IKEA is a home furnishings company founded in Sweden, in 1943. Started, its business initially is to selling consumer products such as pens, wallet and jewellery. Five years later, they decided to include furniture in the range and published in the now-iconic IKEA catalogue. IKEA provide showroom and allowing customers to experience the well-designed with low cost furnishings for themselves. Therefore, the business begins to design and make a piece of furniture to fit into a car, the concept of the flat pack and self-assembled furniture was born. IKEA current strategies has always been to design and develop products based on consumers everyday needs, keeping prices low and providing functional, reliable furnishings and solutions. Sustainability has become a root of IKEA’s strategy throughout its evolution. In 2012, they launched People and Planet Positive sustainability strategy which approach to achieving positive social and environmental impacts. These strategies has brings elements of values and drive innovation and transform the IKEA business. This will also strengthen IKEA’s competitiveness by securing long-term access to important raw materials and energy supplies, maintaining and developing its supplier base, developing relationships with co-workers and customers, and increasing market share.
In this current society, waking up early morning to get ready for work has becoming a very huge part of people daily life. Nowadays, people are become busy and lazy since they barely have time to cook for themselves or for their families. Therefore, this will lead to the increasing number of fast food restaurants such as McDonald’s, Pizza Hut, subways or others. Those fast food are cheap, convenient and the taste is really good. This caused people like to eat fast food on this current stage. According to the article by Molina (2018), CDC survey has found out that there is more than 1 in 3 adults eat fast food on a given day. However, fast food has impacting people health. There are several research studies have shown that, fast foods and processed foods have increased childhood obesity, heart diseases and diabetes or other chronic diseases. There are over 6 billion pounds of fresh produce such as fruits, vegetables that are left unharvested or unsold in every single year stated by Schwartz (2015). IKEA planning to produce veggie products such as veggie burger, hot dog or fruits soft drinks to replace the soft drinks with high sugar level which affected people’s health. Firstly, IKEA conducted their new food product development process. Only the elements of new product design that were possible to be carried out in laboratory settings were shown. Furthermore, food product definitions and classifications were presented. The whole process of products containing the development of recipe, sensory analysis, microbiological tests, issues connected with government and elements of marketing plan. As a outcome of the food product development process the prototype of dressing was created. Its photo is to be found at the end of the study. After the confirmation of microbiological test and the market studies, the product can only be put into production. In addition, the possibilities are endless when innovating with veggies, and chefs are discovering some vegetables lend themselves to even more creativity and versatility than animal proteins. Potatoes, cauliflower and mushrooms, for example, are blank canvases for flavour and offer a variety of textural options. The produce industry will need to meet consumer demand for convenience and innovation by offering value-added vegetables in exciting formats that replicate familiar flavour for example, consider spiralized vegetables, cauli rice and crinkle cut fresh potatoes. The advantage of the new product is to help reducing the waste of vegetables and fruits which can gaining people’s health. Furthermore, it can help company to reduce operating cost through the R;D processes. An article by Garfield (2018), many people has shown a growing interest in healthier fast food that incorporates more low-calorie ingredients and fresh produce while remaining convenient and affordable. IKEA has found out that, new healthier fast food chains are seizing the opportunity to complete the legacy brands creating low-calories menus for similar prices. These new chains are regional, but they are growing in popularity in the current age. Thus, IKEA has aims to create new futuristic technology to encourage people use advance technology system such as touch screen machine to create their own fruits soft drinks and veggie foods. The new technology can also show the calories that has made by the consumer. This technology can help to improve the effectiveness of products and make processes to be more efficiency. However, there is also a challenge of technology IKEA may face in developing on the new products such as computer hacking or manufacturing of destruction. IKEA is to ensure that it is their servant and not their master. In this current society, most of the younger people and kids would like to eat fast food such as pizza hut, french fries, bubble teas or others. All these lifestyle preferences may become culture factors that affecting the company globalizing on their new products.
Nowadays, rising global average temperature is associated with widespread changes in weather patterns. Researcher studies indicate that extreme weather events such as heat waves and large storm are likely become more frequent or more intense with human-induced climate change. According to the article by Hausfather (2017), its shows that human emissions and activities have caused around 100% of the warming observed since 1950. Human driven changes in land use and land cover such as urbanization, and shifts in vegetation patterns also alter the climate, resulting in changes to the reflectivity of the Earth surface, emissions from burning forests, urban heat island effects and changes in the natural water cycle. However, earth providing resources such as water, food, oxygen and all other resources to people. In addition, earth is also the only natural living entity and home people have and it ground. Thus, taking care of earth has become important to people well-being. According to the article by Andrews (2018), it stated that plastic has impacted human health. Different plastics spread throughout the ocean. As Styrofoam breaks into smaller parts, polystyrene components in it sink lower in the ocean, so that the pollutant spreads throughout the sea column. IKEA has move comes amid growing concern over plastic pollution in the world’s oceans, where it can harm and kill wildlife such as seabirds, fish or turtles. IKEA is already planning to phase out virgin oil-based plastic in its product, and use renewable materials or recycled plastic to replace. However, the company also aims to only use renewable and recycled materials in everything it sells including foods. They will offer solar panels in more stores, sell more plant-based food, buy 100% renewable energy by 2020, and will offer zero-emissions home deliveries by 2025. It’s reducing emissions in line with the goals of the Paris agreement, with plans to become climate positive by 2030 meaning that it will reduce emissions beyond the amount its value chain creates. IKEA is set up their restaurants commit to following certain criteria to ensure that they are helping to reduce their impact on the ocean and other water bodies, and also involved in conservation practices. There are some activities such as no beverages sold in plastic bottles, paper straws provided reusable tableware is used for onsite dining and disposable utensils for takeout food are provided only upon request. Lastly, vegetarian food options are offered on a regular basis and all seafood must be a ‘best choice’ or ‘good alternative’ as defined by seafood watch or certified as sustainable. This can help to protect of animals and reducing the health diseases such as obesity, diabetes or other chronic diseases.
In conclusion, this essay examined that globalization has become a powerful force in the business environment. Globalization is a process of how goods, services, people, capital and information move or is transferred across the world in a seamless manner. Due to the globalization, the world has become increasingly interconnected. Thus, it might become one marketplace for companies to conduct their business such as creating activities to explore and make the world become more environment friendly. Considering the result as a final stand, environment friendly has become a must on future globalization market that companies should follow due to the rising global average. The new products might help the company increasing long-term benefits, market shares, reducing environment waste, costs and health diseases cause on people.