Impact on Global Community

Impact on global community

Sustainability is important to make sure that we have and will continue to have, the water, materials and resources to protect human health and environment.

IKEA has a huge network of suppliers and distribution centers through which loads of volumes are transported to retail stores every day. Today products are shipped into containers using card board pallets which are light weighted and smaller than regular wooden pallets, thus creating possibilities to reduce transportation costs and saving forests which are crucial part of life on earth.

Importance of strategic operations for organizations strategy

Managing strategy differs from managing operations. But both are vital, and need to be integrated. "A visionary strategy that is not linked to excellent operations and governance process cannot be implemented. On the other hand, operational excellence may lower costs, improve quality and reduce lead times; but without a strategy vision and guidance, a company is not likely to enjoy sustainable success from its operational improvements alone". Reference from Kaplan and Norton successful process redesign - www.cutswatch.org.uk

The management system presents a six stage comprehensive, closed loop management system that integrates management tools to help companies execute their strategies;

1- Develop the strategy

2- Plan the strategy

3- Align the organization

4- Plan operations

5- Monitor and learn

6- Test and adapt

The company continues to drill down to process management by identifying the key process objectives that drive the achievement of the customer and financial objectives. The company then identifies the key performance indicators which drive the process. The next step, the company identifies the critical success factors for employees to strive to achieve while performing the process.

Through operations strategy effective linkage among objective can be secured in the following perspectives;

1- Financial

2- Customer

3- Process

4- Learning and growth (people)

During annual planning process, we as store steering management group develops the business plan using the following strategic planning process;

* Analyze the present situation using SWOT (strength, weakness, opportunities and threat)

* Determine strategic issues as an outcome from SWOT analysis

* Specify