An objective of writing this report is to identity and analyzes operation system applied in IKEA, the well-known low cost yet high quality home of furnishing. Function, process and strategy of IKEA operation system will be accessed to identity the core competency that lead to the successfulness of IKEA in the world. Besides, other purpose in complete this report is to analyze the strength and weakness of operation system in IKEA. Operation management is procedure where processes of production or deliver goods and services is being monitoring and managing. Operations management is the activity of managing the resources which produce and deliver products and services (Slack, Chambers and Johnston, 2010). Operations management is important because without a proper operations management, an organization will unable to transform their knowledge, information, skill and resources to produce products or service in order to add value and satisfaction to their consumers to generate profits.
1.1 Background of IKEA
IKEA, an internationally well-known Swedish home of furnishing, started its operation in 1943, by founder - Ingvar Kamprad. It is the largest Swedish home furnishing retailer and designer in the world. IKEA is very famous with it low price concept where they produce and offer well-designed and functional home furnishing products at price as low as possible with variety of choices. They target to sell their brand to as many as possible of consumer who afford them, with objective to make everyone’s life at home better than yesterday. IKEA trademark impersonate as leading home furnishings product in the world, where they have 287 stores in more than 38 countries around the world in 2011. Their co-workers are more than 130,000 people. IKEA promote and sell their brands through catalogues, which is given out for free, and their first catalogues was published and distributed on 1951. IKEA brands are Swedish heritage style, which is always full of...