I have chosen IKEA as the subject of my business studies report, they are a worldwide known Swedish furniture store. The above diagram, shows the layout the of IKEA family tree. Task 1) All businesses have aims and objectives that they wish to achieve. An aim demonstrates the long term intentions of the business. Objectives are measurable goals that the business will try and achieve in the short to medium term. If the business is to achieve their long term aims they must meet their objectives. A mission statement will often be used to put the business’ aims to words.
This will make the aims easier for the workforce to understand. The aim of a business may simply be to survive the first year of trading, make enough money to provide an income for the owner or to supply a service to the local community. The aims will be decided by the owners or managers and they will vary from business to business. Below are some examples of some business and moral aims that a business like ikea may choose to adopt: making a profit; this can be seen here in the steady increase of income the IKEA Group in figures
Sales for the IKEA Group for the financial year 2004 (1 September 2004 – 31 August 2005) totalled 14. 8 billion euro. UK is ikea’s second biggest market after Germany, accounting for 11. 5% of the companys i?? 5Bn turnover, so to increase their profits Ikea have planned a huge expanion in the UK. “Swedish furniture chain Ikea has announced a huge expansion in the UK over the next 10 years. It says it will build 20 new stores, creating 10,000 jobs. The privately held company, the world’s largest furniture retailer, says it is considering sites in Manchester, Coventry, Glasgow, south Wales, the south coast and London.
‘Information from the Ikea site’ The plan is for eight of the new stores to be built in the next five years at a cost of i?? 300m, with the others to follow. Ikea predicts that the increased numbers of stores could double sales and bring its prices down by about 20%. ” (BBC news archive) Furthermore Ikea pinpoints its main key to success on the fact that it flat-packs its products and in most cases requires assembly by their customers, reducing costs for Ikea and customers. And profits for Ikea continue to increase