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Discussion on the term "strategy" used in IKEA

2020-05-18 来源: 51Due教员组 类别: Report范文

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下面51due教员组为大家整理一篇优秀的代写范文- A Discussion Of The Term “Strategy” Used In The Firm Ikea And By Michael Porter In The Hbr Readings,供大家参考学习。这篇文章讲述的是企业战略是决定企业经营活动成败的关键因素。选择科学、合理的经营战略是非常重要的。然而,人们可能会以不同的方式理解和解释“战略”一词。因此,非常有必要讨论“战略”一词如何在特定背景下使用。一篇题为“为什么宜家认为这一大趋势将定义未来30年的业务”的文章由Rahim Kanani撰写,发表在一家管理刊物——《福布斯》的一家具体公司上。它将比较文章作者使用术语“策略”和迈克尔·波特在《哈佛商业评论》阅读中使用“策略”的方式。在这篇文章中,我们将比较宜家(IKEA)和迈克尔波特(Michael Porter)在HBR阅读中关于“战略”的文章中使用的“战略”一词。

A Discussion Of The Term “Strategy” Used In The Firm Ikea And By Michael Porter In The Hbr Readings

Strategy of an enterprise is a key factor to determine the success of business activities. The choice of scientific, and reasonable business strategy is very important. However, people may understand and interpret the term “strategy” in a different manner. Thus, it is very necessary to have a discussion of how the term “strategy” is used in a specific context. An article entitled “Why IKEA Thinks This Mega-Trend Will Define The Next 30 Years Of Business”written by Rahim Kanani, published on a specific firm in a management publication---Forbes is selected in this article. and it will compare the way the author of the article uses the term “strategy” to the way that “strategy” is used by Michael Porter in the HBR readings. In this article, it is to have a comparison of the term “strategy” used in the article on “strategy” of firm IKEA and by Michael Porter in the HBR readings.

 

The use of the term “strategy” is similar in the firm IKEA and Michael Porter’s HBR readings as basic components of “strategy” is understood as a set of activities with an “ valuable position”. In the article entitled “Why IKEA Thinks This Mega-Trend Will Define The Next 30 Years Of Business”written by Rahim Kanani, the term “strategy” is used in a rather specific way to refer to sustainability strategy with the name as “People and Planet Positive strategy”. Around this sustainability strategy, a lot of activities are created. For example, there is the appointment of relevant figures in charge of  strategy.  IKEA announced to make Steve Howard, a former founder and CEO of The Climate Group, as the person in charge of for IKEA Group’s sustainability strategy(Kanani ). In addition, there is foundation and a lot of planning of IKEA for the final release of sustainability strategy---“ People and Planet Positive strategy”. According to the interview with Steve Howard made by the author of the article,  as early as twenty years ago, some environmental and social plans with the purpose of sustainability were developed by IKEA(Kanani 2014). Besides all of those practical consideration and activities of sustainability strategy---“ People and Planet Positive strategy”, there is some underlying ideological motivation of it. Steve Howard mentioned that their values, and belief is that they are responsible to help set up a better future and exert a positive influence(Kanani) Also, Michael Porter in the HBR readings defined the term “strategy” at first as follows: “strategy is the creation of a unique and valuable position, involving a different set of activities”(Porter 3). It can be found that both articles view strategy as not an event in isolation, but as some concepts require a series of activities related to it. In addition, they both stress the term “strategy” as a “ valuable position” as it stands for a sort of responsibility for a better future and next generation.  

 

However, there are some difference in the understanding of term “strategy” in those two articles in terms of what benefits can be brought by “strategy” or namely the function of “strategy” for an enterprise. During the interview with Steve Howard made by the author of the article, in addition to the stress of strategy’s values, Steve Howard  mentioned that they have a clear awareness of the role of sustainability in the future business world by describing it as a key of competitiveness and highlighted its role in helping IKEA get a long-term access to key raw materials, a powerful supplier base, increase their ties with colleagues and customers, and improve their productivity(Kanani ). This shows that when IKEA put forward and put into practice such  sustainability strategy---“ People and Planet Positive strategy”,  they also give a lot of consideration to what monetary and business benefits can be brought by “strategy”. With this sustainability strategy, it is to win competitive advantage compared to rivalry in competition in the global market in terms of  raw materials,  supplier base, workforce , and at last productivity. Those things are what the rivalry of IKEA in competition in the global market are seeking and improving. At best, it can be said that IKEA can do better than them in this regard with the so called sustainability strategy---“ People and Planet Positive strategy”. According to  the idea of Michael Porter in the HBR readings, Operational effectiveness (OE) means doing similar activities better than rivals do them, and by contrast carrying out activities different  from competitors or carrying out  similar activities in different ways is supposed to be a strategy(Porter, 5). Thus, sustainability strategy---“ People and Planet Positive strategy” used by the author of the Forbes article is more consistent with the definition of Operational effectiveness (OE).  It is hard to see that this have any relevance with the term “strategy” advocated by Michael Porter in the HBR readings. Just as Michael Porter said, operational effectiveness is not strategy (4). One main difference of the term “strategy” used in the firm IKEA or the article written by Rahim Kanani and that used by Michael Porter in the HBR readings is that the former mix  Operational effectiveness and strategy with a focus on doing similar activities better than rivals.

 

To sum up, “strategy” used in the article on “strategy” of firm IKEA and by Michael Porter in the HBR readings is similar as they agree to see it as a set of activities with an “ valuable position”. But the former understood the function of “strategy” in fact as Operational effectiveness, which constitutes the difference of the usage of “strategy”.  

 

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