ASSIGNMENT … FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Management and Operations (488)

Submission date Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Bui Thi Hong Nhung Student ID GBS200321

Class GBS0906 Assessor name Nguyen Kim Hao

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand
that making a false declaration is a form of malpractice.

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P4 P5 P6 M3 M4 D2
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grades decisions have been agreed at the assessment board.
 I. Introduction

II. Demonstrate an appreciation of the role leaders and managers play in the operations function of an
organization (L3).

1. Theory the operations and operations management.

2. Explain the key approaches to operations management and the role that leaders and managers play
(P4).
 3. Explain the importance and value of operations management in achieving business objectives (P5).

4. Evaluate how leaders and managers can improve efficiencies of operational management to
successfully meet business objectives (M3).

III. Demonstrate an understanding of the relationship between leadership and management in a

contemporary business environment (L4).

1. Assess the factors within the business environment that impact operational management and
decision-making by leaders and managers (P6).

2. Analyze how these different factors affect the business environment and wider community
(M4).

IV. Conclusion.

V. Reference.

I. Introduction:
 Name IKEA
Type Private

Founder Ingvar Kamprad

Headquarters Delft, Netherlands

Key people Jesper Brodin

Products furniture, homeware

Website https://www.ikea.com/

a multinational company which sells ready to assemble furniture and home accessories . According to the
economics records as at 2008 this is the world largest furniture retailer . ( Forbes , 2013 ) T IKEA has evolved
into the largest furniture retailer in the world with approximately 300 stores in 38 countries and revenues
topping $21.5 billion in 2009. Its top countries in terms of sales include Germany , 16 percent ; United States ,
11 percent ; France , 10 percent ; United Kingdom , 7 percent ; and Italy , 7 percent . ( Business week , 2005 ) .

II. Demonstrate an appreciation of the role leaders and managers play in the operations function of
an organization (L3):
1. Theories:

 Operations: are the activities that a business does to turn raw materials into finished goods or services,
sell them to customers, and profit.

 Operations management: is the design, management, and improvement of the systems that produce an
organization's goods or services. The majority of the financial and human resources of most
organizations are invested in activities related to producing products or providing services. Operations
management is essential for the success of the organization, according to the American Society of
Operations Managers (ASOM, 1881).

About IKEA:
IKEA is an organisation that produces furniture and some operations management decisions that are involved
with this organisation are purchasing wood and fabric, hiring and training workers, planning the location and
layout of the furniture factory, as well as purchasing cutting tools and other fabrication equipment. These
operations management decisions help the organisation to produce furniture, which is affordable, functional,
and attractive. The primary areas of operation management that are focused by the organisation are quality
management, supply chain management and cost (Carlsson, 2015).

2. The key approaches to operations management and the role that leaders and managers play (P4):

Approaches are used to better understand of operation management. These approaches aid in analyzing the
situation in the organization and taking appropriate actions. These approaches are explained in detail below:

Six sigma is a method that emphasizes quality. Every six sigma project in a
company follows a set of steps and has a set of financial goals, such
as increasing profits or lowering costs. Trending charts, potential
defect calculations, and other ratios are all used in the six sigma
process.

Example, Ford Vietnam Company started implementing 6 Sigma,

implementing process improvement in all areas of production and
business with 200 6 Sigma projects. As a result, Ford has saved $ 1.2
million and achieved a customer satisfaction index of over 90%
every year.

Lean production is a method for reducing waste in the manufacturing process. This
theory considers the use of resources for purposes other than
creating value for customers to be wasteful, and it seeks to
eliminate as much waste as possible.

Example, John Deere, many of their quality control mechanisms are

fully automated, allowing for the inspection of more parts in less
 time. These controls are also used to monitor the production of
each part of their products which means that they will never
produce more than is needed and expend valuable materials in the
process.

Queuing theory is a critical component of operations and a useful tool for the
operations manager. Waiting lines are a common situation—they
may.

Example, take the form of cars waiting for repair at a Midas

Muffler Shop, copying jobs waiting to be completed at a FedEx
office, or vacationers waiting to enter a ride at Disney.

 The role of leaders & managers:

 Role of leaders Role of managers

Making the selection of projects easier Have an understanding of how to get the
most out of their interns and employees in
Initial project charters are being written.
order to ensure the success of Six Sigma
Choosing the BBs and other resources along with business objectives
required for the project
Their responsibility will be to stimulate
removing roadblocks to the project's involvement, support and cultivate a desire
successful completion for success, and expedite decision-making.

Weekly meetings with the BBs to discuss Self-education in strategy and technique is
progress adequate to examine that method, findings,
and justification for solutions.

motivates individuals to take the initiative, define the product, service, or a group of
find problem-solving solutions, and improve related products and services The inputs and
their job by planning and testing tiny pieces, as well as the routes and procedures,
modifications. are used to define the product or service.

Managing manufacturing processes

When this process is approached as a team, Adjusting timeframes or schedules as

incremental increases in the value added to needed
each product result.
Choosing, buying, and purchasing materials

creating value to the customer by optimizing

Employees in your company's value stream
resources.
are identified by a Lean leader, who then
engages them in the process of change
toward that standard.
To be able to identify queuing delays. Assisting with the implementation of the
queueing system.
Recognizing where the delays are coming
from. Improve queue management by training
workers.
Resolving the processes that are causing the
delays.
 SIX SIGMA

IKEA uses six sigma as a tool for

quality control and LEAN OPERATIONS
improvement; in particular,
IKEA uses the DMAIC (define, The concept of lean operations
measure, analyze, improve and is applied in almost every
control) methodology as a product development process
practical implementation of the at IKEA. Product assembly and
six sigma approach to facilitate disassembly play an important QUEUING THEORY
the process product role in the effect of cost. Costs
can be reduced by controlling At a sample in IKEA’s Swedish
improvement (Chopra, 2009).
the breakdown and assembly of restaurant with many people
In addition, IKEA has worked waiting to be served. The
the product. Lean operations
variability of many people
on a number of six sigma are facilitated by the customer arising at the same time has
projects, a recent example self-service concept, in which provoked a rush hour and a
being "IKEA Group and SSD the customers themselves long queue. Nevertheless,
Global, Inc Lean Six Sigma participate in the collection, even though IKEA’s restaurant
Project", implemented on transportation and assembly of manager called another
September 15, 2010. Six sigma the furniture they purchase. server, for each one entered,
attributes Other at IKEA include the queue was getting bigger
IKEA uses a lean business and bigger.
innovation and development of
consumer-focused products, model, which involves working
They have optimized the
optimization of design and with the cheapest raw material
method of self-serving for a
manufacturing goals, use of suppliers and using customer quicker and smoother
engineering innovation to self-service. The cost savings are experience. As a customer,
innovate pricing, a range of then passed on to the customer clients can fill their tray with
by offering competitive prices, many types of foods until they
Lean projects Six Sigma,
creating value for the customer. reach the main station for the
focusing on shorter lead times
main dish, where they
achieved through shorter IKEA's management is also
definitely need to be served. I
product development cycles leaner and uses a flat have used Allen-Mceen
and product lifecycle organizational structure. approximation theory to
management (Gibson, 2012) calculate the time I will spend
on the queue before served.
Operations management approaches:

MBO & SMART criteria:

MBO:

- is a performance improvement method that attempts a balance between employee goals and
organizational goals, and it helps to enhanced corporate performance by properly establishing objectives
for management and staff decision-making.

SMART criteria:

-
 - Specific, Measurable, Achievable (or Attainable), Realistic, and Timeliness are the five aspects of the
acronym. George Doran used the phrase "SMART objectives" in an issue of Management Review in 1981.

- To obtain better results and reduce misunderstanding, the SMART goal planning technique focuses on
defining objectives by the specifics. According to the University of California (2017), the SMART
requirements are as follows:

S M A R T
Specific Meansurable Achievable Relevant Time Bound
The goal should The goals should These objectives The objectives All objectives
reflect the main be measurable should be should be chosen should have a
areas of and quantifiable. attainable in with the general deadline or time
concentration. practice. health of the frame within
business in mind. which they must
be completed.

TQM:
 - Total Quality Management (TQM) is a management paradigm based on the concept that an
organization's long-term success can be achieved by having all of its members, from entry-level
employees to senior executives, focus on increasing quality and, as a result, achieving customer
satisfaction.

The roles leaders The roles managers

 Senior management must practice MBWA.  For suppliers to be deemed business
partners, they had to prove that they
 Ensure that the team's decisions are would provide a superior service to the
consistent with the organization's quality company.
statements.
 Improvements to the organization and
 Senior TQM leaders must study TQM production processes are a priority for the
material and attend conferences to stay company.
current on TQM tools and procedures.
 Managers need to be trained in diverse
 Participating in award and recognition TQM activities before implementing the
ceremonies to celebrate the organization's same.
quality accomplishments
 At the beginning of each financial year,
 Coaching others and teaching at TQM the manager is responsible for allocating
seminars TQM budgets. It is part of the entire
quality assurance process to incorporate
costs.

Kaizen:
 - is a method for achieving continuous improvement that is founded on the notion that tiny, consistent
positive adjustments may lead to large gains. There are many different types of kaizen that may be used
to improve a company's efficiency.

The roles leaders The managers managers

 Recognizing that certain duties must be  The necessity of determining the scope of
given to specific people. various responsibilities inside the
company.
 To ensure that the process is beneficial to
the team.  Ascertain that workers are aware of the
Kaizen group's activities.
 To help the assistants with any problems
they may encounter, as well as to ensure  Measuring the Kaizen method's
that work is allocated as needed. performance in the workplace.

JIT production:
- is an inventory management strategy in which labor, materials, and commodities (to be used in
production) are replenished or scheduled to arrive at the precise moment they are required in the
manufacturing process.
-
The roles leaders The roles managers
 Make certain that all materials used in the  Place an order with a reputable source at
production process are stored properly. the appropriate time and date.

 Prior to the project's completion, ensure  Make certain users order the correct
that all personnel are informed of their quantity.
roles and responsibilities.
 Buying from retailers with a good
 To test all of the machinery that are used relationship.
during the production process.
 To ensure that shops provide the
appropriate amount of merchandise.
In terms of strategic planning, IKEA aims to
accomplish Total Quality Management (TQM),
flexibility, and speed, as well as an effective code of
conduct and communication, efficient stock control,
and cost reduction.

IKEA analyze their processes from the perspective of

their customers and incorporate them into decision
making.The Zero default culture can be implemented
to meet customers’ expectations. It involves a good
relationship with suppliers who need to manufacture
reliable and error-free products; errors cost money
and need to be avoided. The main aspects of TQM
are the needs of suppliers' networking and
continuous improvement. Reliability needs to be
created between stakeholders and IKEA. Therefore,
IKEA follows a code of ethics as well as produces
mistake-free products. IKEA TQM
Suppliers rely on IKEA's loyalty, and IKEA relies on
suppliers to modify their manufacturing to comply
with their code of conduct. Buying Home Furnishings
Like an IKEA Store • The IWAY Standard • The IKEA
Approach to Child Labor Prevention This code of
conduct requires suppliers to create items as
effectively as possible by reducing waste, adhering to
deadlines, caring for the environment, and adhering
to labor laws. Order lead time, customer processing
delays, and delivery frequency are all factors that
affect speed.
 A supplier's commitment to eliminating waste is
required under IKEA's code of conduct. Business
strategies at Ikea are both reactive and proactive;
in the long term, IKEA forecasts demand changes
through strategic planning (expansion), but it
IKEA JIT should stay flexible in the medium and short term
to adapt output to unanticipated swings in
demand. For this, they employ software and
communicate information (RIPD, MPR) with their
suppliers in order to create a successful JIT
timetable by balancing planning and control.

What Is Ikea's Approach to Operations Management?

 The costs are the first aspect of the organization's operational management to be handled. The
management of editing ensures that production costs are kept to a minimum. IKEA prioritizes low
production costs, as well as functionality, distribution efficiency, quality, and environmental effect. The
items are made with environmentally friendly and recyclable materials. The majority of IKEA's products
are made from recycled and sustainable materials.

Products are developed based on customer needs:

 In terms of value, IKEA is known for its low-cost creative designs, functionality, and quality. As compared
to other companies in the same industry, the organization's products are high-quality and reasonably
priced. In order to manage the global supply chain, IKEA has implemented a system. Has total control
over the administration of its own design and production processes as well as warehouse management.
  For everyone to see, Ikea sticks to its goal of delivering products that are both cheap and of good quality.
In addition, their designers' innovative designs, which still pay close attention to what consumers desire,
reinforced this well-known requirement. The company's technique of converting client needs into real
product or service development is also important.

SMART Objective for IKEA:

IKEA has set itself the ambitious goal of becoming a fully-fledged company by 2030. SMART objectives are
necessary for IKEA to accomplish the strategic goals stated in its mission statement. As well as that, IKEA should
establish ethical reasons to keep on track with its mission statement... To achieve its aims, however, IKEA must
adhere to rigorous guidelines that reflect the company's mission statement.

 IKEA wants to be circular and 'climate positive' by 2030: In the meanwhile, they want to develop IKEA's
company and make a beneficial impact on people and earth. For more than a billion people to live better
lives, they have the potential to inspire and enable them, according to Inter IKEA Group CEO Torbjörn
Lööf (2020).

 IKEA set a corporate benchmark for sustainability: Amazon and Alibaba, two e-commerce behemoths,
are pressing down. After a succession of big moves over the past several years, ranging from purchasing
forest to proclaiming support for electric vehicles, IKEA looks to be incorporating sustainability into its
 core business processes. IKEA's massive scale will undoubtedly make a dent, and it may set a pattern for
other international businesses in the coming decade.
 IKEA's announce commitments for 2030 :
 Become climate positive and reduce IKEA's overall climate footprint by 70% on average each product.

 By 2025, IKEA will be offering cheap home solar systems in 29 different regions.

 Providing services that make it easier for consumers to carry items home, care for them, and pass
them on.

3. Explain the importance and value of operations management in achieving business objectives (P5):

- Process Management : procedures with strategic goals, process designs, process measurement systems
that are aligned with corporate goals and managers who are educated and organized so they can
manage processes successfully.

About IKEA:
 Procedures with strategic goals, process designs, and process measurement systems that are linked with
corporate goals, as well as managers that are well-educated and organized, are all necessary for
successful process management. Steel's products have improved in terms of safety and ergonomics.
Wood is extensively employed in the manufacture of the company's items, demonstrating the company's
environmental awareness. IKEA should continuously review its current strategies and adopt new
technologies in order to survive in a quickly changing environment (Raghoebar et al., 2017)

- Lean management :
  In the workplace, productivity is important. Improve processes and reduce misunderstandings.
Internal communication is important. Deliver the appropriate message to the appropriate people.

 Employee involvement. Improve processes and reduce misunderstandings.

 Plans and Prices Client Service Security Features.

About IKEA :

With lean management, IKEA may reduce manufacturing

waste such as processing time, excess inventories,
management overproduction, longer transit times and
longer waiting times, poor product quality, and operator
motion. An organization's never-ending drive to become the
most effective, efficient, and inventive firm is referred to as
lean management in the business world. Customers are
more sensitive to firms that implement lean manufacturing concepts since it focuses on consumer needs
(IKEA, 2017).
- Capital management : is responsible for making sure that a company's operations and output are
optimized at all times and under all circumstances. In manufacturing services, the management capacity
in operations management determines the manufacturing process development capabilities. When
goods are inconsistent, the distribution process is impeded, and the business's image suffers, which is
reflected in the consumers' disapproval of corporate goals. Far (Ima Foundation, 1998)

About IKEA:

Storage of produced
goods is now possible
due to adequate
infrastructure
IKEA ensures that items
are always available,
regardless of high or
low demand.

There are
warehouse-
like layouts at
IKEA shops
Management of operational functions that assist IKEA to achieve SMART goal:

Distinguish between the ‘operations function' at IKEA and the ‘sales function' as a key activity of any
retail firm. The ‘operation function' at IKEA may be defined as a body or department inside the firm that
manages different or most operation planning for IKEA's products and services. The 4 V's of operation
model may be used to analyze IKEA's operation function. Volume, Variety, Variation, and Visibility were
the four dimensions of this concept. In comparison to other retail locations, IKEA provides a larger
selection of furniture and other items. It also has a high level of demand fluctuation and is adaptable to
the needs of its customers. IKEA sells a lot of stuff compared to other retailers. Large-scale production
would enable IKEA to achieve its aim of supplying furniture at a reasonable cost. Because of IKEA's
reputation, demand is predictable and peaks on weekends in most cases. And last but not least, IKEA is
well-known, with catalogs and guides available to clients, as well as a customer care department.

The most important operational function:

 In the interview, the most important role of a manager is lean management. Employee and resource
waste is reduced as a result of its enhanced efficiency, allowing more time for innovation and quality
control than before. Because of this, the firm becomes more disciplined and its goals are easier to attain.

4. Evaluate how leaders and managers can improve efficiencies of operational management to
successfully meet business objectives (M3):

Leaders and managers can successfully achieve the business goals of their bosses. While at a distance as
one of the best methods to enable work to enable workers to enable members to create members,
enabling external employees to work productively increases the operational efficiency of the
management must produce their employees to produce at the maximum level. To produce in a virtual
environment, access virtual private networks. These networks are secured and can be accessible by
employees, where Internet connection and internet entry are available 24 hours a day, 7 days a week. It
has aided in the procedure and can assist in the operation. Employees have the ability to work at their
preferred hours and in preferred places, which benefits the company. They may also create an incentive
program for workers and other people so that they are motivated to reach their objectives and continue
to work hard even after they have been attained.

Evaluation in IKEA:

The organization's primary concern for managers is cost. Effective operations management ensures that
production costs are kept to a minimum. In addition to cheap production costs, IKEA places a high priority on
satisfying the demands of function and efficiency in distribution, quality, and environmental effect. Sustainable
and recyclable materials are used to create the items by the organization. The majority of IKEA's goods are
manufactured from recycled and sustainable materials. At a reasonable price, this company is recognized for its
innovative designs, functionality, and high-quality products (Couto et al., 2017).

IKEA uses a self-service model instead of appointing sellers to participate in customers. It also focuses on
lowcost, modular and simple furniture. The products are delivered to customers in a flat shape. This flat shape of
the products contribute to increase the supply chain of the organization as they are simple for suppliers and
consumers. This strategy to deliver the flat package reduces the shipping costs, saving, the construction together
with the assembly. It also offers a larger transport system and storage area. The prices of the products that the
organization have been set up are relatively lower than the other organizations. IKEA analyzes market strategies
and new constructions implemented by its competitors, producing their own modified designs at a lower price to
attract customers. Other organizations produce ready and assembled furniture that increases costs while IKEA
produces furniture to be assembled by the customers and offers a flat package that reduces the cost of the
product (Hill, Jones and Schilling, 2014).

It's important for IKEA's executives to stay loyal to themselves while still keeping an eye out for the interests of
others. Supportive leaders who care about their followers' well-being are more likely to earn their followers'
allegiance. Typical of the COVID 19 epidemic's impact, IKEA initially had a lot of financial troubles and had to
transfer shares to get by. As for the important decisions, it was leaders who made them, and they bore full
responsibility for them. When they make a mistake, these leaders own it and do everything they can to correct it
as soon as possible. If the chosen technique is appropriate for the circumstances in which the business and the
recipient find themselves, effective communication takes place. Ikea, for example, may not choose to advertise
on television that they have a product in stock that one customer has requested because it is not guaranteed
that the customer will watch that channel; therefore, the best way to inform them is to call them directly to
ensure that they have received the message clearly.

II. Demonstrate an understanding of the relationship between leadership and management in a

contemporary business environment (L4):

1. Assess the factors within the business environment that impact operational management and
decision-making by leaders and managers (P6):

CSR:
- is a management concept that promotes businesses to include social and environmental concerns into
their operations and relationships with their customers. The majority of people think of CSR as a way for
firms to balance economic, environmental, and social imperatives while still satisfying their
shareholders' and stakeholders' expectations; however, there are exceptions.

About IKEA:

During the Covid19 epidemic, IKEA took particular CSR measures to safeguard and promote the health and
well-being of its workers, customers, business partners, and communities. Around 1.7 million face forces,
gloves, bed linen, and food items were provided to medical facilities all over the world. IKEA’s COVID-19
outreach Initiative, in instance, involves collaboration with more than 80 local organizations in Portugal to
provide "games and learning" packages to 10,000 children and their families at home.

More than 117,000 goods, including fabrics, seats, and automobiles, were sent to medical facilities in China.
Domestic violence facilitation through Lockdown limitations in fully furnished flats in Germany and
Switzerland. Bed linen, textiles, and other associated items like as chairs, sponges, and water bottles for
Covid19 medical personnel and volunteers in Daegu, Korea, and Hyderabad, India.

Culture:

- Organizations will be impacted by the culture of a location or nation in which they operate. So that they
could create a product that would be well-received by this group, the business climate was evaluated.
During this phase, the employees' culture is most directly tied to business processes and enables the
firm to enhance the productivity of the labor force within a particular culture.
About IKEA:
The culture of IKEA has changed some of the rules of its former culture. The organizational culture
reflects the general business behavior as they are seen around the world. While the pandemic you also
support colleagues mental health and well-being, and pay salaries to all colleagues. It will create a
cultural set of shared values, beliefs and standards. and standards that affect the manner as employees
feel at work, feel and behave. they also help colleagues to work or learn home, share their work area in
close proximity with the rest of the household, and in some cases childcare and house lessons are
adapted to adapt to day jobs. For those who continue to work, extensive security measures in their shops,
restaurants and sales centers for their protection, including social remote training, perspective screens,
customer information and consistent hygiene practices.

Value:
- In order to be able to deliver a product/service that the customer enjoys and accepts, a firm must examine
and assess the consumer's desires and requirements. Principes are key aspects in organizational
management for improving an organization's quality and labor standards. Managers and executives will
concentrate on creating a conducive work atmosphere.
About IKEA:

With a market worth of SEK 188.2 billion, IKEA retains its position as Sweden's most valuable brand despite
the COVID-19 outbreak wreaking havoc on the globe and national economies. It has dedicated to its
company transformation as the world becomes increasingly digitalized, in order to connect their physical
 locations with a better online offering. A 48 percent increase in the value of If's Swedish brand value to SEK
13.1 billion coincided with a six-place jump in the rankings from 24 to 18.
The insurance company, which has almost 7,000 employees and 3.7 million clients in the Nordic and Baltic
countries, has had a successful year in its commercial and industrial business sectors.

ethics and sustainability:

- Sustainable decision-making requires an understanding of virtue, rightness and context. This means living
within the limits of the natural and social system. Rules and incentives encourage replenishment and
restrict depletion and contamination in the system, which has been in place for decades.
About IKEA:
 Despite the pandemic of Covid19, sustainability remained at the forefront of consumer spirits. IKEA tries to
create a better life for all its stakeholders, including clients, employees, suppliers and communities. In
addition, the IKEA ethics program has training for employees and codes and guidelines for ethical conduct.
IKEA wants to understand your employees and your opinion at the workplace.
attracts this through the implementation of 10 main values, a strong statement of vision and the code of
conduct of its supplier. The IKEA values have
helped lead IKEA actions. For example, the company tries to ensure that the materials of its products are
not removed from protected forests, which corresponds to the IKEA value to accept.

How Leaders and Managers Respond to the External Impacts by Becoming a Corporate Entrepreneur and
Encouraging Intrapreneurship:

 Thinking and acting like an entrepreneur:

 Entrepreneurial genes do not exist, but there are some behavioral and psychological traits that make
entrepreneurs who they really are, regardless of their genetic makeup. entrepreneurs have a strong
sense of independence, a strong drive for success, and a strong belief that they have control over their
life. They are risk averse in a disproportionate way. Entrepreneurs do not desire greater risk, but they
are better able to deal with ambiguity. Everything they touch turns to gold, and they're relentless about
finding new possibilities.

 a culture of intrapreneurship:
 Entrepreneurship inside a corporation may be described as the use of start-up methods within a
corporate setting. Agile and intrapreneurial companies are more likely to generate innovative ideas
within their own walls. It involves promoting employees from project manager to intrapreneur.
An intrapreneur, on the other hand, has more directly applicable abilities to do particular duties than an
entrepreneur, and is exposed to more risks in the context of their employment. When establishing a true
intraprenrenual culture, managers should follow these three steps:
1. Clear vision and honest beliefs are essential;
2. embrace a culture that allows failure;
3. encourage personnel.

 Leading intrapreneurs:

In today's corporate environment, exploiting a company's capacity to stay aligned and efficient is critical
to its survival and success. Previous investments, client relationships, and other sources of income that
continue to provide revenue. The exploration process encompasses new technologies, new markets, and
the future.

Leaders must be both ambidextrous and flexible in order to ensure the future viability of their
organizations. As a result, disruptive innovation efforts tend to need to be totally integrated outside of
 the existing firm, with their own culture and methodology, yet working directly with the company's top
management team.

2. Analyze how these different factors affect the business environment and wider community (M4):

The following factors have an impact on the business environment and the larger community: (2018,
Gleeson)

Before making a decision, the mission must be clear. The organization's mission provides it with ideas,
direction, and a purpose.

Communication: If they’ve had a discussion with a group of spirits, the most effective remedy is simple to
find. Better decision-making results from effective communication. (Gleeson, 2018)

Political boundaries: Corporate laws differ from one country to the next. Limit values, both political and
legal, have an essential influence in a company's choice.

Problems: The approach for solving an issue is always determined by the type of problem. If the
problem is organized, a decision will be made based on the organization's policy and action plan. New
action plans were created while the unprogrammed issue was occurring.

About IKEA:
Streght:

 Smart method to decrease expenses that integrates excellent quality.

 Taking a prudent approach to market research that allows the company to be proactive when it comes to
entering new markets (Kumar , 2010).
 In every location, IKEA creates a world-class infrastructure, making it a huge hit with the locals (Times,
2010).
 As a result, IKEA shops are able to get products directly from suppliers. There is a reduction in the amount
of time spent in transit as well as a reduction in carbon emissions.

Weekness:

 . Manufacturing takes place in a variety of countries, each with its own set of geographical constraints,
which usually results in the erroneous application of mandatory working standards.
 IKEA is unable to satisfy a crucial requirement that it has set for itself: quality goods at low prices, due to
its substantial expenditure in research and development. Scale economies help a company to save
expenses while maintaining a good price-quality ratio.
 Communication barriers are a major cause of concern. IKEA management must maintain effective
communication channels both inside the firm and with its consumers.
 IV. Coclusion:

The research examined IKEA's functions and appraised the company's strategy by utilizing the process model
to comprehend the Organization's operational activity. The following paper analyzed the relevance of IKEA's
performance targets and discussed linear programming for planning and controlling the process of
developing the mobile organization. According to IKEA, operations administration is an important strategy
and instrument for managing the most efficient and regulated organizational activities.

These operations management decisions help the company produce furniture that is both accessible and
appealing. Furthermore, different viewpoints on the responsibilities of leadership and management exist.
The research looked at the company's critical assessments from several perspectives in order to offer them
with positives. In order to thrive in the future, the company should focus on resolving existing challenges
and pursuing the best options.

V. Reference:

What is operations Available at: https://www.myaccountingcourse.com/accounting-dictionary/operations

Operations and Operation management Available at:

https://www.researchgate.net/publication/349836532_Operation_management

Theory Available at: https://www.oreilly.com/library/view/operations-management-

sustainability/9780134422404/xhtml/fileP700049903300000000000000000CAD9.xhtml

Sixma definition Available at: https://eduviet.vn/tin-tuc/6-sigma-phuong-phap-quan-tri-chat-luong.html

Role of Operation management Available at: https://www.informit.com/articles/article.aspx?p=345782&seqNum=4

Lean Managent Available at: https://yourbusiness.azcentral.com/role-lean-leader-15192.html

What is operataions in IKEA Available at: https://www.nursinggeeks.com/operations-management-ikea/

MBO definition Available at: http://learnersdestination.com/management-by-objectives-mbo/

TQM definition Available at: https://searchcio.techtarget.com/definition/Total-Quality-Management

Total roles quality management Available at: https://www.slideshare.net/vijayangopalsamy/total-quality-management-

62848116

Evaluation of operations in IKEA Available at: https://graduateway.com/operation-management-ikea/

apply SMART in IKEA https://www.smartinsights.com/goal-setting-evaluation/goals-kpis/define-smart-marketing-
objectives/

The ambitious in IKEA available at: https://www.essay48.com/13655-IKEA-Mission-Vision

What is CSR Available at: https://www.thomasnet.com/articles/other/ikea-csr/

How different factors affect the business environment Available at: https://www.imd.org/research-
knowledge/articles/Building-an-intrapreneurial-organization/