2. What are the main insights or new understandings that you gained from the application of HSM to the IKEA case study?

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2. What are the main insights or new understandings that you gained from the application of HSM to the IKEA case study?

مُساهمة  whatsapp:00966541597560 في الأربعاء أكتوبر 26, 2016 6:44 am

IKEA

IKEA started in Sweden over 50 years ago with one man’s vision. Ingvar Kamprad, the founder of IKEA, asked the questions:

• Why are nice homes only possible for people with a lot of money?
• Why should none be able to afford a nice, functional home?
• Why does furniture have to be so expensive?
• Why is there no one offering a wide range of home furnishing articles of good form and function at prices so low that the many people can afford them?

Ingvar Kamprad wanted to help create a better everyday life for the people in the area of Sweden where he lived. He was brought up in a farming community where ordinary people were struggling to make a living out of stony fields and limited resources.
Nothing could be taken for granted and survival meant hard work, ingenuity and working together. Ingvar Kamprad’s desire to help ordinary people founded the basis of a strong company culture, which has helped to make IKEA so successful. It is not surprising that IKEA comes from Sweden - a country that has long been famous for the way in which it cares for its citizens. In a recent IKEA publication, Democratic Design, the concept of giving everyone the same opportunity in life is set out in the following way:
“..Everyone who has grown up in Sweden has learnt - either from their
Dad, or from society in general - people who are not all that well off should still be given the same opportunities as people who are. It’s hardly surprising that, as a Swedish company, IKEA espouses Swedish values.”

Creating an anti-brand
The IKEA concept was a revolutionary one, which was well ahead of its time.
Essentially, IKEA has built an anti-brand, which stands for the good of the many people rather than a narrow group of shareholders. IKEA began with the question: Who is on the side of the customer?
From this stemmed a corporate philosophy, which asked two further questions:
Isn’t there room for an anti-brand that stands for low price, high quality and innovation? Isn’t there room for an anti-brand that stands for the benefit of everyone?

High quality at affordable prices
In order to realize the aims of his business idea, Kamprad needed a way of designing which would make it possible to maintain high quality standards, while at the same time making reductions in price. The solution he came up with was based on common sense and a respect for the customer. He carried out detailed research in the different life stages and the needs of customers at each stage (e.g. setting up home for the first time, raising a young family, retiring etc.). From this, he was able to calculate what customers would be able to afford, while still having some money over.
Then he sourced the right materials and the production units, which had the expertise and capacity to produce goods economically. In many cases, he approached producers who were not part of mainstream furniture manufacturing. For example, a shirt manufacturer may well be suited to producing loose covers for settees and beds.
Large IKEA stores were built on the outskirts of towns where rates were cheaper and people could park easily.
The furniture was sold in flat packages which saved space and allowed for ease of handling and transport.
Finally, Ingvar Kamprad built his business on the philosophy “We do a little, you do a little, together we save money” which meant that the customer became part of the production process. The DIY idea was refined and put into operation on a large scale. All this allowed for long production runs, which provided economies of scale and growth whilst maintaining the quality of the finished products. Instead of increasing the numbers of service personnel when the business grew, he kept the numbers the same, reasoning that employing more people would cost more money and this would make the products more expensive (so that buyers would not be able to afford them).
The simplicity of the way of working is what makes IKEA successful. The initial vision “to create a better everyday life for the many people” is even more relevant today than it was 50 years ago.

IKEA’s vision
A vision is the ideal or aim to which an organization and its people work. The vision statement should answer the question – “Who is IKEA?” Having a clear vision enables an organization to enthuse its employees, customers, suppliers and other important stakeholders. Ingvar Kamprad’s vision, for example, was different and exciting because it said that ordinary people mattered. Nowadays, many modern organizations set out to create a corporate and a personal vision for the people that work for the organization.
Today IKEA’s corporate vision is that of “A community of professionals, constantly developing the skills necessary to create a better everyday life at home for the many people.”


1. Apply the Hard Systems Method to this IKEA situation case, including spry diagram in order to brainstorm, analyse and make suitable recommendations. Provide a detailed narrative explaining your thinking process. (1500 words)
(50 marks)

2. What are the main insights or new understandings that you gained from the application of HSM to the IKEA case study? (400 words) (15 marks)

3. What are the main criticisms of the “Hard systems method”? To what extent do you agree with these criticisms? (400 words) (15 marks)


4. What is CATWOE? What do the letters stand for and how is this tool used (based on the case study)? (400 words) (20 marks)



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الإجــابة النمــوذجية
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[عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الإجابة النموذجية ، للتسجيل اضغط هنا] || الكاتب: [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الإجابة النموذجية ، للتسجيل اضغط هنا] || المصدر: [عزيزي الزائر يتوجب عليك التسجيل لمشاهدة الإجابة النموذجية ، للتسجيل اضغط هنا]






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