FRAMEWORK OF THE ANALYSIS OF ENTERPRISE BUSINESS SYSTEM: IKEA CASE STYDY

Abstract

In order to get a clear view on how a firm and its external environment form and develop their own business system, the Enterprise business system approach is discussed in the paper. The framework developed here is based on the dominant management models: ‘Five forces’ model of a competitive strategy (Porter, 1980), ‘Flagship model of five partners’ (Rugman and D’Cruz, 2003), and the model of ‘the firm and its web of relational actors’ (De Wit, Meyer, 1998). As a result of the paper, theoretically based and empirically tested IKEA business system model is presented. IKEA is one of the worldwide MCN companies in furniture industry, which has its own specific vertically based business system with structutally controled and standartisized subsystems . The paper presents the deep case study and analysis of IKEA.