Instructions
It is a group essay so my parts are:
Part 2. If the company already has a clear sustainability portfolio, analyse it according to the above criteria and suggest possible improvements for each.
Part 3 (word limit: 300)
Examine the possible advantages and difficulties in integrating your sustainability portfolio into the company’s strategy.
Part 2 is part of a bigger question I will put it here but remember i just need to answer this (If the company already has a clear sustainability portfolio, analyse it according to the above criteria and suggest possible improvements for each)
This is the full part 2 question.
PART 2.Based on Readings (Weeks 1 to 10), design a sustainability plan for that company (for example you can focus on clean technology, sustainability vision, pollution prevention, product stewardship, etc). While creating the plan remember to include aims, objectives, strategies, tactics and evaluation. If the company already has a clear sustainability portfolio, analyse it according to the above criteria and suggest possible improvements for each.
Essay
Sustainability Vision of IKEA
IKEA Company already has a clear sustainability portfolio. The paper will analyze the sustainability portfolio and various ways in which IKEA can improve its sustainability. The sustainability vision of IKEA is to improve the welfare of many people in the society. IKEA Group operates its activities within the limits of the planet. Such limitation enables IKEA to make a positive impact on workers, customers, suppliers and the planet. Consequently. IKEA has been successful in its operations. Dahlvig (2012, p.31) argues that IKEA understand that their customers want to live comfortably at home thus they make sustainable products. The products are well-designed, functional, good quality and cost friendly to the customers.
It is necessary for IKEA to make home furnishing raw materials, comprising of packaging, from recyclable, renewable or recycled materials (Timm et al., 2015, p. 22). Such activity will help to improve its sustainability portfolio. The move will ensure IKEA maintains a clean environment. IKEA understand that raw material extraction is related to social and environmental concern. Thus as a part of their sustainability portfolio, IKEA should support the development of sustainable activities that have complex and long supply chains.
IKEA should ensure that products that consume energy, such as white and light goods are more than 50 percent effective than products from other companies. Ireland et al. (2012, p. 109) states that IKEA’s products that consume water, such as dishwaters and washing machines should also be more than 50% than other products on the market. Also, IKEA should use multiple combinations of tactics in achieving their set objectives. IKEA ought to promote and develop products and solutions that are environmental friendly.
Advantages of the Sustainability Vision of IKEA
According to Schramm-Klein, (2013, p. 156), in incorporating the strategic plans to achieve sustainability vision, IKEA can produce diversified and quality product portfolio. The IKEA variety consists of 9,500 home furnishing products, appliances, small motor vehicles, and home accessories. Their materials and products are subject to wide-ranging analysis, and they work efficiently to stay ahead of well-being and safety ideals and principles. Dahlvig (2012, p.32) outline that Ikea want their customers to confidently and freely choose among all their products. IKEA commits its self to sustainable exercise and that they do not have to choose between sustainability, style, function or price. The quality products that IKEA produce have resulted to a positive brand image that improves its market awareness.
Ireland et al. (2012, p. 109) argues that sustainability vision has also led to the innovation of new ideas. Examples of those ideas include a substantial return program and firm follow-up routines. Customers have at least 30 days to return purchased products for a full reimbursement regardless of the reason for the return. Return program satisfies the ever-changing taste and preference of their customers. IKEA has introduced new Rigorous safety alarm procedures, Proactive risk assessment, and extensive testing that involves detecting and eliminating potential hazards.
Besides, IKEA has a sustainable sourcing of raw materials. They source their wood, cardboard and paper as a way of reducing their cost of production. Integrated supply chain has helped the company in achieving energy efficiency in all their activities. As a way of increasing their corporate social responsibility, IKEA always has the society with abundant information of their products and activities (Dawson and Mukoyama, 2013, p. 148).
Difficulties of the Sustainability Vision of IKEA
Competition has been a major challenge for IKEA. Walmart, Barn Furniture, Natuzzi, Sears, and Tesco are examples of some of IKEA’s competitors. Lamb et al. (2013, p. 691) argues that competition has been stiff in the industry. Most of their customers have an average income. Therefore, IKEA has struggled to produce standard products that their customers can afford.
The macro environment has also affected the sustainability of IKEA. Such factors include political, economic, environmental, technological, legal and social factors. Those factors directly influence IKEA Company.
As a conclusion, IKEA has used hybrid strategy to survive in the competitive market. Moreover, IKEA has attained differentiation gives its products a unique market position and high top of mind awareness.
Bibliography
Dahlvig, A. (2012). The IKEA Edge. New York: McGraw-Hill, pp. 31.
Dawson, J., and Mukoyama, M. (2013). Global Strategies in Retailing. Hoboken: Taylor and Francis, pp. 148-149.
Ireland, R., Hoskisson, R. and Hitt, M. (2012). Understanding business strategy. Mason, OH: South-Western Cengage Learning, pp. 109.
Lamb, C., Hair, J. and McDaniel, C. (2013). Marketing. Mason, OH: South-Western/Cengage Learning, pp. 691.
Schramm-Klein, H. (2013). European retail research. Wiesbaden: Springer Gabler, pp. 156.
Timm Knudsen, B., Christensen, D. and Blenker, P. (2015). Enterprising Initiatives in the Experience Economy. London: Routledge, pp. 22.
