Q1. Based on the article above, what organizational strategy do you think IKEA is pursuing?

Why do you think organizational strategy is important to managers? Discuss.

Based on FEED-X Programme, I think IKEA use the competitive strategy. A competitive
strategy is a long-term plan of action devised by a corporation to gain a competitive edge
over its competitors after analysing the latter's strengths and weaknesses and comparing them
to its own. Actions to withstand market competitive challenges, acquire customers, and help
cement the company's market position can all be included in the strategy. IKEA recently
announced its active participation in the FEED-X programme, part of Project X, a WWF founded
corporate accelerator. To create a distinctive element, the company maintains unique aspects of its
products in the market. Firms hope to attain market leadership by using differentiated leadership. On
the article, Mr Mathiesen works directly with suppliers and advisors on how the IKEA Food business
can achieve the sustainability goals that it has set. IKEA's goal is to become the lowest-cost
manufacturer in the industry, which is accomplished by producing in huge quantities, allowing the
firm to gain economies of scale. High-capacity utilisation, strong bargaining power, and advanced
technology deployment are only a few of the criteria required for cost leadership.
Strategic management is critical since it aids in gaining a competitive edge and developing a long-
term business plan. Organizational strategy is important to managers. Because organisational strategy
enables you to coordinate all of your resources and achieve strategic performance. Many business
owners have a virtual plan running through their brains. They may understand where their company
needs to go and what actions will get them there, when nobody else does. It also can helps managers
decide how to act in face of change and uncertainty and helps comlec and diverse organizations work
together.

Q2. In your opinion, what are the constraints and challenges faced by the managers in order to be
aligned with the strategic goals of IKEA?

There will be many problems with such a big plan. Company managers need to solve the
problems they are facing to make the plan go smoothly.Feed-X program need to have a
financial support. As a Sustainability Manager you will be a strategic partner to the Supply
business, together with the Sustainability matrix leading and developing the Sustainability
agenda for the whole organization globally. A big part of your assignment will be to inspire
and empower the co-workers to continuously develop in their assignments and perform to
their best. You will have an important role to work together with internal and external
stakeholders across the organization to secure sustainability is a natural part of the business
agenda. Managers need to lead the sustainability agenda by setting priorities, actions and
goals based on IKEAs Sustainability strategy and the IKEA Supply Strategy where main
focus coming two years will be the climate agenda, responsible sourcing, circularity, work
conditions in the supply chain. It also act as a key spokesperson in relation to sustainability
and supply and secure an optimize sustainability matrix set up within Supply, where ‘Work,
Lead and Organize’ is well anchored and have preconditions to deliver results.

Through a strong focus on increased usage of sustainable materials, plant-based foods,

renewable energy and more, we continue to create positive change and work towards our goal
of becoming climate positive by 2030.With some raw materials we have been involved
longer in securing environmental sustainability and so the challenges are better understood
and in some cases mitigated. With other materials, we are in an earlier stage of the
sustainability improvement journey and here we are faced with more uncertainties and a need
for mapping the risks. Don’t know how many customers support the plan.