Ikea Case Study

Mujirushi Ryohin or MUJI is a Japanese retail company founded in Japan in 1980 (MUJI Europe, 2015) which sells a wide category of household and consumer goods. From clothes to bed, everything MUJI sells have its own design called minimalism, emphasis on recycling, avoidance of waste in production and packing, and there are no logos on the MUJI products which is called no-logo or “no-brand” policy. Since its goods design and high quality are welcomed by not just national customers but also lots of foreign customers, MUJI now has 517 stores operating in 23 countries as of February 2013. MUJI is a multinational cooperation, but market in Japan is still have the high percent in operations, because in its 517 stores, there are 262 stores in Japan, this essay will talk about how human resource management contribute to MUJI’s operation in Japan.

This paper aims to demonstrate a detailed description of the elements of ‘IKEA’ company based on its famous name in the furniture industry.

IKEA is an internationally known home furnishing retailer that has grown rapidly since it was founded in 1943 and is renowned around the world for its Scandinavian style. The majority of IKEA 's furniture is flat-pack, ready to be assembled by the consumer that helps in the reduction of costs and packaging. Moreover; IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range of option is available in all IKEA stores and customers can also order much of these items online through IKEA’s website (Frynas & Mellahi, 2011).

As a new director of human resources at The King Company, as director; I am aware that I must play a large role in resolving the organizational issues confronting the company and develop solutions for the functional and managerial issues facing the HR department. Throughout the paper, I will describe the current relationship between organizational strategy and HR activities at The King Company. I will share some of the improvements that are needed to the overall relationship between organizational strategy and HR activities. Then I will express what I believe HR’s role should be in light of low sales numbers and also the fraudulent data. Finally I will share my opinion on what I think needs to be done to improve employee communication methods at King.

IKEA had to start designing more of its furniture in house and found a manufacturer who would produce IKEA-designed furniture. In this process, the manufacturer was in Poland where they found it is 50% cheaper than to manufacture in Sweden, allowing him to cut prices even more. Here the furniture industry continued to evolve with new technology and cost savings.

Hyundai has around 120,000 workers including staff and chiefs. Extensive number of association is utilized techniques to beat the opposition from the contenders. Hyundai consider their workers as human capital. Preparing and improvement is the following principle arrangement has administrative effect on human asset of Hyundai Motor. This spreads not just exercises which enhance work execution furthermore development of identity. It helps during the time spent individual towards development and realization of the potential limits so they get to be great workers as well as great person.

The debate about standardization and adaptation for international markets has continuously attracted more attention from multinational companies for several years. The case of IKEA has however tried to help me in understanding the argument involving these two marketing strategies as applied in the international markets.

In this report I will be looking at the pros and cons to a classical style management and the human relations style management. I will then be looking at Ikeas management style and which areas of each management style could be used to improve the performance of the management team and which areas work and should be retained by Ikea.

The stores have restaurant, childcare facilities and plenty of parking. Customers can drop off their kids at the playroom and have delicious meal when they are tired. All of these not only provide customer with a comfortable shopping environment but also let them make an ‘IKEA trip’ and enjoy the fun of buying. Besides, IKEA’s distinctive show rooms help creating differentiation. Products are strategically placed in different small spaces like rooms which allow customers imaging this furniture in their own home. This makes everything looks more attractive.

The company has gone through many transitions since its inception and in seven years’ time will be a century old. Through systematic planning, implementation, controlling and motorization, Hasbro has an organization of proper management strategies. One of the key pillars that led to the growth and expansion of the company was the human resource element. Hasbro as an organization has had a well-established and coordinated human resource department that has had a positive impact to its growth (Madsen & Trinh, 2015). Research has shown that good relations between the employees and the management defines the future of an organization. Since, they are the driving force of the institution; they are treated with respect and consideration. Departments in the organization have conducted various seminars and trainings at all of their locations for their employees to improve the understanding of their roles. These seminars and trainings are in place to

From the past until present, in order to achieve competitive advantage to compete in turbulence and highly competitive market environment, the one who take control over the organisation should design powerful strategies. To create that strategies, managers need both good understanding in internal and external environment, and effective managerial skill to organise sophisticate works arising in organisational routine systematically. The one who assigned as manager has power to control over company resources which included human being. Human can be considered as one of the most valuable resources in the company because value can be added to them through education and experience. However, human could be considered as the most complicate resource. This is because they have personal needs, ambition, and feeling which are different between one to others. Unlike machines or other type of assets that similarly designed to do specific jobs, stereotype should not be applied to workers and there is no one best way to manage or to control them. In particular, it can be said that one size does not fit all. As the result, this issue could be considered as one of the most wildly discussed topics among managerial scholars. The idea of how to manage and control over human being in the work place start in the period of industrial revolution where the factory trying to maximise their profits through the concept of economy of scale. Human as the resources to produce things has been controlled

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

Although Human Resource Management did begin as a administrative job, advancements in technology has increased a business’s resources to the point of needing this department to take on a more strategic role. The HR Department is or all intend and purposes the center point for the employees needs ranging from - payroll, benefits, vacation, as well as staying up to date with the legal matters. The roles the HR department have always been aimed at meeting the needs of the employee, with a strategic approach, the HR department will be continue to be aimed at meeting the needs of employees, as well ensuring the employees can meet the needs of the company as well.

The case study is to discuss about the different strategy used by IKEA to approach their customers. It is also talking about the localization concept from a global company based on the cultural demand from different countries worldwide. IKEA is also famous for their less expensive furniture, has some other strategies to “reach” the customers based on their needs. 4 Ps concept plays a very important role on IKEA’s success besides the way of shopping which is differ from all other their competitor.

The Human Resources Administration needs to integrate the behavior of their employees to avoid chaos and maintain a balance and order within themselves, as well as the functionality and structure of the organization, the importance of formalized guidelines which direct the action of thought and resolutions of common problems related to the objectives of the organization. Therefore it is essential to establish some guidelines that govern the rights and duties between employers and workers. During this Case Study I will discuss and provide solutions for the five issues affecting the retail store discussed in module 5 concerning the lack of human resource tools such as the lack of the Human Resource systems across the organization to provide uniformity, recorded log, delayed in reports, communication, and lack of accountability.