Pest analysis of ikea political factors: these factors affect the companies in terms of legal issues and government regulations and define the formal and informal rules under which any businesses must operate when in that specific country.
Moreover, ikea’s supply chain activities can also be disrupted by political instability a large part of ikea’s supply chain is located in europe and political disruption there can affect it deeply economical: economic forces play a very special role in the business environment. “ikea” also affected with these external environment forces in the external environment new risk factors are arises regularly and they difficult to identify for the managers of the business in the external environment new risk factors are arises regularly and they difficult to identify for the managers of the business.
Pestel is a strategic analytical tool used to assess the impact of external factors on businesses the acronym stands for political, economic, social, technological, environmental and legal factors affecting businesses it is important to clarify that businesses have little and no influence over.
Ikea group report contains a full version of ikea pestel analysis the report illustrates the application of the major analytical strategic frameworks in business studies such as swot, porter’s five forces, value chain analysis and mckinsey 7s model on ikea. Response to question 1: 20 external & competitive positioning - inter ikea 21 external environment factors embed in this environment of ikea are beyond its control but impact its operations 211 pest analysis political factors changes in governments, their priorities, and legislation programme have great impact on organizations. A pestel/pestle/pest analysis of ikea ikea is also affected by these forces the maker of home furnishing products is known for its low prices and great quality products to sustain a strong brand means being able to respond to the changing market dynamics faster pestel is a strategic tool used to analyse the impact of these external.
Ikea external environmental forces essays and research papers ikea external environmental forces ikea strategic management report executive summary this report provides an analysis, evaluation and recommendation on the strategic management of ikea. Ikea still operates mostly on european market, so they can still go futher on the international market the growing awareness of people about decreasing the negative impact on the environment can contribute to increase of popularity of ikea environment friendly products for the companies in the furniture industry, there are possibilities to develop social responsibility for instance by working with charities to increase the brand value.
This reduces costs and benefits the customer and the environment economic factors – low prices appeal to ikea’s customers especially in tough financial times conclusion ikea is a well-known global brand to keep doing well it must assess internal and external factors that may affect the business’ performance.