core company values as well as social and environmental responsibility.
When the core company values and the social and environmental values
are in accordance with the values of customers and other stakeholders,
resonance (rather than dissonance) occurs. To be successful, a
values-based service business must seek resonance with its customers and
other stakeholders in terms of values and avoid any suggestion of
dissonance. Companies, such as IKEA, nurture and communicate values in
their customer relationships.
- IKEA’s Marketing (1 page)
Corporate strategy begins with marketing and
understanding the key elements of the marketing plan. For IKEA,
describe the following elements of its marketing strategy: - How do IKEA’s products, services, and related attributes satisfy the wants and needs known as its value proposition?
- How does IKEA create a well-defined market
position that appeals to customer wants and needs and differentiates its
offering from competitive offerings in a process known as positioning
and differentiation?
- Assess IKEA’s strategy using the criteria listed below:
- Value Chain (1 page)
Analyze the three sources of value (economic, social, and environmental) in IKEA’s value chain. - Explain sources of value as they relate to the wants and needs of IKEA’s core customer.
- Explain how IKEA’s supply chain supports its value proposition.
- Explain how IKEA’s focus on customer value (economic, social, and environmental) is reflected in its supply chain.
- Intangible Products (1 page)
- Explain IKEA’s intangible products and benefits.
- Explain how other firms employ this concept of intangibles to erect barriers to entry for competitors.
- Explain how the concept of intangible benefits is used to increase profits.
- Customers (1 page)
IKEA considers the customer to be a critical
stakeholder. The IKEA message is directed to the majority of people and
what they can afford, and its pricing is dependent on the economic
values that serve a majority of its customers. - Explain how this approach may or may not maximize profits for IKEA.
- Explain if this premise is at odds with supply and demand economics. Give reasons for your answer.
- Performance Measures (1 page)
Suppose you are a vice-president of
manufacturing for IKEA and are responsible for establishing operating
performance measures. - For all of the performance factors other
than quality and cost, create a set of 4–6 performance measures for
evaluating your managers that integrates IKEA’s values (economic,
social, and environmental) as discussed in the article written by
Edvardsson. - For each performance measure, identify one
specific process measure that demonstrates how well these values are
being upheld in the manufacturing activities including suppliers of the
company. - Recommend how you would develop the workforce to livethese
values in the workplace. Suggest types of hiring, training, and
performance management criteria that you will apply to the workforce.
Write a 6 page paper in Word format. Please use 3–7 scholarly
articles in your research. Apply APA standards to citation of sources.





