Introduction:

IKEA is a multinational group of companies that designs and sells furniture appliances, home
accessories to its customers. In order to reach the goals human resources coworkers help IKEA
managers to train and develop skill of the other co-workers such as non managerial employee.
This is because to make sure they have enough skill. IKEA is the company who is going more
popular now days. It has grown rapidly .Since it was found in 1943. Today it is found as the
world’s largest furniture retailer, recognized for its Scandinavian style. IKEA is concerning
people and the environment. The IKEA vision is to create a better everyday life for many people
(IKEA, 2009). Business is full of risk and uncertainty. Business is the place where different idea,
vision merged within organization and implemented as a strategy. Each and every business
organization it is run through its strategy. Managers need to ensure that employees have the
necessary skills to perform current and future jobs with the help of human resource
management .The organization can achieve the organizational goal systematically and
scientifically. This report aims to how business organization affect from external and internal
environment. Business organization runs through society so it should focus on customer
preference and satisfaction. The external factor includes political, legal, social, cultural,
technological factor and so on likewise, internal factor consist of organizational design.
Organizational mission organizational strategy etc. Among them, this report includes different
factor affect the business organization. IKEA has unique management decision system which
helps them to maximize profit. Over decision making is harmful not even only in organization
but also in real life. This report aims to how business organization affect from both internal and
external environment. Business organization runs through society so it should focus on
customer preference and satisfaction. The market identification is very important for each
organization to achieve its objective goal. To run the business effectively the organization should
also focus on HRM, finance, accounting, marketing, public affair technology management,
research and development.

Problem definition:

When customers go to visit IKEA stores they find quality customer service with variety products
which are presented attractively. Although it is a popular company .It has some weakness and is
facing various problem such as labor turnover rate, decreasing quality, congested store, issue of
worker etc, Among them this report focus on labor turnover rate( Taft, 1978).

Labor turnover rate: In IKEA, there is lack of fresh blood. IKEA is just hiring the same genre of
people which leads to inhibiting diversity and innovation to meet change in new market. By this
nature worker are not motivated towards their work. There should be proper training to the
employee of the organization which make their more confident to complete the task .Motivated
employee motivate to do task other wise there will be high labor turn over rate. Each and every
organization cannot be far away from the effect of PEST analysis. Business organization is going
complex day by day due to globalization. There is many competition in market so to maintain