Exam on Business Essay Example | Topics and Well Written Essays - 2250 words

Exam on Business - Essay ExampleThe research was ground on the premise that both the layout and location of Ikea stores were indeed intentional, but only in so far as they serve the function of operations instruction to advance the strategic thrust of the firm. The strategic goal of Ikea is to provide quality furniture at reasonable cost its target market includes people of only walks of life, particularly those who could not afford the high cost of conventional, ready-made furniture. Its product design employs knocked-down assembly type furniture which may be stored in pie-eyed straight off packs. The product design and manufacturing process are all intended to serve the principal philosophy behind Ikea to reduce production costs darn maintaining quality, and engaging the customer in the production process by leaving the assembly of the furniture to them. The location and layout of Ikea stores are but an extension of the production strategy. The flat pack design of the furnitu re assembly kits enables their storage in compressed sweeps a system that facilitates quick location and identification of particular products supports the warehouse-type storage area adjacent to the show area. The store layout is consistent with the firms self-service philosophy, so customers decide on their choice of purchases in the show area and go under their own goods in the storage area. As mentioned in the report, the principal complaint of consumer groups is that Ikeas layout forces customers to go through their entire display and entices them to make impulse purchases against their intentions. look into fails to substantiate this allegation, however. Customers who do not wish to secure anything are certainly not forced or intimidated into doing so. It just happens that visitors to Ikea usually find something else that they unconquerable they needed or wanted. The layout therefore facilitates customers view of Ikea products to enable them to find what they may not have intended to purchase at the beginning, but which they considered they wanted to buy anyway. The layout helps customers decide what to purchase, it does not compel them to purchase at least, not any more than any other store that markets retail merchandise. In the choice of location, principles of operations management require the consideration of the following factors adequacy of market potential, accessibility to customers, potential for growth, business interception, attraction to customers, compatibility with surroundings, minimisation of competition, and site economics. Of these, the principal complaint of competitors has to do with the minimisation of competition. That this has been accomplished by Ikeas entry into the locality is not disputed the question is, whether it has been done ethically or not. Whether unethical practices were employed in getting local administrators to permit Ikea to open at their locations is not supported by proof, and to decide in this direction i s prejudicial not only to the follow but moreso to the local authorities. As far as the research uncovered, Ikeas location in the locality afforded the immediate community or city monumental advantages in terms of employment and access to reasonably priced goods and services. The location of