Pre-release Flashcards
1
Q
How IKEA meets the objectives of customers
A
- Affordable and sustainable products
2
Q
How IKEA meets the objectives of suppliers
A
- Pay on time, with fair prices
3
Q
How IKEA meets the objectives of potential investors
A
- Sustainable profitablility
4
Q
How IKEA meets the objectives of lenders
A
- Clear repayment plans
5
Q
How IKEA meets the objectives of local communities
A
- Job creation
6
Q
How IKEA meets the objectives of government
A
- Compliance with laws
7
Q
How IKEA meets the objectives of pressure groups
A
- Environmentally-friendly
8
Q
How IKEA meets the objectives of shareholders
A
- Growth and dividends
9
Q
What is the consumer rights act (2015)
A
- A legislation which protects consumers by making sure the poduct they buy is
1. Of satisfactory quality
2. Fit for purpose
3. As described
10
Q
How does IKEA comply with the consumer rights act (2015)
A
- Quality assurance
- Clear product information
- Return policies
- Warranty
11
Q
How does IKEA adjusts its operations to capitalise on increased disposable income
A
- Premium product line (IKEA Stockholm)
- Personalised customisation (e.g.: custom kitchen design)
- Enhanced in-store experience (Restaurant)
12
Q
Why would IKEA use trade credit
A
- IKEA can sell the product first which can help them pay the supplier back
13
Q
Why would IKEA use overdraft
A
- In the case of cash-flow fluctuations and sudden expenses
