Essay about Operation Management
Being one of the famous brands for furniture, IKEA has its own operations design that had been proven successful based on the growth of the company throughout the years of business. IKEA’s vision is clear which is ‘to create a better everyday life for the many people’ and aims to offer well-designed and functional furniture at a very low price that as many people as possible will be able to afford them.
Unlike other convention furniture retail, IKEA stores are located at the most strategic location in …show more content…
Discuss the ‘operations function’ within IKEA and how it is different from the ‘sales function’ as a core activity of any retail businesses.
IKEA’s ‘operation function’ can be described as a body or department within the company that manage various or most operation planning towards the product and service that IKEA offers. IKEA’s operation function can be analysis using the 4 V’s of operation model. This model consisted on 4 dimensions namely Volume, Variety, Variation and Visibility can be use to differentiate IKEA’s operation function from other sales function that other retail business adopted (Graelaws, n.d).
In terms volume, IKEA does have a high volume of products to offer compares to any retail business. By producing product in a high volume it would allow IKEA to achieve economic of scales, which in turn would help the company to attain its objective to provide furniture at a very low cost. Secondly variety, IKEA has a wider range