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    IKEA Objectives and Polices

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    Michael S. Habib
    The document outlines objectives and supporting policies for various departments within IKEA. The overall objectives for IKEA include increasing sales by 15% within a year, obtaining 10,000 first time visitors, and achieving a 7% return rate for new consumers. Departments establish objectives to increase revenues and production levels through policies like increasing store hours, overtime hours, attendance awards, and adjusting inventory and marketing strategies.

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    © All Rights Reserved
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    IKEA Objectives and Polices

    Uploaded by

    Michael S. Habib
    1K views13 pages
    The document outlines objectives and supporting policies for various departments within IKEA. The overall objectives for IKEA include increasing sales by 15% within a year, obtaining 10,000 first time visitors, and achieving a 7% return rate for new consumers. Departments establish objectives to increase revenues and production levels through policies like increasing store hours, overtime hours, attendance awards, and adjusting inventory and marketing strategies.

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    The document outlines objectives and supporting policies for various departments within IKEA. The overall objectives for IKEA include increasing sales by 15% within a year, obtaining 10,000 first time visitors, and achieving a 7% return rate for new consumers. Departments establish objectives to increase revenues and production levels through policies like increasing store hours, overtime hours, attendance awards, and adjusting inventory and marketing strategies.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views13 pages

    IKEA Objectives and Polices

    Uploaded by

    Michael S. Habib
    The document outlines objectives and supporting policies for various departments within IKEA. The overall objectives for IKEA include increasing sales by 15% within a year, obtaining 10,000 first time visitors, and achieving a 7% return rate for new consumers. Departments establish objectives to increase revenues and production levels through policies like increasing store hours, overtime hours, attendance awards, and adjusting inventory and marketing strategies.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 13

    IKEA Objectives

    Increase Sales by 15 % within one year of implementation

    Obtain 10,000first time visitors to IKEA showroom


    within one year of implementation

    Achieve a 7 % return rate with newly acquired


    consumers

    Supporting Polices
    1. All stores will be open from 8 a.m. to 8 p.m. Monday through
    Saturday .except stores in Middle east will be open from 9 a.m.
    to 10 a.m. ( increase retails sales)
    2. All stores must submit a Monthly control Data Report ( reduce
    expense to sales ratios)
    3. All stores must support IKEA advertising by contributing 5% of
    their total monthly revenues for this purpose ( allowance IKEA
    to establish a national reputation)
    4. All stores must adhere to the uniform pricing guidelines set
    forth in the IKEA handbook ( assure customers that IKEA offers
    a consistent product in terms of price and quality in all stores)

    Living rooms and dining Divisional


    Objective:
    Increase the divisions revenues from $10 million in
    2014 to $15 million in 2015

    Production department objectives


    Increase production from 15,000 units to 22,000 units
    in 2015

    Supporting policies:
    1. Beginning of Jan 2014, employees will have the
    option of working up to 20 hours of overtime per

    week (this could minimize the need to hire


    additional employees)
    2. Beginning of Jan 2014,perfect attendance awards
    in the amount of $ 100 will be given to all
    employees who do not miss a workday in a given
    year ( decreases absenteeism and increase
    productivity)

    R&D dept. Objectives


    Develop 15 to 20 new products in 2015

    Supporting polices:
    All dept. Employee will have to attend Training courses
    in creating inspiring ideas and designs
    Increase incentives to R& D department by 5%
    All departments employees will have option to increase
    extra time to 25 hours per week

    Financial dept. Objectives


    Decrease operating expenses by 15 %

    Supportive polices
    Beginning in Jan 2014, new equipment must be
    leased rather than purchased (reduces tax
    liabilities)

    Marketing and sales dept. Objectives


    Increase effectiveness of marketing Ads and
    internet Marketing by 15 %

    increase Sales by 15 % in 2015

    Supporting polices
    Marketers should created inspiring ideas of
    Ads and internet marketing on IKEA and social
    media websites
    Marketers must concern and increase use of
    Face book and Twitters in order to attract
    customer attention

    Salespersons will have to increase sales by 15


    to 20 % through using offers and promotions
    to customers

    Bedrooms Divisional Objective:


    Increase the divisions revenues from $7 million in 2014
    to $10 million in 2015

    Supporting polices:
    1.each one of this divisions sales persons must file a
    weekly activity report that includes the no. of calls
    made , the no. of miles traveled , the no. of units
    sold , the dollar volume sold, and the no. of new
    accounts opened, ( this policy could ensure that
    salespersons do not place too great emphasis in
    certain areas)

    2.Beginning in Jan 2014, this division will return to its


    employees 5 % of its gross revenues in the form of
    a feast bonus ( this could increase employee
    productivity)
    3.Beginning in Jan 2014, inventory levels carried in
    warehouses will be decreased by 30% in
    accordance with a just-in-time manufacturing
    approach( this could reduce production expenses
    and thus free funds for increased marketing
    efforts)

    Production department objectives


    Increase production from 13,000 units to 18,000 units
    in 2015

    Supporting policies:
    3. Beginning of Jan 2014, employees will have the
    option of working up to 20 hours of overtime per
    week (this could minimize the need to hire
    additional employees)
    4. Beginning of Jan 2014,perfect attendance awards
    in the amount of $ 100 will be given to all
    employees who do not miss a workday in a given
    year ( decreases absenteeism and increase
    productivity)

    R&D dept. Objectives


    Develop 10 to 15 new products in 2015

    Supporting polices:
    All dept. Employee will have to attend Training courses
    in creating inspiring ideas and designs
    Increase incentives to R& D department by 5%
    All departments employees will have option to increase
    extra time to 25 hours per week

    Financial dept. Objectives


    Decrease operating expenses by 20 %

    Supporting polices
    Beginning in Jan 2014, new equipment must be
    leased rather than purchased (reduces tax
    liabilities)

    Marketing and sales dept. Objectives


    Increase effectiveness of marketing Ads and
    internet Marketing by 15 %, increase Sales by 15 %
    in 2015

    Supportive polices
    marketers should created inspiring ideas of Ads
    and internet marketing on IKEA and social media
    websites

    Marketers must concern and increase use of Face


    book and Twitters in order to attract customer
    attention

    Salespersons will have to increase sales by 15 to


    20 % through using offers and promotions to
    customers

    Kitchen Divisional Objective:


    Increase the divisions revenues from $8 million in 2014
    to $12 million in 2015

    Supporting polices:
    each one of this divisions sales persons must
    file a weekly activity report that includes the
    no. of calls made , the no. of miles traveled ,
    the no. of units sold , the dollar volume sold,
    and the no. of new accounts opened, ( this
    policy could ensure that salespersons do not
    place too great emphasis in certain areas)

    this division will return to its employees 7 % of


    its gross revenues in the form of a feast
    bonus ( this could increase employee
    productivity)
    inventory levels carried in warehouses will be
    decreased by 25% in accordance with a justin-time manufacturing approach( this could
    reduce production expenses and thus free
    funds for increased marketing efforts)

    Production department objectives


    Increase production from 10,000 units to 14,000 units
    in 2015

    Supporting policies:
    5. Beginning of Jan 2014, employees will have the
    option of working up to 20 hours of overtime per
    week (this could minimize the need to hire
    additional employees)
    6. Beginning of Jan 2014,perfect attendance awards
    in the amount of $ 100 will be given to all
    employees who do not miss a workday in a given

    year ( decreases absenteeism and increase


    productivity)

    R&D department Objectives


    Develop 10 to 13 new products in 2015

    Supporting polices:
    All dept. Employee will have to attend Training courses
    in creating inspiring ideas and designs
    Increase incentives to R& D department by 5%
    All departments employees will have option to increase
    extra time to 25 hours per week

    Financial dept. Objectives


    Decrease operating expenses by 13 %

    Supportive polices
    Beginning in Jan 2014, new equipment must be
    leased rather than purchased (reduces tax
    liabilities)

    Marketing and sales dept. Objectives


    Increase effectiveness of marketing Ads and
    internet Marketing by 12 %, increase Sales by 13 %
    in 2015

    Supportive polices
    Beginning in Jan 2014, marketers should created
    inspiring ideas of Ads and internet marketing on
    IKEA and social media websites

    Marketers must concern and increase use of Face


    book and Twitters in order to attract customer
    attention
    Salespersons will have to increase sales by 10 to
    15 % through using offers and promotions to
    customers

    Childrens IKEA Divisional Objective


    Increase the divisions revenues from $7 million in 2014
    to $10 million in 2015

    Supporting polices:
    each one of this divisions sales persons must file a
    weekly activity report that includes the no. of calls
    made , the no. of miles traveled , the no. of units
    sold , the dollar volume sold, and the no. of new
    accounts opened, ( this policy could ensure that
    salespersons do not place too great emphasis in
    certain areas)
    ,this division will return to its employees 5 % of its
    gross revenues in the form of a feast bonus ( this
    could increase employee productivity)
    inventory levels carried in warehouses will be
    decreased by 30% in accordance with a just-intime manufacturing approach( this could reduce

    production expenses and thus free funds for


    increased marketing efforts)

    Production department objectives


    Increase production from 11,000 units to 15,000 units
    in 2015

    Supporting policies:
    7. Beginning of Jan 2014, employees will have the
    option of working up to 20 hours of overtime per
    week (this could minimize the need to hire
    additional employees)
    8. Beginning of Jan 2014,perfect attendance awards
    in the amount of $ 100 will be given to all
    employees who do not miss a workday in a given
    year ( decreases absenteeism and increase
    productivity)

    R&D dept. Objectives


    Develop 4 to 6 new products in 2015

    Supporting polices:
    All dept. Employee will have to attend Training courses
    in creating inspiring ideas and designs
    Increase incentives to R& D department by 5%
    All departments employees will have option to increase
    extra time to 25 hours per week

    Financial dept. Objectives


    Decrease operating expenses by 20 %

    Supportive polices
    Beginning in Jan 2014, new equipment must be
    leased rather than purchased (reduces tax
    liabilities)

    Marketing and sales dept. Objectives


    Increase effectiveness of marketing Ads and
    internet Marketing by 15 %, increase Sales by 15 %
    in 2015

    Supportive polices
    Beginning in Jan 2014, marketers should created
    inspiring ideas of Ads and internet marketing on
    IKEA and social media websites
    Marketers must concern and increase use of Face
    book and Twitters in order to attract customer
    attention
    Salespersons will have to increase sales by 15 to
    20 % through using offers and promotions to
    customers

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