Corporate Strategy And Governance

Chapter 1: Introduction

1.1 Overview and background of the research

Corporate governance has become a buzz word in the corporate world. All types of organisation and business owners applying the concept of corporate governance in order to meet out the customer needs and ethical environment within workplace. This process involves the proper structure or procedure designed for roles and authorities. Corporate strategy plays an important role in an organisation to gain sustainability and managing business. Therefore, it is essential for each and every company to formulate corporate strategy as it determines the scope of a operational activities and the manner in which a processes support the goals as well.

1.2 Overview and background of the organisation

Present research will be based on corporate governance for which study will be taking IKEA which is the furniture retailer company that spread at wider level. It is a private limited  corporation that was founded in 1943 by Ingvar Kamprad. The headquarters of this retailer is located in Leiden, Netherlands. The present revenue of this organisation is $40.906 billion. There are 194,000 employees are working for proving effective services to customers. The focus of firm is one managing innovation in wood according to customer expectation and requirements (Amran, Lee and Devi, 2014). As a company cannot run without contribution of stakeholders, therefore, it is essential to take their participation for developing corporate strategies. In this regard, these stakeholders concerns more on developing fresh and new furniture designs to transform lives of buyers. The vision of the company is to create a life better for many people by offering innovative and well-designed furniture and home appliances at low price which become easy for all people can afford it. The mission of the company is to maximise the level of stakeholders and communicate the objectives and goals of company to them.

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1.3 Rationale of the research

Present study based on to issues behind increasing complaints of customers under IKEA. Due to this issue, it has faced various problems related to generate revenues and gain sustainability at marketplace. For this purpose, an analysis on customer services to gain competitive advantage id done, which might be helpful to get over from the corporate issues (Filatotchev and Stahl, 2015). The main purpose of this present study is to evaluate the solution to keep customer focused on the product or services of IKEA. The reason for taking this issue further, it helps to take the long-term goals and make it more effective and influencing. Customer service is very significant issue for the IKEA which is important to be reduced in appropriate manner. Overall, it helps to take the new managing successful business growth. Overall, company needs to take some strict action to get over from this issue as soon as possible.

1.4 Research Aim, objectives and questions

It is considered as most important part of research which defines aims and objectives to carry out entire investigation. By formulating the same in appropriate manner, a company gain opportunity to make improvement in its services and gain high profitability in business. In this regard, for minimising the rate of customer complaints under IKEA, aims and objectives are given as beneath:-

Aims: “A Critical analysis of revenues loss in 2011 due to numerous customer complains”. A Study on IKEA.


  • To identify the issues behind numerous customer complaints in IKEA
  • To determine the importance of focussing on customer services as a competitive advantage.
  • To identify the impact of issue on revenues and profitability of IKEA

Research questions

  • What are the issues behind numerous customer complaints in IKEA?
  • What is the importance of focussing on customer services as competitive advantage?
  • What is the impact of issue on revenues and profitability of IKEA?

1.5 Structure of Report

This is being considered as one of crucial section of a research which shows blueprint that consist with every single activity which researcher is going to do in order to conduct the investigation. In present report, where the issue on which whole research will rely i.e. customer service that has been very significant issue for IKEA, is going to carry 5 different chapters and these are comprehended beneath:

Chapter 1 : Introduction – This section of the research report prepares the base of overall investigation because, it basically stays enclosed with the aim and objectives on the chosen topic. Apart from this, introduction can be defined as an overview or background of research that basically delivers right information related to the topic which helps in improving understanding of the topic. Including this, it may also carry significance of research as well. Thus, this section includes objectives, aim and background of the topic and shows that why the research is going to get conducted.

Chapter 2 : Literature Review – This section of the research is going to focus on a range of research questions that has been developed by investigator (Khan, Muttakin and Siddiqui, 2013). Basically, this section stays enclosed with answers of selected questions and here researcher takes help of articles, scholar books, journals and other online sources. Away with this, section includes different theoretical aspects which would aid investigator in improving knowledge related to the topic and here customer service given by IKEA will be the base of questions.

Chapter 3 : Research Methodology – This chapter is going to be enclosed with a method that could basically help in conducting overall investigation, Along with this, section also stays enclosed with different data collection and the techniques as well of overall investigation. Overall primary and secondary are the two different data collecting methods and are going to be enclosed with respondent

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