Minicase
Innovation at IKEA
Redecorating and renovating have become a popular international pastime. In a world facing persistent terrorist alerts and lagging economies, more and more people are opting to stay home and make their homes safe havens. This phenomenon has contributed tremendously to the success of IKEA, the Swedish home furniture giant. In monetary terms alone, that success is measured by sales for the fiscal year ending in 2016 totaling 28.5 billion eurosthats a lot of furniture!
Much of IKEAs success can be attributed to its founder, Ingvar Kamprad. Kamprad used graduation money to start IKEA in the small Swedish village where he was born. He started off selling belt buckles, pens, and watcheswhatever residents in the small local village of Agunnaryd needed. Eventually Kamprad moved on to selling furniture. One day in 1952, while struggling to fit a large table in a small car, one of Kamprads employees came up with the idea that changed the furniture industry foreverhe decided to remove the legs. IKEAs flat-pack and self-assembly methodology was born, and it rocketed the company past the competition. After that [table] followed a whole series of other self-assembled furniture, and by 1956 the concept was more or less systematized, writes Kamprad.
Kamprad resigned from his role at IKEA in 2013, and for the seventy years he served at IKEA he was dedicated to maintaining the corporate culture he helped define since the companys founding in 1943. Despite fabulous wealth he continues to be a simple and frugal manhis idea of a luxury vacation is riding his bike. He is fiercely cost conscious and, even though his personal wealth has been estimated in the billions, he refuses to fly first class. He values human interaction above all, and, even though retired, he still visits IKEA stores regularly to keep tabs on what is going on where the business really happens.
The culture at IKEA is a culture closely connected with Kamprads simple Swedish farm roots. It is a culture that strives to create a better everyday for the many people. IKEA supports this culture by
· Hiring co-workers (IKEA prefers the word co-workers to employees) who are supportive and work well in teams
· Expecting co-workers to look for innovative, better ways of doing things in every aspect of their work
· Respecting co-workers and their views
· Establishing mutual objectives and working tirelessly to realize them
· Making cost consciousness part of everything they do from improving processes for production to purchasing wisely to traveling cost-effectively
· Avoiding complicated solutionssimplicity is a strong part of the IKEA culture
· Leading by example, so IKEA leaders are expected to pitch in when needed and to create a good working environment
· Believing that a diverse workforce strengthens the company overall
542
What is it like to work at IKEA? Heres how some IKEA employees describe the experience:
· Its about moving; we dont need to run faster but to find better ways; smarter ways to do it.
· If you want to be a superstar or one-man show, this isnt the place to come and do that.
· This isnt a place to work for the faint-at-heart.
· You need to be down to earth and know why you want to make a career within IKEA.
Does that sound like an organization youd like to be part of? The IKEA culture is one that resonates for many. The buildings are easy to identifythe giant blue and gold warehouses that resemble oversized Swedish flags are hard to miss. Millions of customers browse through the Klippan sofas and Palbo footstools (Nordic names are given to all IKEA products) in the stark, dimly lit warehouses. The surroundings may not be lavish and the service may be minimal, but customers keep going back not just for the bargains but to experience the IKEA culture as well.
1. Which type (or types) of organizational culture do you think are dominant at IKEA?
2. Consider Scheins four key organizational culture factors as described in
Highlight 13.6
. What examples can you identify within the IKEA organization that contribute to the companys strong corporate culture?
3. Do you think IKEAs distinctive culture will continue to be a competitive advantage in the years to come? If so, what do you think are ways it can be sustained and reinforced?
Sources:
http://archive.cinweekly.com/content/2004/03/24/0324travelikea.asp
;
http://www.azcentral.com/home/design/articles/0812ikea12.html
;
http://strategis.ic.gc.ca/epic/internet/inimr-ri.nsf/en/gr-76894e.html
;
http://www.geocities.com/TimesSquare/1848/ikea.html
;
http://www.sustainability.com/news/press-room/JE-teflon-shield-Mar01.asp?popup=1
;
http://www.benefitnews.com/retire/detail.cfm?id=345
;
https://www.tutor2u.net/business/blog/would-you-fit-into-the-organisational-culture-at-ikea
Minicase
Innovation at IKEA
Redecorating and renovating have become a popular international pastime. In a world
facing persistent terrorist alerts and laggi
ng economies, more and more people are
opting to stay home and make their homes safe havens. This phenomenon has
contributed tremendously to the success of IKEA, the Swedish home furniture giant. In
monetary terms alone, that success is measured by sales f
or the fiscal year ending in
2016 totaling 28.5 billion euros
thats a lot of furniture!
Much of IKEAs success can be attributed to its founder, Ingvar Kamprad. Kamprad
used graduation money to start IKEA in the small Swedish village where he was born.
He
started off selling belt buckles, pens, and watches
whatever residents in the small
local village of Agunnaryd needed. Eventually Kamprad moved on to selling furniture.
One day in 1952, while struggling to fit a large table in a small car, one of Kamprad
s
employees came up with the idea that changed the furniture industry forever
he
decided to remove the legs. IKEAs flat
pack and self
assembly methodology was born,
and it rocketed the company past the competition. After that [table] followed a whole
ser
ies of other self
assembled furniture, and by 1956 the concept was more or less
systematized, writes Kamprad.
Kamprad resigned from his role at IKEA in 2013, and for the seventy years he served
at IKEA he was dedicated to maintaining the corporate culture
he helped define since
the companys founding in 1943. Despite fabulous wealth he continues to be a simple
and frugal man
his idea of a luxury vacation is riding his bike. He is fiercely cost
conscious and, even though his personal wealth has been estimat
ed in the billions, he
refuses to fly first class. He values human interaction above all, and, even though
retired, he still visits IKEA stores regularly to keep tabs on what is going on where the
business really happens.
The culture at IKEA is a culture c
losely connected with Kamprads simple Swedish
farm roots. It is a culture that strives to create a better everyday for the many people.
IKEA supports this culture by
·
Hiring co
workers (IKEA prefers the word
co
workers
to
employees
) who are
supportive and work well in teams
·
Expecting co
workers to look for innovative, better ways of doing things in every
aspect of their work
·
Respecting co
workers and their views
·
Establishing mutual objectives and working tirelessly to r
ealize them
·
Making cost consciousness part of everything they do from improving processes
for production to purchasing wisely to traveling cost
effectively
·
Avoiding complicated solutions
simplicity is a strong part of the IKEA culture
Minicase
Innovation at IKEA
Redecorating and renovating have become a popular international pastime. In a world
facing persistent terrorist alerts and lagging economies, more and more people are
opting to stay home and make their homes safe havens. This phenomenon has
contributed tremendously to the success of IKEA, the Swedish home furniture giant. In
monetary terms alone, that success is measured by sales for the fiscal year ending in
2016 totaling 28.5 billion eurosthats a lot of furniture!
Much of IKEAs success can be attributed to its founder, Ingvar Kamprad. Kamprad
used graduation money to start IKEA in the small Swedish village where he was born.
He started off selling belt buckles, pens, and watcheswhatever residents in the small
local village of Agunnaryd needed. Eventually Kamprad moved on to selling furniture.
One day in 1952, while struggling to fit a large table in a small car, one of Kamprads
employees came up with the idea that changed the furniture industry foreverhe
decided to remove the legs. IKEAs flat-pack and self-assembly methodology was born,
and it rocketed the company past the competition. After that [table] followed a whole
series of other self-assembled furniture, and by 1956 the concept was more or less
systematized, writes Kamprad.
Kamprad resigned from his role at IKEA in 2013, and for the seventy years he served
at IKEA he was dedicated to maintaining the corporate culture he helped define since
the companys founding in 1943. Despite fabulous wealth he continues to be a simple
and frugal manhis idea of a luxury vacation is riding his bike. He is fiercely cost
conscious and, even though his personal wealth has been estimated in the billions, he
refuses to fly first class. He values human interaction above all, and, even though
retired, he still visits IKEA stores regularly to keep tabs on what is going on where the
business really happens.
The culture at IKEA is a culture closely connected with Kamprads simple Swedish
farm roots. It is a culture that strives to create a better everyday for the many people.
IKEA supports this culture by
? Hiring co-workers (IKEA prefers the word co-workers to employees) who are
supportive and work well in teams
? Expecting co-workers to look for innovative, better ways of doing things in every
aspect of their work
? Respecting co-workers and their views
? Establishing mutual objectives and working tirelessly to realize them
? Making cost consciousness part of everything they do from improving processes
for production to purchasing wisely to traveling cost-effectively
? Avoiding complicated solutionssimplicity is a strong part of the IKEA culture
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