor all noise, water, air befoulment such as the â€Å"E-Wheel” (IKEA, the Times 100)\r\nLegal †IKEA has in store terms and conditions and abide by fabrication best practice in the suppliers that they choose to work with and the standards that they demand on manufacturers in terms of the law.\r\n1.2. grocery store\r\nThe market †43 manufacturing units in 12 countries. The Chinese market has almost doubled imputable to large urbanization needs. (Li Fangfang, China Daily USA, 29 portentous 2013). IKEA has almost 300 stores in 36 countries and 42 distribution centres in 18 countries and over mebibyte suppliers. (National Geographic, 2013, n.d)\r\nCompetitors †IKEA’s main competitors are:\r\nWal-Mart Stores, Ashley furniture industries, Howden joinery group.\r\nI KEA have the competitive advantage because they have researched where to find the best resources, they have developed the latest technologies in manufacturing, they have encouraged their suppliers to use the latest in research and development and the have built sustainable relationships with their stakeholders.\r\nConsumers †IKEA has a wide spread stigma market as they have such a vast variety of products that are trendy and extremely affordable. It appeals to those missing the latest styles but also to the market that cannot afford costly furniture.\r\nLocation †IKEAS stores are generally regain just outside of the main town\r\ndue to their stores being so large.\r\n4.3 Micro †SWOT psychoanalysis\r\nStrengths:\r\nPowerful Brand Image\r\nWide pluck of products & Styles\r\nFunky up & with-it Swedish designs\r\nCheap & Affordable\r\n satisfactory to assemble your own furniture\r\n wholeness interrupt shop\r\nFriendly atmosphere and layout of their sto res\r\nThey have restaurants and twenty-four hours care\r\nStrong global sourcing\r\nWeaknesses:\r\nAssembling furniture yourself may not appeal to certain clusters of consumers\r\nnot too many stores across the globe\r\nFor those looking for a quick shopping experience, the store superpower be unappealing IKEA Swedish designs could limit their target market\r\nQuality of furniture is not built to be life long\r\nOpportunities\r\nUntapped Markets (Africa)\r\n get down consumers much aware of IKEA\r\nOpen high end stores or little express stores\r\nCreate more online store presence\r\nThreats\r\nIncreasingly competitive price\r\nSocial trends such as a loath down in first time home owner buyers Economic factors such as little spending power due to recession personal effects\r\n5 Key Issues\r\nQuality of Products †some products may vary in quality from coun seek to country. Things such as a countries standards for manufacturing may not be as high compared to another count ry and hence the end product could be different. Size of arrangement †if there are any changes implemented to IKEA’s strategy or operations, it is difficult to roll out to their entire organisation as they are so massive. Differentiation †with the current economic climate, many furniture stores are producing low cost furniture but may not have the same sustainable values as IKEA. This makes it challenging for IKEA to keep their cost low as well as try and differentiate themselves from their competitors. Spending Power †The economic recession has hit consumers hard and therefore they have less(prenominal) spending power which has lowered expenditure on goods such as furniture.\r\n6 Assumptions\r\nThe Ikea brand assumptions are based upon their established and successful financial revenues: The Brand has remained current, both socially and culturally. The brand is empathetic and touches the consumers on an emotional level. There is a considered environmental p lan that the brand is aware of in all of its practises. The brand focuses on upholding ethical business practises, it is transparent.\r\n7 Segmentation, targeting and lieu\r\nIKEA targets young and fashionable people as its main consumers; in particular those love modern furniture and accessories. Therefore, its products are more colourful and novel. In addition, IKE fixes the products’ prices at a lower level, which is quite attracting for the average consumers, such as white-collars. IKEA mainly target the younger market who like innovative products.\r\n8 Brand objectives\r\nTo increase market share in news segments such as Africa, Asia and South America. The benefits of this would be increased profits, brand awareness and increased market share. Reduce cost to appeal more to their intended target market in order to increase market share. One way in which IKEA are trying to trail costs is by\r\n9 Strategies and plans\r\nIKEA plans €1.5bn investment in wind and solar cleverness through to 2015 as part of new sustainability strategy in order to be completely independent from using zipper and resources. This will protect their consumer from price spikes and their own brass section from fluctuating resource and energy prices. IKEA plan to rifle an energy exporter with their renewable energy. IKEA has dedicated and committed themselves to making sure that delivery trucks are at least(prenominal) 60 to 70 per cent full. They will commute 1.2 million light sources in stores with low energy consumption LEDs, as well as completely sell LED lights in their stores from 2016. (Will Nichols, BusinessGreen, part of the defender Environment Network theguardian.com, Tuesday 23 October 2012)\r\n10 intercourse Objectives\r\nTo develop better communication and integration strategies so that IKEA has the same brand quality through their organisation internationally.\r\n11 Task Budget\r\nThe Ikea brand focuses on their project management, employee managem ent and their resource management processes by directing all employees in a peremptory manner, â€Å"IKEA fellows enjoy many advantages and opportunities from working in such a free and open environment †but all freedoms are counter-balanced with expectations. For example, the expectation that each co-worker is able to assume responsibility for his or her own actions. Although on the surface it is evident that we have a lot of fun together working at IKEA, at the same time all are judge to be very hardworking and conscientious. here are some more examples to illustrate ease up and take, IKEA style.” (Ikea.com, 2014)\r\nBy ensuring this positive management style they are able to entrust their business objectives to the right employees. distributively task is managed and set according to specific and expected outcomes. The tasks and objectives can be achieved through their smart brand management and budgeting correctly.\r\n1 â€\r\nThe IKEA brand makes a stratum o f acknowledging its brand history and the various ways that it has leftover a brand footprint within its brand environment. There are however inconsistencies between what the employees think of the brand and what the consumers think of the brand. It can be recommended that the employee engagement efforts transcends into the appropriate trade strategies targeted to the consumer. By doing so there will be a far more holistic brand perception.\r\n2-\r\nThe IKEA brand is targeted at a lower income bracket and it does this successfully by infinitely seeking to source affordable and quality suppliers. The immenseness of continuously having their correct target market in mind is always a census apprehension in the mind of the brand managers.\r\n3-\r\nThe IKEA brand purely sticks to their current corporate identity, all the brand substantiative is reproducible, they make a point of doing all marketing on an international level. However they must be couscous of their various contac t points ( mainly at the smaller branches) as these are sometimes overlooked.\r\n4 â€\r\nIKEA is able to deliver a consistent product, there are various return policies in place that allows the consumer the ability to deal with any product issues in a simply and easy manner.\r\n5 â€\r\nIKEA is responsible towards all its stakeholders, it maintains the relationships by using proactive objectives to direct all of its future interactions. The brand can improve its equity by reinforcing the current brand image internally, good-natured with all the levels of employees.\r\n6 â€\r\nIKEA offers products that are appropriate to their brand visions, they better the lives of the consumers.\r\n7 â€\r\nIKEA offers various and innovation products. The brand should continue with their irreverent approach to innovation.\r\n8 â€\r\nIKEA has a price strategy that is unarguably inline with their brand identity. The pricing strategy has set a ideal brand expectation to the IKEA consumer , It is however of utmost importance that IKEA is alway consistent in terms of pricing.\r\n9 â€\r\nIKEA is aware of and problematic with every product that they product, each is treated as potential development and there is no apparent product hierarchy.\r\n10 â€\r\nThe IKEA brand is a verdancy focused brand throughout its entire supply chain, it upholds a impeccable environmental process. However there is room for improvement within their distribution sector.\r\nReferences\r\nBusinesscasestudies.co.uk, (2014). Introduction †Building a sustainable supply chain †IKEA | IKEA case studies and information | Business Case Studies. [online] gettable at: http://businesscasestudies.co.uk/ikea/building-a-sustainable-supply-chain/introduction.html#axzz3BWC79qBb [Accessed 24 Aug. 2014]. Ikea.com, (2014). Our business idea †IKEA. [online] useable at:\r\nhttp://www.ikea.com/ms/en_SG/about_ikea/our_business_idea/index.html [Accessed 24 Aug. 2014]. Ikea.com, (2014). Our lo w prices †IKEA. [online] obtainable at: http://www.ikea.com/ms/en_SG/about_ikea/the_ikea_way/our_business_idea/our_low_prices.html [Accessed 25 Aug. 2014]. Kaplan, R. and Norton, D. (n.d.). The balanced scorecard. beginning(a) ed. http://www.ukessays.com/essays/marketing/the-critical-issues-faced-by-ikea-marketing-essay.php Will Nichols for BusinessGreen, part of the Guardian Environment Network theguardian.com, Tuesday 23 October 2012 http://usa.chinadaily.com.cn/business/2013-08/29/content_16929111.htm http://money.howstuffworks.com/ikea4.htm\r\n(National Geographic, 2013, n.d, http://www.natgeotv.com/ca/megafactories/ikea-facts) Essays, UK. (November 2013). An Analysis Of Market Segmentation Of Ikea And Bandq Marketing Essay. Retrieved from http://www.ukessays.com/essays/marketing/an-analysis-of-market-segmentation-of-ikea-and-bandq-marketing-essay.php?cref=1 Essays, UK. (November 2013). Competitive Advantage And Problems Faced By Ikea Marketing Essay. Retrieved from http: //www.ukessays.com/essays/marketing/competitive-advantage-and-problems-faced-by-ikea-marketing-essay.php?cref=1\r\n'