ABSTRACT
The recommended tool for process development is the activity system, an approach developed by Michael Porter of the Harvard Business School. In 2001, Harvard University and the Harvard Business School created the Institute for Strategy and Competitiveness to further Professor Porter's prolific work. Activity systems are suitable for application no matter where a company is located in the retail supply chain–retailer, distributor, original equipment manufacturer (OEM), or supplier to an OEM. The case study company, IKEA, built its business model over a long period beginning in the late 1940s. Over time, it has become a leader in its niche by the choices made in that process. Activity systems are a more recent planning innovation, so IKEA did not employ the tool while building the business. The activity system structure provides such a road map. This will improve the chances that the linkages between strategy and operations are strong, with no needed supply chain process omitted from the design.
