Managing People Performance - Case Study - Free Essay Example

Sample details Pages: 7 Words: 2170 Downloads: 2 Date added: 2017/06/26 Category Management Essay Type Narrative essay Level High school Did you like this example? Contents JOB DESCSRITION AND ITS BENEFITS POSITION AND JOB DESCRITION Duties and responsibilities: Qualifications: Recruitment and selection process DIFFERENT RECRUITMENT APPROACHES DIFFERENT TYPES OF SELECTION AND INTERVIEW Conclusion References . Don’t waste time! Our writers will create an original "Managing People Performance Case Study" essay for you Create order JOB DESCSRITION AND ITS BENEFITS Job description is a document which outlines the duty or work description of the employee, what actually company want from his/her employee in the term of effort. Job description consist different types of terms and conditions of the company that helps in the process of recruitment and selection, those aspects are: Description of position: job description provides the general information about the role that helps in the process of recruitment selection. This general information helps in attracting the right person for this job and employer can easily find the right person from those applicants (The Importance of Job Descriptions, n.d.). Function of the position: job description provides the duties of the position that helps the applicants to clear the view about that particular post, what company exactly looking for. In selection, that helps in filter the applicants through screening according to the position duties (The Importance of Job Descriptions, n.d.) Rather than those aspects job description can also be useful for the company in different ways like: Internal promotion: job description helps in internal recruitment, the person who is working in the company and exactly matches the job description and suits for that position, company can promote that person and this things also give motivation among the existing staff members. Analyzing performance: job description helps in analyzing the performance of the staff through analyzing their work according to the duties and KPIà ¢Ã¢â€š ¬Ã¢â€ž ¢s. Advertisement; job description helps in advertising the job vacancy in newspaper, company website and social media. Advertisement also helps in promoting the name of the company through various channels of promotion. POSITION AND JOB DESCRITION Every organization craft the job description according to the job title. Job description shows the duty, responsibility and other things which is designed for the particular post. Under this section organization is going to design a job description for the checkout supervisor. Checkout supervisor is a person who works for the aim to provide best customer service through their skills and knowledge. This person directly deals with customer, handle the queries of the customer and responsible to manages the customer flow through the checkout. Basic purpose: for this position the basic purpose is manage all the things at checkout point by helping the checkout clerks to provide best customer service for the organization, handle customer queries and ensures the customer satisfaction. Duties and responsibilities: Managing checkout clerks: supervisor have to manage the team of checkout staff, by helping them at checkout point and providing them a training of all about the checkout operations (Scott, n.d.). Maintain checkout points: supervisor duty is to maintain the checkout points by checking all the things is stocked over there or not. Those things are shopping bags, register tapping, billing roles etc (Scott, n.d.). Monitor customer flow: supervisor is responsible for monitoring the customer flow at checkout points because at this stage customer do not want to wait long because they already finishes their shopping and they are ready to pay for their purchased goods, at this point supervisor have provide the same level of satisfaction through their services and manages the customer flow (Scott, n.d.). Control transaction issue: supervisor is responsible to control the transaction issue where the checkout clerk got stuck, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s the duty of supervisor to help him in solving that error and handle that transaction (Scott, n.d.). Reporting: supervisor have report the status of checkout points to the store manager and all the checkout clerks report to the supervisor. Qualifications: Diploma in business management level 7 or equivalent experience Minimum 1 year of management experience Knowledge of computerized till system. Recruitment and selection process RECRUITMENT Recruitment is all about attracting the right person for the right job. Big organization like food stuff always have a well-crafted infrastructure or plan to go through from their recruitment process. Food stuff always looks to use most cost effective way to attract the right person for the right job for example they advertise job vacancy on their company website and through board in stores, and applicants who are interested in store based job can directly apply through their store. But sometimes they have to use different channels of advertisement for their most specialist job such as baker. They advertise these vacancies on T.V, radio, company website, Google leaflets and in magazines. Foodstuff always follow the infrastructure of their recruitment process first they always try to fill up the available position internally through internal talent plan, if they are not able to find the right person. They took second step that is advertisement on intranet for two w eeks. SELECTION Selection process refers to choosing the right person from those applicants who applied for job. To choose a right person, they use screening. In the first stage of screening, selectors looks through the curriculum vitae (CV) of the applicants keenly. CV contains the information of job and education history of the applicant. A CV is the use as the main basic thing because CV reflects the image of that applicant. The company also have the software of à ¢Ã¢â€š ¬Ã‹Å"job type matchà ¢Ã¢â€š ¬Ã¢â€ž ¢ on its career webpage , in which applicant can find the best job for them and also helps the selecting staff in selection process. In screening process they filter applicants stage by stage, first CV screening, second successful candidates called for an interview, third applicants who successfully clear the interview called up from screening attend assessment center and rest of them who are not able to clear receive a letter. Applicants who clear the screening atten d assessment center invited for the second interview. After the second interview who successfully completed it receive an offer letter and contract. DIFFERENT RECRUITMENT APPROACHES There are two types of recruitment process that a company always uses to fill up that vacancy. Those approaches are: Internal process External process Internal process Internal process is refers to the process where organization try to fill up that vacant position through their existing working members or staff. Food stuff use its internal talent plan because they always prefer first to fill up that position within the organization. Under this plan foodstuff always looks to fill up the vacancy internally. If they find the suitable employee for that vacancy they promote that employee or move the position of that employee at the same level. Foodstuff also uses the intranet. It refers to the computer networking that uses internet protocol to share information through computer within the organization. Through intranet they do advertising internally for two weeks. Advantages of internal process: Cheaper à ¢Ã¢â€š ¬Ã¢â‚¬Å" It is a cheaper process because in this company did not advertise that post on a big level. Saves time recruitment- it is a snappy process by doing internal recruitment company can easily save the time. Dis-advantages of internal process Limited choice à ¢Ã¢â€š ¬Ã¢â‚¬Å" organization have to select from a limited number of staff. A vacant vacancy- it still leaves a vacancy at that level when organization promote someone for the new role. External process External process refers to the process where organization try to fill up the vacancy from outside the organization. Foodstuff advertise the vacancy on its company website and board in stores. For some specialist vacancy they also different channels of advertisement. They advertise on TV, radio, magazines etc. Advantages of external process Wider choice- Organization got a wider people choice for selection. New skills- through external recruitment organization introduce a new thinking and new ideas in it. Dis-advantages of external process Expensive- it is an expensive process because organization have to use their funds for advertisement. Time consuming- it is a time consuming because in this process organization have to follow the infrastructure of recruitment and process. DIFFERENT TYPES OF SELECTION AND INTERVIEW Selection is a process that helps in selecting the right person for the job. There are different types of selection test that is made for the applicants to test their skills those are: Practical test Psychological test Cognitive test Practical test à ¢Ã¢â€š ¬Ã¢â‚¬Å" these test are very common for test the skills. This test actually helps to check the skills and work ability of the person in the working condition. These test are necessary for some positions for example working in barista, chef position etc. Advantages Makes the work easy for selector to select the right applicant by analyzing their performance through this test. Selectors can easily mark the score of the applicants objectively. Dis-advantages The person who actually works nicely cannot able to show their performance while selectors is watching his/her work sharply. Difficult to receive the results at timely manner. Psychological test- These test are help in determining the candidateà ¢Ã¢â€š ¬Ã¢â€ž ¢s personality, attitude and motivation. These test are specially designed by psychologist to measure those things. For example personality test (Chand, n.d.). Advantages This kind of test are less time consuming Selector can easily measure the personality type of the person and helps in selecting position whether this personality is suitable for the organization or not (Chand, n.d.). Dis-advantages These test are costly as compared to other test because these test are designed by psychologist that may charges organizations higher (Chand, n.d.). These test donà ¢Ã¢â€š ¬Ã¢â€ž ¢t have a proper scale of marking so sometimes selectors face difficulty to choose the right person (Chand, n.d.). Cognitive test- Those test are very useful to measure the skills like mathematical, memory and reasoning power of the applicant. These test is necessary for admin roles for example banking position. Advantages Easily measure the skills of the applicant through this test This test have a proper scale of marking so there is no scope for making wrong choice. Dis-advantages The result of these test are more time consuming. These kind of test are repeatable so these test can easily cleared by cheating and other source. Interviews Interviews are basically a kind of test to check the oral skills of the applicant. These kind of test are necessary for some jobs like any position for customer service, vacancy of telecommunicate etc. there are three types of interview, these are: Panel interview One to one interview Group interview Panel interview: In this interview more than two interviewer are involved. A team of interviewer take the interview of a single applicant. Each interviewer have its own question of different level to measure the skills of candidate. Advantages Makes work easy for organization to select the best candidate. More than one interviewer is involved in it so can help in making right choice. Dis-advantages It creates a nervous or negative environment for the candidate. Candidate can become confuse because of rapid rate of questions. One to one interview- this interview is interviewed by one interviewer, who is manager or HR personnel. These type of interview are mainly based on questions. Advantages Candidate feel more comfortable in this interview as compared to panel. Interviewer can make their decision fast about the applicant. Dis-advantage Can only ask limited question of the particular field Require a person who have knowledge in every field of business. Group interview: in this interview a group of candidate is interviewed at the same time. A couple of topics are given to that group for discussion. Interviewer can easily measure the skills and knowledge of applicant. Advantages Easily save time by interviewing a group of candidate at the same time. In this interview candidates can freely share their ideas and knowledge. Dis-advantages Some candidates did not feel confident to share their idea in front of group. Clashes of personality of candidates. Conclusion Organization like foodstuff use and follow a particular pattern of selection procedure. This pattern helps the organization to interview the candidate at different level and test their skills and knowledge at different level. When they follow hierarchy of selection process they filters candidate and able to find the best candidate for that post. In this structure they test the candidate two times through interview. First time by screening of assessment center and finally by HR personal or manager. By doing this they do a kind of double check with their candidates. Food stuff did not use any other selection and interview type because they already have a nice structure in selection process where they got assessment center and interview for their candidates to measuring their strength. If they will put some more types of interview in their hierarchy of selection process, it create complexity in it and more time consuming so there is no need to add some different types of interview. References Chand, S. (n.d.). Psychological Tests of an Employee: Advantages, Limitations and Use. Retrieved 05 16, 2015, from https://www.yourarticlelibrary.com/employee-management/psychological-tests-of-an-employee-advantages-limitations-and-use/27916/ Scott, G. (n.d.). Qualities Responsibilities of a Checkout Supervisor. Retrieved 05 15, 2015, from https://work.chron.com/qualities-responsibilities-checkout-supervisor-23818.html The Importance of Job Descriptions. (n.d.). Retrieved 05 15, 2015, from https://www.financialwisdom.com/pflsresourcecenter/HowardUniversity/SmallBusiness/JobDescriptions.shtml

Corporate Social Responsibility Csr - 986 Words

In the recent years, corporate social responsibility (CSR) has gained lots of attentions among public, and plenty of companies invest more efforts on the CSR activities (Hur, Kim and Woo, 2013). At the same time, companies can undertake their social responsibility in different ways, namely, CSR has some classifications, and most of scholars accept that there are three main classifications of CSR, which are related to social, economic and environmental issues. The reason why companies do CSR activities is that the pressure of the economy, society and environment enforce the company to take economic, social and environmental consequences of their business into account (Alsmadi Alnawas, 2012). What’s more, companies are able to gain benefits by undertaking social responsibility from the CSR activities. Positive brand image is the most vital benefit of CSR since it provides competitive advantage by having consumer commitment, which will give consumers’ high purchase intent ion and willingness to pay higher price for product or service (Mohr and Webb, 2005; S.M.M. et al, 2013). Ghosh and Das (2013) find out that companies are trying continuously to maintain and improve their brand image, because the positive brand image contributes to the competitive advantages and superior market share. And the positive brand image can influence customers’ purchasing behaviors since consumers prefer to choose the companies that have the good brand image (Maignan and Ferrell 2001). For instance,Show MoreRelatedCorporate Social Responsibility And Csr1566 Words   |  7 PagesSocial responsibility or also called Corporate Social Responsibility (CSR)- is the firm’s engagement (voluntarily initiated) in and its compliance (legally mandated) to environmental, social, and governance issues (The Foundation, 2014). Also, is based on stakeholder’s needs being financially sustainable, and CSR can come from both corporate or not-to-profit organizations. CSR has seven categories; Leadership, vision and values; Marketplace activities; Workforce activities; Supply chain activities;Read MoreCorporate Social Responsibility ( Csr )1167 Words   |  5 PagesCorporate Social Responsibility Introduction Corporate social responsibility (CSR) is a concept which is also known as corporate citizenship, corporate conscience or in a simple way a responsible business. It is an integrated concept of self-regulatory business model for any organisation. 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Corporate Social Responsibility (CSR) is defined by many groups like, Tata steel, Coca Cola, Reliance, Videocon etc. Although they all stand for similar meanings connecting to taking responsibilities of the society as a business individual, its definition has been getting broader from a established point of view, corporate social responsibility is a type of business instruction included in a business demonstration. CSR policy functions as a self-regulatoryRead MoreCsr : Corporate Social Responsibility Essay1285 Words   |  6 PagesCSR stands for Corporate Social Responsibility and it is a concept with many definitions and practices and also a buzzword in the media. In general, corporate social responsibility is the policies and progra ms of business corporations which tend to benefit society while improving a corporation’s public image and profitability at the same time. The meaning of it is implemented in different countries and companies differently. Warren Buffet said that it takes 20 years to build a reputation and onlyRead MoreCorporate Social Responsibility ( Csr )863 Words   |  4 Pagestechnology in the last century. The term of Corporate Social Responsibility appears more often into public’s concerned and it has become a hot issue in recent years. This essay is going to discuss and provide an overview of corporate social responsibility (CSR) by debate some key issue in this area. 1.2 What is Corporate Social Responsibility? In 1953, Bowen’s Social Responsibility of the Businessman firstly discusses the idea of corporate social responsibility. He states the relationship between societyRead MoreCorporate Social Responsibility ( Csr )1314 Words   |  6 PagesSocial responsibility has become a primal interest to the humankind for the past two decades. In the earlier days, the firms and organizations concentrated only on the financial part of the business and ignored the ethical, social and moral sectors. But in the recent times, the businesses are getting a grip of the significance of the social, ecological and environmental effects on their success. This has resulted in the emerging interactions between organizations and social segments thus giving riseRead MoreCorporate Social Responsibility ( Csr )1173 Words   |  5 Pages Corporate Social Responsibility (CSR) is highly important to Millennials. If a company is lacking a CSR plan, now it a good time to start one. Millennials are looking for ways in making a positive impact on the world and are expecting the same from companies. They are looking for companies that contribute to the betterment of communities and the environment. Millennials put great value in supporting such brands, companies and organizations that share these values. Companies without a CSR in placeRead MoreCorporate Social Responsibility : Csr979 Words   |  4 PagesThe notion of Corporate Social Responsibility is a phenomenon globally known for many years. 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Book Summary Essay Research Paper Man Against free essay sample

Book Summary Essay, Research Paper Man Against Darkness W.T. Stace Man Against Darkness is an essay written by W.T. Stace. He presents the philosophical background for the experiential stance of the modern universe. He tries to explicate why faith no longer plays an of import portion in the modern universe and what causes people to lose religion in faith. He begins his essay by explicating the point of view of the Catholic bishops of America and compared it to the thought of Jean-Paul Sarte, the Gallic existential philosopher philosopher. The bishops believe that the helter-skelter province of the modern universe is due to adult male s loss of religion, and the forsaking of God and faith. W.T. Stace does non believe in faith at all, yet he wholly agrees with the bishop s statement. Jean-Paul Sarte is an atheist and his position besides supports the statement of the bishops. We will write a custom essay sample on Book Summary Essay Research Paper Man Against or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Jean-Paul Sarte explains that, in the early yearss work forces depended on God as the beginning of moral ideals. Now, work forces understand that the universe is non ruled by religious forces, but instead by unseeable forces. Therefore ; our ethical motives must come from our head, and we are the 1 who decides what is right and what is incorrect. Stace, so subsequently goes on to explicate Mr. Betrand Russel s thought, which was different from both the bishops and Jean-Paul Sarte. Mr. Russel believes the faith has done more injuries than good and the disappearing of faith will be a approval to human being. Mr. Russel s thought is the same as that of M. Sarte. He stresses that adult male is entirely and friendless in the universe. Mr. Russel besides notes that scientific discipline produced such state of affairs. It is scientific discipline that made people lose religion in faith. Stace explains that scientists do non interested in inquiries such as is there god? Or what s the significance of life? They merely interested in understanding the procedures instead than the intents. They merely ask inquiries that begin with how but non why. Along with the ruin of the spiritual vision there went the ruin of moral rules and values. Ethical motives are human innovations. It is us who decide what s right and incorrect. It s a affair of sentiment. Morality is unsafe and it leads to chaos in society. Philosophers who see the danger attempt to give ethical motives a new foundation that does non affect spiritual thought. Stace references that philosophers may be able to make up ones mind what are good and bad, but the great multitudes of people may non be able to make so and the consequence will be catastrophe. Some people suggested replacing old faith with a new one, but Stace predicts that it will neglect. Why? Because work forces have lost the belief hence ; it can non be revived. Some proposed that we should turn to science itself, or the scientific spirit, for our redemption. Another inquiry that came up in the essay is can the whole civilisation live without faith? W.T. Stace explains that it is possible for educated work forces, philosophers, scientists, intellectuals, to populate their moral lives without faith, but he does non believe that the whole civilisation including the uneducated can make so. W.T. Stace sums up his chief thought in the decision of the essay. He states that work forces in the early clip are violent and as clip passed by the development of human civilisation made morality connect with faith. If modern adult male live without faith, they will drop back into the early stage, when work forces were violent and barbarous. After reading this essay, I have gain an apprehension of how of import faith is. I believe that faith have shaped up my ethical motives. I agree with Stace on many parts in the essay. I agree that we can non replace old faith with a new one, because one time work forces lose religion about something, they will non be able to travel back and believe in it once more. I do non hold that work forces lose religion in faith because of the scientific revolution. I believe that work forces are smart plenty to be able to understand nature without affecting the inquiry with God. When I was immature, I asked my female parent why does it rain and she answered that it is because God is shouting. I knew that it wasn t true. I didn t know what is rain, but I do cognize that it is non because God is shouting. I think that people are losing religion in faith because faith is non pure any longer. For illustration, many monastics are ravishing misss and got off with it because they have money to pay th e constabulary. The money came from us who devoted ourselves to religion because we genuinely think that faith is pure. I stopped believing in faith long clip ago and it s non because of scientific revolution. I lose my religion in faith because I think that I make my ain fate and there s no 1 in the sky to assist me populate my life. I choose what I want to be and where I want to travel and everything is based on my determinations. Whenever I fell, I couldn t see any manus making down from the sky to assist me. I solve my ain jobs and I can merely depend on me. That s why I do non believe in faith.

IKEA study case Essay Example

IKEA study case Essay What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 5 3Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s vision statement (in Figure C of the case) describes how the company seeks to build a â€Å"partnership† with its customers. What do you think of this vision statement? 4The fact that IKEA plans to have fifty stores in operation in the USA by 2013 is an indication of how optimistic the company is about the viability of its value proposition in this country. Do you think IKEA is being overly optimistic in its growth plans? How would you improve IKEA’s value proposition to make it even more attractive to American consumers? 7 5To achieve the kind of growth IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product range — are there limitations to t he matrix approach? Should the company expand its product lineup to include a greater number of styles and price points? In what other ways should the company consider changing its product lineup? 8 6If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in ten years? 9 7Industry observers have suggested that IKEA should open up smaller, satellite stores across the United States ( e. g. in shopping malls, strip malls, etc. ) By offering a limited range of IKEA products, these â€Å"IKEA Lite† shops would presumably give consumers who do not otherwise have access to a full size IKEA the opportunity to experience the brand. We will write a custom essay sample on IKEA study case specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on IKEA study case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on IKEA study case specifically for you FOR ONLY $16.38 $13.9/page Hire Writer In addition, consumers who do live near a full size IKEA would be able to use these mini outlets to make minor purchases (e. g. purchase a set of mugs as opposed to an entire living room set). Do you agree with this idea? Why or why not? 9 What factors account for the success of IKEA? There are several factors for the success of IKEA. Firstly, IKEA is known for its product differentiation and cost leadership. Although they have high sales revenues they do not become less sensible for cost-cutting which means that they try to save costs in as many areas as possible. Costs are kept under control starting at the design level of the value-added chain, by packing items compactly in flat standardized emblazes and stacking as much as possible to reduce storage space during and after distribution in the logistics process. Besides, employees are constantly reminded to save energy by turning of the light or computers if they are not being used. Additionally, since the furniture comes unassembled, people have to build up their furniture on their own at home but therefore pay way less money than at other retailers. Therefore they especially reach price-conscious customers. This actually means that they are operating in a niche market because normally Scandinavian furniture stands for high quality and therefore high prices, but they achieved to combine simplicity, design and space – and of course low prices. Secondly, IKEA’s store concept distinguishes itself from other furniture retailers. Its stores are self-service and feature special amenities such as a childcare center, Swedish cafes and often also stores where you can buy typical Swedish food. Therefore the shopping experience itself is very appealing to customers. Besides, although the IKEA stores are huge, the store layouts are carefully designed. There is always a light and bright atmosphere and the model bathrooms, living rooms, etc. are decorated in a cheerful and tasteful way. Moreover, it seems that the working atmosphere for employees is very personal and close since they all call each other by their first name, no matter which hierarchic position the person holds. What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? For us the product strategy including the matrix approach sounds very simple but convincing. By analyzing consumer’s trends first, they focus on their customer’s needs and wishes which always should be top priority. Then, by setting a price with the help of â€Å"the matrix†, which consists of three price ranges and four different styles, products developer cannot only compare their product easily to their competitor’s but also seek new opportunities. Due to the fact that every product category has its own matrix those can be used to identify gaps in the product line-up and therefore product managers can become aware of new market opportunities. Also, by always setting the price 30 or 50% lower than the competitors they are very attractive for people who do not have a lot of money or who are not willing to spend huge amounts on furniture and home decoration. Since IKEA has over 1,800 suppliers to choose from, they are able to balance cost-efficient labor with the company’s product quality standards. Sometimes different product components are also produced in different countries and the customer can decide at the end which one he wants (e. g. different colors of cushions, etc. ). In addition, it is very smart to use high-quality material for the more visible furniture surfaces and lower quality material for less visible and stressed parts. Besides, it is a smart idea to force its designers to pitch their ideas against each other: By doing this they have a higher variety to choose from and might end up with something more fashionable and special than if the design department had only presented one idea. We believe that the product strategy and range works very cost-efficiently and also allows achieving a higher penetration in the market. Since IKEA offers a huge variety, the probability is higher that everyone finds something he or she likes. Also it distinguishes them from other retailers who are not able to offer such a big product range because they have higher costs producing and providing them. Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s vision statement (in Figure C of the case) describes how the company seeks to build a â€Å"partnership† with its customers. What do you think of this vision statement? There are two main downsides to shopping at IKEA: quality, service and missing customization. Since IKEA uses also low-quality material in order to set a low price, it often happens that the furniture only lasts for a few years and that especially while moving flats products can easily break. Secondly, the lack of service when it comes to home delivery or construction f the furniture purchased, is a downside as well. Customer need a big car, be able to understand the construction manual as well as having all the tools at home. Also, IKEA stores are often a little further outside the city so customer need to be willing to drive maybe one hour to get to the store. Although customers know that this is the concept of IKEA they might nevertheless feel overstrained to build up the furniture or do not po ssess cars big enough to bring their purchased items home. Last but not least, the product range nearly allows no personalization or customization. IKEA products are for the mass market and therefore are not able to fulfill everybody’s wished especially not for richer people who look for luxury or more unique goods. In IKEA’s mission statement they explain how they want to be partners with their customers. IKEA’s mission is to create a better everyday life by offering beautiful and durable furniture at low prices so that also people with smaller wallets are able to improve their homes. IKEA’s part in this partnership is to finding simple solutions, scrimping and saving in every direction – except when it comes to ideas. Also, their designers work with manufacturers to find smart ways to make furniture using existing production processes. Then their buyers look all over the world to find the best suppliers with the most suitable raw materials. After that, they buy in a bulk so that they get the best deals and the customers the best prices. The customer’s part now is to go to the store, pick out the furniture and then pick it up at the self-service warehouse. After that they have to get them home themselves and assemble them on their own. Since this service is not done by IKEA, they do not charge for it and the logical consequence is that IKEA and customer save money together. We think that the mission statement fits perfectly to IKEA’s core concept and core competency. If customers want to pay a low price for more or less quality and fashionable furniture they must be willing to do something for this in exchange. In this case they have to bring their products home and assemble them themselves. The success of IKEA shows that many people are willing to do that in order to pay less than at other furniture retailers. The fact that IKEA plans to have fifty stores in operation in the USA by 2013 is an indication of how optimistic the company is about the viability of its value proposition in this country. Do you think IKEA is being overly optimistic in its growth plans? How would you improve IKEA’s value proposition to make it even more attractive to American consumers? In our opinion this was not an overly optimistic goal. The past growing trend indicated that there was a high potential in the US furniture market. Since IKEA does not only have monster stores and great prices, it also created a niche. Furthermore, they analyzed two core problems in the US market and made adjustments: Firstly, they realized that Americans are very likely to stick with their furniture and home decoration for many years and more seeking for a lifetime product instead of something cheap that might only last for a few years. In order to convince Americans to change this habit and be more open for changing furniture more often, they started publishing commercials that were making fun of the American’s unwillingness to part with their furniture. These commercials were quite successful and maybe also lead to the increasing number of customers. Secondly, they saw that Scandinavian design was something for a small niche market and furthermore that only offering the same products that they had in Europe would not be successful. Consequently they made adjustments to the product range (e. g. bigger glasses) in order to meet the American’s expectations. These changes are important for creating a value proposition and can always be continued. By asking customers for feedback and also what changes they would like to see that are made they can extend their value preposition and reach more customers. These analyses and preparation were needed to set food in the US market. Since nowadays IKEA has 49 stores in the US (source: IKEA, â€Å"Welcome Inside†, 2011) they are very close to reaching their goal and also the USA is the second top selling country after Germany (11%). When it comes to improvements, IKEA could consider to offer furniture delivery and assembly service (the customer would have to pay for that service) to satisfy busy consumers or people that are unable to do the construction themselves. Furthermore, they could extend their product range with products that have a higher quality and therefore longer durability to satisfy quality-conscious consumer segments. To achieve the kind of growth IKEA is hoping for, should the company change its product strategy? If so, in what way(s)? What about its product range — are there limitations to the matrix approach? Should the company expand its product lineup to include a greater number of styles and price points? In what other ways should the company consider changing its product lineup? They should only change their product range when it comes to making adjustments in order to accommodate to American habits and standards. For example, to offer products that are bigger in size to fit in the American Homes. So far there are of course limitations to the matrix approach because it only offers three kinds of prices and four different styles and no â€Å"in-between-products† are possible. Nevertheless, in our opinion they should not change that because if they offer a greater number of prices and styles they will compete stronger with the high-end and low-end competitors. Although IKEA has reasonable prices they cannot and should not compete with low-end retailers such as Walmart, etc. because the margins would become lower. Also they do not have the service in order to compete with high-end stores. Therefore they should also stick with their four styles and not overwhelm the customers with all kinds of sub-styles etc. like those companies do. They state themselves that it is part of their philosophy not to have everything nor extreme or over-decorated items, but they have what helps to build a good home for a nice living. Nevertheless they offer many home products next to furniture, such as dinnerware, lamps, decoration, etc. Consequently shoppers can find everything they need in order to prepare a cozy home. All in all, we think IKEA should stick to their mission but obviously it makes sense to adjust a few features and details in order to appeal to American customers. The numbers these days show that IKEA was right to stick to their concept and therefore they achieved the growth they wanted. If you had to predict, what do you think IKEA’s value proposition and product lineup will look like in ten years? We believe that the value preposition and product line up will not undergo extreme changes. Since IKEA has a successful product strategy they do not need to change their core competency or create other competitive advantages. Obviously, in the upcoming years there will be new trends that IKEA has to implement in their product range and they also have to face the growing e-commerce market. This is why IKEA should start thinking about also selling their products online. This would also make it easier for customers since the delivery would be done by IKEA. Since this Harvard Case is from 2004 there have been some changes in the last years. In 2012 IKEA launched their first e-commerce site for the Russian market which experience high approval due to its combination of emotion, information and interaction. In this context interaction would mean for example that people can decorate and design their rooms online with a simulator that shows how each IKEA product would fit to different styles or living conditions. Industry observers have suggested that IKEA should open up smaller, satellite stores across the United States ( e. g. in shopping malls, strip malls, etc. By offering a limited range of IKEA products, these â€Å"IKEA Lite† shops would presumably give consumers who do not otherwise have access to a full size IKEA the opportunity to experience the brand. In addition, consumers who do live near a full size IKEA would be able to use these mini outlets to make minor purchases (e. g. purchase a set of mugs as opposed to an entire living room set). Do you agree with this idea? Why or why not? One the one hand it would be a good idea to start up satellite stores in location where access to nearest IKEA Superstore is more than an hour’s driving. A research into the areas demographics and spending habits could serve as an indicator whether a satellite store would be successful in the long term or not. Opening new IKEA satellite stores in smaller towns would also lead to higher brand awareness. This could serve as a way to advertize their global presence. Furthermore, an IKEA satellite store could carry smaller items which do not require much of the floor/ storage space but should include the virtual display and its detailed information so as to promote the IKEA brand. The smaller products could be displayed in a showcasing fashion to appeal the buyers. In addition they could show in smaller stores how the items there could be combined with bigger products (such as furniture) in order to inspire people and make them drive to the bigger stores to purchase the products. On the other hand, the unique shopping experience that usually is created in the big stores due to the carefully designed store-layouts, the Swedish’ restaurants and child care center would get lost. Customers who went for the first time to IKEA into a satellite store would get a complete different brand image than someone who goes to the flagship stores. Therefore IKEA’s unique points-of-difference would be lost. Furthermore, there is the threat that people would no longer connect IKEA with furniture but only with small home decoration products. This could lead to a decrease of sale in the bigger stores. Summarizing, we would therefore say that in order to install satellite stores there must be detailed analyses how big the demand would be and which customers would be likely to visit these stores – if they are familiar with the IKEA concept or if they are â€Å"newbies†. [ 1 ]. Cf. : http://www. e-commercefacts. com/news/2012/06/ikea-e-commerce-video/index. xml, seen on the 25. 11. 2012