OPERATIONS AND SUPPLY CHAIN MANAGEMENT SCM540

Assignment Case Study 1

IKEA Invades America

This is an individual assignment.

It is worth 20% of the final grade.

The completed report (hard copy) must be submitted to the Ms Farah Abou Zolof, Administrative
Assistant

College of Business Administration General Office by 6:00 pm on Sunday, 12 May

2013.

A case study paper and other relevant information are provided.

Students are asked to review and critically analyse the case study paper and the information
provided. Responses to the questions will be within a framework of description and diagnosis of,
and prescription for the issues inherent in the case study.
The corresponding questions together with allocation of marks are shown on the next page.

Reference to minimum five (5) papers drawn from the journal literature or other relevant sources
on operations and supply chain management will be required in support of the analysis and
answers in the report.

Simple repetition of wording in the case study paper without discussion/comment will lead to the
assignment being rejected.

The report needs to have a length of 2000 to 2500 words.

CASE STUDY MATERIALS

Case study paper IKEA Invades America, Youngme Moon, Harvard Business School,
September 2004.

Other information on IKEA, extracted from various relevant sources.

You can also use other information but you must provide reference

ASSINGMENT QUESTIONS (Total 100 marks)

In general, what is the IKEAs competitive strategy? Which customers does IKEA seek to satisfy,
and with what products and services?

(15 marks)

How has IKEA developed its supply chain strategy to fit its competitive strategy?

(15 marks)

What position has IKEA established in the furniture retailing industry in the United States?
(10 marks)

How has IKEA achieved its business idea Low Price with Meaning?

Some industry observers have suggested that IKEA should open a number of smaller, satellite

(30 marks)

stores across the United States (e.g., in shopping malls, etc.). By offering a limited range of IKEA
products, these IKEA Lite shops would presumably give consumers who do not otherwise have
access to a full-size IKEA the opportunity to experience the brand. In addition, consumers who do
live near a full-size IKEA would be able to use these mini-outlets to make minor purchases (e.g.,
purchase a set of mugs, as opposed to an entire living room set). Do you agree with this idea? Why
or why not? Your discussion and answers need to be linked to the way in which IKEA has
translated its competitive strategy to the corresponding supply chain strategy.

(30 marks)