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IKEA - A unique corporate culture!

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by albaraa ashkan on 15 April 2010

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Transcript of IKEA - A unique corporate culture!

Overview History of IKEA! IKEA Stores Today Work Force The "IKEA" way! IKEA and Corporate Social Responsibility First store! What is the IKEA way? Q. Interpriting culture! How? A. Seven Aspects of Organizational Culture!

1. Rirtes and Ceremonies
2. Stories and Myths
3. Symbols
4. Organization Structures
5. Power Relationships
6. Control Systems
7. Organizational Culture Recomendation Name Origins? Ingvar Kamprad IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish (Agunnaryd, in Småland, South Sweden) IKEA
Ingvar
Kampar
Elmtaryd
Agunnaryd Ingvar Kampard Social Responsibility -Most of its projects were centered on children.

-Aug 2000, IKEA purchased carpets from India and initiated the Child Rights Program in India in association with UNICEF.

-The project was started in the Indian state of Uttar Pradesh (UP).

-The aim of the project was to prevent child labor in 'the carpet belt' of UP, by addressing root causes such as poverty, illiteracy and ill health.

-The project was started in nearly 200 villages with a population of more than 400,000 people. Fostery -According to IKEA, about 75% of the raw materials for its furniture, catalogs and packaging came from timber.

-Conservation of forests was an important environmental issue.

- IKEA worked with groups such as "Greenpeace" to formulate policies
for sustainable forestry.

-IKEA was also a member of the Forest Stewardship Council (FSC).

-IKEA banned the usage of timber from intact natural forests, except those forests that had been certified by the FSC in its products.

-IKEA's ultimate aim was to source all its timber from well-managed forests Waste Management -Reducing the waste it generated and the management of that waste were important issues for IKEA.

-IKEA focused on recycling wastes, repairing damaged products and reusing packaging material.

-Each IKEA store had an 'environmental coordinator' who worked towards waste recycling and energy conservation, and also trained employees on environmental aspects.

- Environmental coordinators organized educational programs for IKEA customers to understand the importance of the environment and to showcase IKEA's contribution in this area.

-Each IKEA store had a separate compactor for collecting non-recyclable waste such as: cardboard and plastic. Once these wastes were segregated, they were sent to the production department to see how they could be reused Energy Conservation -IKEA consumed a huge amount of energy for electricity, heating and air conditioning of its stores and warehouses. The company was trying to consciously reduce its energy consumption.

-In 2003, IKEA launched a 'Kill-a-Watt-Energy Saving Competition.'

-The competition was open to all IKEA stores across the world. IKEA aimed to achieve reduction in energy consumption and also to create awareness among employees regarding electricity costs.

-By the end of the competition, IKEA had saved energy equivalent to providing electricity to 2,000 households, or two IKEA stores for a year.

-The competition was won by the IKEA store at Ho Chi Minn City in Vietnam. This store reduced its electricity consumption by 33%. It did so by installing a system that automatically switched off electrical appliances and shut down air conditioning systems after working hours.

-IKEA also made use of alternative energy sources to obtain electricity. The store in Pittsburgh, US had solar electric panels on the roof. Aiding UNICEF! On the 23rd of February 2009 at the ECOSOC event in New York, UNICEF announced that IKEA Social Initiative has become the agency’s largest corporate partner, with total commitments of more than 180 million USD A. keeping the same coporate culture! it has proven its success? B. To develop even further success in the international arena IKEA needs to adapt to the local culture atleast in part. Main Points of this Presentation!

- IKEA overview
- Key dates in IKEA's History
- The "IKEA" way
- IKEA and Corporate Social Responsibility (CSR)
- Recomendations
The IKEA story begins in 1926 when founder Ingvar Kamprad is born in Småland in southern Sweden. He is raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. 1920's:

At the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and re-sell them individually at a very low price but still make a good profit. From matches he expands to selling flower seeds, greeting cards, Christmas tree decorations, and later pencils and ball-point pens. 1943: IKEA is founded by Ingvar Kamprad!

When Ingvar Kamprad is 17, his father gives him money as a reward for succeeding in his studies. He uses it to establish his own business. The name IKEA is formed from the founder's initials (I.K.) plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up. IKEA originally sells pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings - meeting needs with products at reduced prices. 1948: Furniture is introduced into the IKEA range!

The furniture is produced by local manufacturers in the forests close to Ingvar Kamprad's home. The response is positive and the line expands. 1956:Designing furniture for flat packs and self-assembly!

The decision for IKEA to design its own furniture stems, ironically from competitors pressure for suppliers to boycott IKEA. Exploration of flat packaging begins when one of the first IKEA co-workers removes the legs of the standard tables so that it will fit into a car and avoid damage during transit. After this discovery flat packs and self assembly become part of the concept. 1960: The first IKEA restaurant

The first IKEA restaurant opens in the IKEA store in Älmhult, Sweden. Internatiaonal!

1963: Oslo, Norway
1965: Stockholm, Sweden
1969: Denmark
1985: IKEA arrives in the USA in Philadelphia.
1990: The first environmental policy at IKEA!

The IKEA Group develops an environmental policy to ensure that the company and its co-workers take environmental responsibility for all activities conducted within its business. The IKEA Group has 123,000 co-workers spread across functions such as: purchasing, distribution, whole-sale, range, retail and support functions How do interpret Culture?
-Daft's seven points:

1. Rites and Ceremonies
2. Stories and Myths
3. Symbols
4. Organization Structures
5. Power Relationships
6. Control Systems
7. Organizational Culture Ingvar's 9 points Testement of a Furniture Dealer! Leadership Style? 1. The product range and identity
2. The IKEA Spirit - strong and living reality
3. Profit gives us resources
4. Reaching good results with small means
5. Simplicity is a virtue
6. Doing it a different way (It was written upside down)
7. Concentration - important to our success
8. Taking responsibility - a privilege
9. Most things still remain to be done - A glorious future! As of August 2009, the chain has 301 stores in 37 countries! Jean-Louis Baillot
-General Director IKEA, France
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