Pre-release

Question 1

How IKEA meets the objectives of customers

Answer 1

• Affordable and sustainable products

Question 2

How IKEA meets the objectives of suppliers

Answer 2

• Pay on time, with fair prices

Question 3

How IKEA meets the objectives of potential investors

Answer 3

• Sustainable profitablility

Question 4

How IKEA meets the objectives of lenders

Answer 4

• Clear repayment plans

Question 5

How IKEA meets the objectives of local communities

Answer 5

• Job creation

Question 6

How IKEA meets the objectives of government

Answer 6

• Compliance with laws

Question 7

How IKEA meets the objectives of pressure groups

Answer 7

• Environmentally-friendly

Question 8

How IKEA meets the objectives of shareholders

Answer 8

• Growth and dividends

Question 9

What is the consumer rights act (2015)

Answer 9

• A legislation which protects consumers by making sure the poduct they buy is
  1. Of satisfactory quality
  2. Fit for purpose
  3. As described

Question 10

How does IKEA comply with the consumer rights act (2015)

Answer 10

• Quality assurance
• Clear product information
• Return policies
• Warranty

Question 11

How does IKEA adjusts its operations to capitalise on increased disposable income

Answer 11

• Premium product line (IKEA Stockholm)
• Personalised customisation (e.g.: custom kitchen design)
• Enhanced in-store experience (Restaurant)

Question 12

Why would IKEA use trade credit

Answer 12

• IKEA can sell the product first which can help them pay the supplier back

Question 13

Why would IKEA use overdraft

Answer 13

• In the case of cash-flow fluctuations and sudden expenses