Ikea Organizational Development Paper:

1877 Words Dec 7th, 2012 8 Pages
Organizational Development Paper:
IKEA
* Joe Purdoff
CMB 533
Human Resource Strategies
June 18, 2012

IKEA is at the top of the world’s leading furniture retailers, and has set new standards for competitiveness in household furnishings. The company has achieved this position by redefining the roles and interactions between the firm and its customers. Founded in 1943 by a poor Swedish farmer named Ingvar Kamprad, IKEA is now one of the largest furniture retailers in the world. From its inception, Kamprad wanted to create cheap, quality furniture that everyone could afford. This formula led to IKEA’s early success in Sweden and has carried over until today. IKEA's positive HR policies have supported a strong and
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It also required a bit of HR management change to keep the new labor force happy. One change that took place at that time was that the organization flattened their hierarchy even more. All employees are “co-workers” and they strive to treat all employees the same. This can be seen in the fact that there no incentive programs at IKEA and managers receive no special perks. These changes lead to IKEA becoming the fastest growing furniture retailer, and the 14th largest furniture retailer overall in the United States. By examining IKEA’s marketing strategy, some recommendations have been made that might lead to IKEA’s continued growth and success. In furniture sales, there are two general strategies: the low-end and the high-end. The low-end offers cheap furniture marketed to people such as college students who have a small budget. The cheap furniture is also displayed in poorly lit showrooms that offer little to no customer service. High-end furniture stores compete on quality and service. The high-end offers a large selection in each style and sub-style of furniture, which results in the showroom having a large inventory. The broad, variety strategy at IKEA virtually guarantees that a customer’s preferred style will be available. Sales associates are trained to educate their customers; such as explaining the life spans of different materials.
IKEA has been able to identify product line opportunities

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