Essay On IKEA

IKEAs organizational culture and reputation is known around the world. The organization is built in a culture of hearts and IKEA values; hard work, tough challenges and common sense. IKEA is built on the philosophy that all stakeholders play a vital part in the company’s success. The customer group of stakeholders are provided with low cost furniture which meets their needs. Good customer service and reliable products creates brand loyalty which results in customer satisfaction and repeat purchases.

Cost and revenue structure of the company Geographic sales and purchases diversification IKEA stores have been present in five big areas in the world which are North America, South America, Europe, Russia, Asia and Australia as of 31 December, 2014. IKEA group have stores located in 42 countries which include Australia, China, Taiwan, Malaysia, Singapore, Denmark, France, Germany and etc. IKEA group sell their products in to these 42 countries with their domestic currencies such as Australian Dollar (AUD), Yuan (RMB), Taiwan New Dollar (TWD), Malaysian Ringgit (MYR), Singapore Dollar (SGD), Danish Krone (DKK), Euro (EUR) and etc. The reason of using domestic currency is because this is easier for the customers to buy IKEA products in their country.

4. What is IKEA’s strategy toward suppliers? How important is this strategy to IKEA’s success?

1 INTRODUCTION IKEA was founded by Ingvar Kamprad in Sweden in 1943. As a global furniture retailer, it operates in 47 countries of Europe, Asia, North America, Oceania and Africa and has 164 thousand co-workers. IKEA provides modern designed furniture with affordable prices, which brought 30.1 billion Euro profit to IKEA as of August 2014 (IKEA, website). This study aims to analyse the management of IKEA’s suppliers, inventory and quality and understand how these three elements contribute to the achievement of IKEA’s objective. First of all, the bargaining power of supplier and substitutes will be discussed. This study will also explain the approach used by IKEA to manage inventory and quality and examine their effectiveness. Lastly, the relevance of the information utilised for the research to theoretical knowledge of suppliers, inventory and quality will be analysed.

Case Assignment #2: Ikea 1. How was Ikea successful in entering the furniture retailing market in Sweden? Ikea was successful in entering the furniture retail market in Sweden because it capitalized on good timing and original ideas. At the time of Ikeas initial phases, furniture prices in Sweden rose 41% faster than other household goods between 1935 and 1946. Ingvar Kamprad, the founder of Ikea Saw this as a great opportunity to offer quality furniture at a much lower price than other retailers, that the majority of people can actually afford. Ikea was also able to overcome adversity through creativity in business processes. When initially traditional retailers fought against Ikea’s ideas and banned them from selling at the Stockholm Trade Fair, the took orders or got names of customers in order to sell to them after the event. On another occasion, they overcame trouble with the retail cartel by establishing manufacturing sources in Poland instead of Sweden. This actually resulted in lower costs for Ikea and therefore allowed them to sell products at even lower prices than before. They also differentiated themselves from other companies not only through price but also through store design and location. Instead of locating in downtown hubs, Ikea set up its stores in areas with a lot of land to provide ample parking space which went hand in hand with their concept of cash-and-carry retailing. Furthermore, within the stores established many basic practices, such as wide

Introduction to IKEA IKEA is privately owned international home product retailer that sells furniture accessories and kitchen item in their retail stores around the world. The company which took the initiative furniture at affordable and cheap prices, is now the world’s largest furniture retailer.

| | | | | IKEAMGT301 CSR Case Study Report | | Table of Contents Executive Summary 1 Introduction 2 Company History and Overview 3 Vision, Objective and Values 4 Meaning of Sustainability to IKEA 5 CSR Issues and Criticism 6 Why IKEA sought to address the issues through CSR 12 How IKEA sought to address the issues through CSR 13 The Natural Step 15 Public Response 17 Cultural Change Within IKEA 18 Evaluation of the Strategic

To begin with, IKEA is an established global brand which has managed to attract main consumer groups, while with its vision "to create a better everyday life for many people", it promises and offers the same quality and variety around the world. Moving on, it is reputed for its strong concept and its "democratic design", since it offers a big variety of

IKEA is a company that is well known globally for its low prices and innovatively designed furniture. The company’s owner Ingvar Kamprad formed IKEA in 1943. (Daft, 2013, p. 287) Originally created in Sweden the company is now globally located worldwide. Amidst its formation it has succeeded in strategically in the success of its internal and external environment, organizational structure, innovation, technology, and organizational culture. As with any company there is always room for improvement. My paper will give detailed information pertaining to IKEA and also suggest recommendations for improvement.

They key success is their FLAT PACK. - Value to customers: Ikea is implanted over the world and so you can always find their product everywhere.

With the purpose of further reduction of the price in the global scope, Ikea adjust its construction layout worldwide, it has nearly 2,000 home suppliers (including Ikea self-owned plant), and vendors will deliver various products from all over the world to the international central repository, followed by delivered from the midpoint to the malls for sale. Ikea also constantly adjust its manufacture orders in the global circulation owing to a variety of product sales with continuous changes,

Report To: Carol George From: Fangyi Shao Subject: IKEA case study Date: 24. Apr. 2009 1. Introduction IKEA is the world’s largest furniture manufacturer who offers a wide range of well-designed, functional home furnishing products at a low price that many people can afford it. IKEA’s mission statement describes the purpose and distinctive advantages of

Executive Summary The key intentions of this report to explain IKEA business strategy, Stakeholders, goals of organisations, vision, mission and management functions overview of the management system of the company. Having the vision and mission statement all ready, it helps the company to boost its confidence and soon accomplish what they aimed for. Stakeholders play a main role in making sure the company perform well enough. The main reason this report made for to analyse how is this managing strategic will affect the company in the future.

Companies face a multitude of challenges when it comes to Supply Chain management ranging from profitability and cost management to visibility and customer satisfaction. With the increased awareness of environmental practices, there is an expectation that businesses should evolve to be more environmentally conscious. As stated from a 1987 Brundtland Report known as “Our Common Future”, (WCED, 1987) sustainable development is one that “meets the needs of the present without compromising the ability of future generations to meet their own needs.” The influence of environmental performance is a growing decision criteria for customers in the consumption of products/services. This is evident from a survey conducted by the Natural Marketing Institute (Kaiser, 2008) which reveals that 30 percent of American consumers are willing to pay 20 percent more for products made in an environmentally friendly and sustainable way.

Read more: http://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-planning/introduction.html#ixzz3pitRBuhs Under Creative Commons License: Attribution Non-Commercial Share Alike | three Aims: The overall objective of inter IKEA group is to secure successive and improvement and a long life of the IKEA idea. That will