Question

1. How is the IKEA operations design different from that of most furniture retail operations?
2. What do you think might be the major problems in running an operation like IKEA?
3. What do you identify as the ‘operations function’ within IKEA? How is this different from the ‘sales function’?
4. Your suggestion for further improvement of IKEA operation cycles?

Answer 1

Answer:

IKEA is a privately held Sweden-based furniture manufacturer which specializes in making ready-to-assemble furniture like bed, chairs, sofa and international home products. It also happens to be the largest furniture retailer of the world. IKEA is renowned for its innovative architectural designs of its products and concentrate exclusively on eco-friendly interior design. With its inception in 1943, the firm has kept focusing extensively on reducing operational cost and provides superior products to its customers through continuous product development exercises. DFS, primarily known as Direct Furnishing Supplies is a British furniture supplier who runs its operations mainly in England and Ireland. DFS is a specialist in making sofas and soft furnishing items. This company was acquired by Graham Kirkham in 1983 who was the owner of Northern Upholstery, previously the biggest customer of DFS’s supplies. Meanwhile it became one of the largest furniture makers of England with the help of its sophisticated product designs and operational efficiency. For marketing campaigns, DFS has presented itself as ‘Deals for Sunday’.

Explanation:

please mark it as branliest

Answer 2

The correct answers to the questions are -

1. IKEA's operations design is different as it follows a 'maze-like' structure in its design to isolate its customers from their cash such that, when zigzagging through the store, the confused customer gets exposed to several other IKEA items and feels compelled to buy some more furniture and accessories.

2. The major problems include -

• As, IKEA is a huge store there is requirement of a huge workforce. Workforce management becomes a critical issue.
• IKEA's mazelike systems is a complex layout, and can be a concern for consumers in the event of any accident occurring at the shop.  
• The store also has other items, such as beds, sofas etc. With the passage of time and in a 'no-sales' situation these goods will become unusable if there are no proper maintenance activities

3. An organisation's operational functions may be defined as a resource arrangement dedicated to the development of its goods and services. In the case of IKEA, the operations function's main objective is to have a competitive edge at the marketplace. Sales function is new for them and different from warehousing.

4. IKEA can improve through -

• Logistics Management
• Receiving and Replenishment
• Workforce Management
• Stock Controlling