Ikea Swot Analysis Essay
Ahere are certain tools that helps in developing an insight view of the company such as PESTLE/STEP analysis, SWOT, resourced based view and value chain, which helps in giving the information that reveals the current position of the firm in the market. Further, these tools have been used to analyse Goldman Sachs. “A company which is a leading global financial services firm providing investment banking, securities and investment management services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.
Founded in 1869, the firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centres around the world” (www2. goldmansachs. com, 2010). Further, this report it will give recommendations that may help Goldman Sachs to gain competitive edge amongst its rivals in the market. STEP analysis STEP analysis is one of the important tools which can be used to scan the external macro environment in which a company is operating.
It provides a framework to monitor and evaluate the forces which affect the organization (Morrison, 2006). Further, it helps us to identify risks, which is not under control of an organization. Further, the external influences are categorised under 6 headings; political, economic, social, technological, legal and environmental; abbreviated as STEP (Johnson and Scholes, 2005). Based on the above discussion, STEP analysis has been chosen to analyse the macro-environment to diagnose the external influences that are affecting Goldman Sachs.
Social factors: Social factors which affected a firm involve the attitudes, beliefs, opinions of a person in the external environment of the firm, as developed from cultural, demographic, educational and ethnics conditioning (Pierce and Robinson, 2005). Further growing consumer assertiveness is also affecting external environment of the firm. Technological factors: Technology, which is widely recognised by various literatures, is on strategic management (John, L.
Thompson and Frank Martin, 2005). However, as part of the organization and the industry part of the model, it has been used for the creation of competitive advantage, and therefore the technology, external to the industry, could also be captured and used. On the other hand, it can be influenced again by government support and encouragement. However, technological breakthroughs may create new industries, and therefore it might have a threat for existing organizations.
As a result, their products or services might be rendered redundant. However, new technology may provide a useful input for both manufacturing and service industries, but in turn its purchase will require funding and possibly employee training before it can be used. Economical: There include factors affecting Goldman Sachs from competition, global recession, increase in taxes etc. Consumer spending power is very critical for the prosperity of any industry. Economic downturns cause problems for industries.
Factors such as rates of economic growth, unemployment and interest rates, which affected the spending power of consumers and businesses, also have a major impact on the nature of competition in an industry, for example, federal funds measure monetary policy, but Goldman Sachs Financial Conditions Index has differences of monetary policy whatever came from another popular measurement. The real economy has been impacted indirectly by the federal funds rate even if it impacts on financial variable.
Not only does Goldman Sachs Financial Conditions Index focus the action of feds, but also financial markets that may transmit these actions to reshape the real economy in the United States of America (www2. goldmansachs. com, 2009). Political: This is political factors which affect a business can be the new rules and regulations imposed by the government toward that particular business environment. Also, it can be affected by international bodies such as European commission, the United Nations and the world trade organization (Haberber and Reiple, 2008).
For example, the political condition is stable for Goldman Sachs in one of the growing economies i. e. the Indian economy, but there are fears of hung parliament due to lack of clear majority in parliament creating fears of wrong investing in the minds of investors thereby reducing capital. Such kind of factors can influence Goldman Sachs depending upon the context in which it is operational. SWOT analysis Organizational capabilities are formed when a firm utilizes its resources efficiently and effectively.
For example Goldman Sachs would be able to deliver outstanding customer services by helping the firms to reduce its debt load. This and other factors help to determine the core competence of Goldman Sachs. Furthermore, there are tools in strategic management that helps in analysing the core competencies of a firm. For example one of the tools that help in analysing the current economic position of firm is SWOT analysis. Further, it consists of specifying the project and helps to spot the internal and external factors that are favourable and unfavourable to achieving that objective.
The strengths and weaknesses usually can be arisen from within an organisation, and the opportunities and threats from external sources could be seen (Pettinger, 2004). Based on the above discussion SWOT analysis model has been used to determine the core competencies of Goldman Sachs. Goldman Sachs SWOT Analysis: Strengths •Investment banking operations are effective enough to gain a powerful grip in the market. •Goldman Sachs are the leader in merger and acquisitions advisory services •Brand equity is also very strong M&A, and corporate financial services could be done through technical expertise as evidenced by the company’s history and pioneering in research. Weaknesses •It is bound for employee, and therefore they can cut during economic downturn •The company is not diverse enough. Opportunities •To look for emerging markets such as India and China •In the United States of America, companies are going to be privatized day by day historically. Threats •To increase volatility in financial markets could be potentially impacted on earnings. •To slowdown in worldwide M causing bad credit conditions and economic turmoil could be a bigger threat.
IKEA: SWOT Analysis Essay
This resource can be used for general classwork prep or acquisition accomplishments for probe. It is a good simple exercising in conveying the assorted nomenclatures together in understanding what it means and how it can be used in context. This allows the students to convey out more in treatment and understand that the subjects covered in Business Studies are non insular.
The result will be by distinction.First Activity:Using the instance survey and any other resources. specify the undermentioned words: Multinational Company ; Primary sector ; Secondary sector ; Tertiary sector ; occupation production ; batch production ; flow production ; thin production ; merchandise scope ; merchandise mix ; variegation ; new merchandise development ; franchisor ; franchisee ; market portion ; consumer ; employees ; stakeholders ; channel of distribution ; sourcing ; pricing scheme ; market section ; mark market ; merchandise orientated ; market orientated ; service sector ; retail sector ; private costs ; private benefits ; societal costs ; societal benefits ; external influences ; sustainability ; environment ;PR ; corporate societal duty ; communicating ; green marks ; C footmark ; scheme ; aims ; tactics ; mission statement ; vision ; SWOT analysis ; trade name ; organizational construction ; thin production ; quality circles ; quality confidence ; quality control ; kanban ; kaizen ; location ; cardinal public presentation indexs ; benchmarking ; recyclin g ; renewable stuffs ; economic systems of graduated table ; monetary value snap ; green merchandises ; landfill ; statute law ; IWAY codification ; profitableness ; net net income ; gross net income ; ROCE ; USP ; distinction ; societal tendencies ; competition ; disposable income ; staff preparation ; barriers to entry ; chance cost.Second ActivityOnce you have completed the definitions link the undermentioned words together to organize a paragraph.
The words do non needfully hold to be in any order but must be in context of IKEA.Questions1. W chapeau does SWOT analysis mean?2. W hy is it of import for an administration like IKEA to make a SWOT analysis?3.
W Ho should transport out the SWOT analysis in IKEA?4. How has IKEA managed to accomplish such rapid growing?5. On mean how many clients have been to each of the IKEA shops?6. W hat was the mean spend per client in each shop?7.
W hat are IKEA s strengths?8. W hat are IKEA s failings?9. W hat are IKEA s chances?10. W hat are IKEA s menaces?11.
How has IKEA put up the barriers to entry for smaller concerns?12. How has IKEA focused on sustainability?Activities· Using the instance survey and the IKEA online catalogue. happen 10 merchandises that are environmentally friendly.· Using the assorted theory from text editions.
Times100 instance survey on IKEA and other beginnings. bring forth a alteration / larning usher on SWOT analysis.· Find 10 interesting facts about IKEA.Other resources· MP3 download of the full instance survey· Summary of the instance study 500 words· Brief of the instance survey f or lower ability students· Interactive online quizzes· Revision theory