Starting a Business

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Chapter 17 - Operations Management: Putting It All Together

Starting a business can be the key to financial independence, or the road to failure. Keeping a business up and running is a hard thing to do, statistics for starting businesses are very harsh, with some 90 percent of new businesses eventually closing their doors forever A example of a successful business would be IKEA and a example of a failing business would be Blockbuster.

The IKEA business idea is more relevant than ever. People around the world are more value conscious and appreciate well designed and functional home furniture at affordable prices which IKEA specializes in. Profits were reinvested in new and existing stores, more than 2,000 inspiring products, new and better services, and in e-commerce. IKEA strives to be ‘The Life Improvement Store,’ and since its beginning in 1943 in Sweden they have offered quality furniture at low prices so people can afford them. There are currently more than 320 IKEA stores in 38 countries, including 38 stores in the U.S. IKEA, the world’s leading home furniture company, also makes great efforts in to the community with benefiting children and the environment. IKEA invested in renewable energy, IKEA produces renewable energy equal to a third of its total energy consumption. Ikea’s Group released a new strategy, People & Planet Positive. The strategy is an combined part of the business and outlines new goals and actions for delivery up to 2020. IKEA has committed to invest $1.9 billion in renewable energy. US comparable store sales grew by 8% and total sales grew by 11%. IKEA continued to lower prices on some of its best-selling items, including a 22% reduction. These price reductions were part of IKEA’s continued effort to make products available to everyone, while not making it a lesser quality. Another way IKEA remained strong has been the new services, they expanded their offering of services to meet customer needs. IKEA now offers...