Global Home-Furnishing Retailers: IKEA

1615 WordsJul 13, 20187 Pages
Introduction Known as one the largest global home-furnishing retailers, IKEA currently has over 139,000 employees located in 53 countries and generates roughly 39.3 billion US dollars in annual sales (IKEA, 2014). Ingvar Kamprad began selling different types of items and founded the company in Agunnaryd, Sweden in 1943. Kamprad found that his greatest entrepreneurial opportunity was in furniture. Many households at that time were changing from receiving furniture that was handed down to desiring new, inexpensive, and stylish furniture. Kamprad was able to find a business opportunity to change the current social situation since a lot of the furniture was priced high at the time. He wanted to be able to offer his customers a wide…show more content…
Ten stores had opened up in West Germany by 1979 and the company continued to open several stores around Europe through the 1980s. From there, stores began opening up worldwide. IKEA opened its first store in Canada in 1979 and then began moving into the United States, which seemed to be the largest furniture market in the world. In 1987, IKEA began opening stores in the United Kingdom. Its first store was in London and was the largest home furnishing store in the country Management Processes and Effectiveness Kamprad used his personal view on life to create the management processes for IKEA. He felt IKEA’s spirit contained enthusiasm, simplicity in behavior, cost consciousness, constant will to renew and humbleness before the task. A clear management style and organization culture was shaped for all stores around the world. The overall environment was open, informal and relaxed. This type of environment put employees at ease but also placed more stress on the management team to perform their best. It was stressed that the processes for management be simple yet detailed. Managers were to work in warehouses, stores and showrooms to have a full understanding of the companies operations. Cost consciousness was another process to be followed by management. They were not to waste resources and they were to ensure the price tag of new ideas were kept to a minimum. Kamprad felt that by
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