Strategic Management

Prelim Exam:

Task Performance (Sustainability & Corporate Governance)

BSTM 3B

Submitted by:

Serrano, Elisea Judel

Submitted to:

MS. Estores, Kristin Iris

 IKEA

The business idea is "to offer a wide range of well-designed, functional home
furnishing products at prices so low that as many people as possible will be able to
afford them." Since The IKEA company has built a loyal customer base around the
values of ethics, integrity, passion, and quality, every box of tea has a personal
message from Fernando about his lifelong commitment to tea. KEA is one of the
world's most successful companies.

This strategy provides the organization with a competitive edge and a clear vision of
what it wants to achieve, all while being led by strong values. Here are a few of Ikea's
key strengths that have propelled the brand to the forefront of the global market.

 Pricing,
 Sales outlets,
 Personal visits,
 Sustainability,
 Staff.

Marketing essentially delivers value to the customer most efficiently and effectively
possible, so they will want to take action.

Triple Bottom line ( TBL) IKEA Company

 The economic pillar

Organizations are now engaging in attempts to build an IKEA sustainability

strategy to make environmental reforms and safeguard the people who come into
touch with their business. In this context, the "Triple Bottom Line" plays a vital role in
inspiring corporate executives to go beyond the ideas of profitability. Typically,
businesses stress their image primarily from the perspectives of financial worth,
economic profitability, and revenues.

 The Social Pillar

Despite IKEA's concerns, the "People and Planet Positive Philosophy"

represents the company's underlying sustainability strategy. Although experts
frequently criticize IKEA's "People and Planet Positive strategy," it was evident that
this strategy has been an engine of creativity and transformation for IKEA. IKEA
focuses on taking the lead in improving the lives of the communities and individuals
who its company directly touches.
 The environmental Pillar

IKEA promises to utilize more sustainable items, such as "better cotton," to

help the environment. In their "People and Planet Positive Strategy," IKEA says that
they would utilize environmental resources more organically. The firm also promises
to encourage its peer group to use resources in a way that is sustainable for the
earth.

Corporate Governance of IKEA Company

The IKEA idea first appeared in 1943 in Sweden. Ingvar Kamprad, the
organization's founder, was just 17 years old when he founded it. The firm has been
in operation for over six decades. Today, the firm, which began in a tiny hamlet in
Sweden, has extended to 36 countries worldwide and has established a brand image
as one of the world's leading furniture sellers. As a result, corporations will be able
to fulfill their societal responsibilities. It is in the best interests of the company to
avoid societal harm. Instead of permitting widespread unemployment to cause
societal discontent, which would undermine economic interests, firms may serve as
sources of employment for eligible youngsters.This might, at times, lead to
disastrous consequences. As in most situations, there is no firm right thinking or
wrong thinking. Businesses getting involved in social activities have their strengths
and weaknesses.