...OVERVIEW OF IKEA HISTORY Ingvar Kamprad: The founder of IKEA, Ingvar Kamprad, began his business career as a young boy selling matches purchased in bulk individually for a profit to his neighbors near Agunnaryd. As his business grew, he expanded to selling fish, seeds, Christmas decorations and eventually, pencils and ball-point pens which were a new phenomenon in 1935. He was very clever in utilizing his resources - he delivered his goods by bicycle, and later used the local milk delivery vehicle to make deliveries. IKEA: In 1943, with a gift from his father, Ingvar established his business, using his initials, Ingvar Kamprad, the name of the farm on which he was born, Elmtaryd and the village nearby, Agunnaryd for the acronym. At this time, he was selling everything from pens and wallets to watches and nylon stockings by going door to door and selling directly to his customers. By 1945, the first advertisements for IKEA began showing up in local newspapers and he had developed a rudimentary catalog. IKEA Store: The first full IKEA store opened in Älmhult in 1958. With 6700 m2 (72,118 ft2), it was the largest furniture display in all of Scandinavia. In 1963, the first IKEA store outside Sweden opened near Oslo in Norway, followed by the flagship store in Stockholm - a whopping 45,800 m2 (492,987 ft2) circular store inspired by the Guggenheim Museum in New York City. The success of this store, and difficulties in serving customers due to an overfilled capacity led to...
Words: 2545 - Pages: 11
...COMPANY PROFILE Ikea Group REFERENCE CODE: 6878C795-4BCB-4C85-A319-6F33C508FD80 PUBLICATION DATE: 14 Aug 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Ikea Group TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Ikea Group © MarketLine Page 2 Ikea Group Company Overview COMPANY OVERVIEW Ikea Group (Ikea or 'the group') is an international home products retailer. It sells furniture, accessories, and bathroom and kitchen items. Ingka Holding BV, a wholly-owned company by Stichting Ingka Foundation, is the parent company for the Ikea group of companies. The foundation is owned by the Kamprad family. As of August 31, 2013, the group had operations in 43 countries across Europe, North America, Asia and Australia. Ikea is headquartered in Delft, the Netherlands, and employed 135,000 people as of August 31, 2013. The group recorded revenues of E28,506 million (approximately $37,280.1 million) during the financial year ended August 2013 (FY2013), an increase of 3.2% over FY2012. The operating profit of the group was E4,011 million (approximately...
Words: 2518 - Pages: 11
... Explain your answer…………………………………………………………………………………………………………..1 1b - Which specific requirements do potential suppliers of IKEA need to meet in order to be considered as supplier? 3 1c - How does IKEA manage the relationship with selected suppliers to ensure that they perform as expected? 4 2a. - Make a comparison between the three offers described in addendum 2. Present the comparison in a table with three columns. Also include an overview of the total costs per potential service provider for the first year. Based on the comparison, which service provider should Jan de Vries select? Explain your answer. 4 2b - Jan de Vries found proposals quite difficult to compare based on the received information. What should he do differently the next time he asks for an RFQ? Explain your answer. 5 3a - Describe IKEA’s distribution network, i.e., its approach to transport and warehousing (outside of stores). 6 3b - What is the role of customers in IKEA’s logistics both within and outside of stores? What are the consequences of taking this logistics approach for IKEA and for customers? Explain your answers. 7 4b - Describe the business strategy and supply chain strategy of IKEA. In your answer, you should pay attention to: - IKEA’s mission statement and vision; - IKEA’s core values; - The (long term) strategic supply chain decisions that IKEA made. 8 5a - Use a Dupont chart to calculate the Return on Assets (ROA), based on the fictional financial information included...
Words: 6258 - Pages: 26
...[pic] Operation Management Assignment Task 1 4 Vs of IKEA FURNITURE Name Saqib Ali Enrolment ID 30113460 Submitted to Dr Maria Zenaida Mullin Submission date 14 Aug, 2015 IKEA FURNITURE OUTLETS Executive summary Brief summary findings It’s difficult to manage furniture store like IKEA because lot of employees are required to run the operations smoothly and it’s a big problem to manage bigger workforce, so that’s why it’s one of the biggest issue for the IKEA furniture to handle the big workforce. IKEA furniture retail stores having very big and complicated store structure, which is also one of main problem to organize, in any worst case like fire into the store it’s difficult to move everyone out of the retail store. And big furniture Retail stores like IKEA also having a lot of products like chairs, beds, sofas etc. So in case, sales of the products gone slow all of the product gone dusty and its difficult to maintain all furniture clean and in good condition. (Furniture World 2012). Conclusion After analysing all the operation of the IKEA furniture, I am able to find out IKEA furniture emphasis a lot on efficiency and effectiveness of its operation management. The company has implemented its operations management strategy in all of its business process and operations to maintain low cost model. IKEA furniture’s is one of the best examples of the corporations who concentrate high effective operation management. ...
Words: 1861 - Pages: 8
...well known company – IKEA. Before I go any further I am going to shortly describe its products and concept. IKEA is a Swedish company founded in 1943 is multinational group that designs and sells ready-to-assemble furniture (beds, chairs, desks) as well as traditional Swedish food. IKEA owns stores in 43 countries but I am going to focus only on Denmark. The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value - always with sustainability in mind. As it a large company it is not always easy to keep up with its service and possible mistakes can occur and therefore it is needed to take into account the competitiveness. 1.1 Problem Statement I am going to answer the following questions and statement; Identification - what are the gaps within service sector in IKEA? Threat – How does IKEA deal with competitiveness in Denmark? Service level –I am going to give suggestions how service could be applied to customers! Methodology In order to complete the task I was given I have to find many kind of detailed information about the company so I can give the answers and analysis of problems that I have stated. IKEA is a large company which give easily access to wide range of information for many kind of topics given. 1.2 An overview of competitiveness First I will have look into competitiveness in IKEA and to do so I must...
Words: 1943 - Pages: 8
...------------------------------------------------- IKEA Entering Russia Case Presentation Summary BMKT507 – Principles of International Marketing Seminar Tutor: Dr Nathan Subramanian By James Whelan, Emmanouil Siontas, Marta Okonska, Ligia Moreno Soares & Henning Meyer March 2012 Westminster Business School I. General Overview * Leading home furnishing company with more than 200 stores in 32 countries and a total of 84,000 employees. * Entered Russia in 1991 - first store did not open until 2000. * Move to Russia seen as a long-term investments by IKEA’s management * All stores are fully owned ventures by IKEA II. IKEA’s entry strategy in Russia – Adaption or Standardisation? * The company made the Russian consumer buy its products as a necessity * Long-term vision gave the flexibility required from IKEA to “invent” a market gap that was to be filled by them. * Adapted to the market they entered, something that would make the company limit the distance from the pulse of the Russian reality. III. How did IKEA change its market entry strategy to enter an emerging market? * No special market research was carried out before setting up the first store – Market research in emerging markets only gives a snapshot of the current market situation; Market and consumer behaviour as well as market structures can change rapidly in emerging markets * Since IKEA considered Russia a long-term investment, relatively...
Words: 282 - Pages: 2
...------------------------------------------------- INGVAR KAMPRAD: AN OVERVIEW OF HIS LEADERSHIP Ingvar Feodor Kamprad (born on 30 March 1926) is a Swedish business magnate. IKEA was established in 1943 by a 17-year-old Ingvar Kamprad in Sweden. In 1948, Kamprad diversified his portfolio, adding furniture. The acronym IKEA is made up of the initials of his name (Ingvar Kamprad) plus those of Elmtaryd, the family farm where he was born, and the nearby village Agunnaryd. Mr. Kamprad started off by buying matches in bulk from Stockholm and further selling them at a fair price, but with a good profit. He reinvested his profits and expanded the business to include fish seeds, Christmas tree decorations and pens and pencils, with these experiences, he founded IKEA with the reward money that he received from his father, for doing well in academics. IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds and desks, appliances and home accessories, and is the world's largest furniture retailer. In 2010, Mr. Kampard was named the 11th richest person with an estimated wealth of U.S. $23 billion by Forbes magazine Ingvar Kamprad is the perfect example of a charismatic and democratic leader. IKEA was founded as a pure family business, and till today IKEA’s values are based on the family business concept. A family business has special features that clearly depict its business model and culture, when compared to other...
Words: 520 - Pages: 3
...Export IKEA furniture products to Egypt Instructor: Bonnie Heineman Wolfe MBA 617: Import Export Management Pinarath Sinluksanathip Munkh Orgil Zorigoo Funmi Ogunwale Nasser Madini Samuel Sandeep Trang Huynh December 3, 2012 CONTENT I. Executive Summary II. Introduction III. Product background analysis IV. Egypt Overview V. Barrier to trade of Egypt VI. Market Analysis VII. Marketing Effort VIII. Logistic and Supply Chain analysis 1. Logistic Strength in Egypt: 2. Egypt Facts from Logistics Perspective 3. Creating a Supply Chain and Logistics Strategy a. Determining the Store Location and Capacity b. Transportation and Storage c. Logistic partnerships d. Logistic Enterprise and Measurement 4. Risk Management Plan for Supply Chain and Logistics IX. IKEA Distribution Process to Egypt X. General document requirement for exporting I. Executive Summary IKEA is a home furnishing company with a fully integrated supply chain, including its own industrial groups – Swedwood and Swedspan. The IKEA Group, directly or indirectly, also owns retail centers, always with an IKEA store as unique anchor tenant. The IKEA Group works in four basic areas: range strategy & product development, production, supply and retail. The parent company of the IKEA Group of Companies, INGKA Holding B.V. is owned by Stichting INGKA Foundation in the Netherlands (The case of IKEA...
Words: 6597 - Pages: 27
...Global Sourcing Development at IKEA – a Case Study Paper prepared for the 25th IMP conference Jens Hultman1, Susanne Hertz1, Rhona Johnsen2, Thomas Johnsen2 1: Jönköping International Business School, P.O Box 1026, SE-551 11 SWEDEN E-mail: jens.hultman@ihh.hj.se, susanne.hertz@ihh.hj.se Tel: +46 0(36) 10 10 00 2: Audencia Nantes School of Management, 8 Route de la Joneliere, BP 31222 – 44312 Nantes Cedex 3, France. E-mail: tjohnsen@audencia.com; rjohnsen@audencia.com Tel: + 33 (0)240 37 46 25 Abstract This study explores the dynamic process of global sourcing development through a case study of the Swedish home furnishing giant IKEA and its supply network concerning the PAX wardrobe system. The paper provides a synthesis of the existing global sourcing literature by dividing this growing body of research into three major themes: globalization processes and stages, motives/drivers, and organizational design and management. Moreover, the paper integrates the global sourcing literature with the established literature on the internationalization process of firms. Comparing the existing research on global sourcing and internationalization, we propose two research questions focused on: (1) the ways in which the IKEA global sourcing and supply chain development process resembles a linear stages process, and (2) the principal drivers of the development of global sourcing within IKEA. Relating the findings of the global sourcing process in the case of IKEA, the paper suggests that the...
Words: 11008 - Pages: 45
...ANALYSIS OF IKEA BUSINESS by Student’s Name Code + Course Name Professor’s Name University Name City, State Date Analysis Competitive advantage In modern economies finding the best unique business idea is hard since nearly everything someone is doing to make money. Furniture business is quite competitive and expensive especially when one considers quality and low price over everything. Considering the case of IKEA, making right choices matters and that’s why Kamprad knew exactly the power of high quality, low price, and quick delivery. This paper analyzes IKEA success strategy as well as weaknesses to give a clearer overview of its operation. The cost of the product in comparison with that of a competitor in any market matters. IKEA knew exactly how to balance the cost to be ahead in the competition. Kamprad, the founder of IKEA, concentrated on cost minimization in every aspect of his trading. That’s why he considered buying fabric directly from the textile manufacturer in large quantities. This ensured that there was enough material for a long time manufacturing at past price. This was advantageous since it helped him mitigate the effect of inflations and other production hazards like a strike. The result of such strategy was continuity in production and supply of furniture at a predictable and fair price. This contributed to the fact that IKEA products were 30-50% less than those of competitors. This clearly shows the importance of using high volume...
Words: 2225 - Pages: 9
...6. Assessment Tasks Assessment Task 1: Assessment Task Case Study: IKEA: A Long March to the Far East Schedule Week 4 Performance Criteria: Outcomes Assessed 1.1,2.1,2.2, 4.1 Also addresses some elements of required skills and knowledge as shown in the Assessment Matrix Description: From its humble beginning as a small general retail store in a village situated in the south of Sweden, IKEA has grown into the world's largest furniture retailer with 279 stores in 36 countries today. Specialising in furniture and home decoration, IKEA has an annual turnover of 19.8 billion euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA catalogue is printed in 52 editions with 25 languages, with a global distribution in excess of 160 million copies. IKEA sees the Far Asia as an emerging market still in its infant stage. Its number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai and Hong Kong are very small and comprises a mere 3% of the company's total sales. These stores were expected to be more successful in the near future. IKEA's imminent strategic expansion into this region exemplified its ambitions to dominate this emerging market. This Case Study illustrates how IKEA's ventures into China and Japan are laden with unique marketing challenges which it had not encountered before in other international markets. Read the attached case (Case Study: "IKEA: A Long March to the Far East" - Source: Oxford University Press) and ...
Words: 2881 - Pages: 12
...Module 1 Readings and Assignments Complete the following readings early in the module: Read the overview for Module 1 From the textbook, Operations management: Creating value along the supply chain (7th ed.), read the following chapters: Introduction to operations and supply chain management Project management From the Argosy University online library resources, read: Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. (ProQuest Document ID: 215258436) http://search.proquest.com.libproxy.edmc.edu/docview/215258436?accountid=34899 Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650. Retrieved from http://jom.sagepub.com.libproxy.edmc.edu/content/27/6/643.full.pdf+html Gopalakrishnan, S., Kessler, E. H., & Scillitoe, J. L. (2010). Navigating the innovation landscape: Past research, present practice, and future trends. Organization Management Journal, 7(4), 262–277. doi:10.1057/omj.2010.36 (ProQuest Document ID: 820961459) Long, L.D., Ohsato, A. (2008). Fuzzy critical chain method for project sheduling under resource constraints and uncertainty. International Journal of Project Management, 26(6), 688–698. Retrieved from http://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=auo&turl=http://www.sciencedirect.com/science/article/pii/S0263786307001548 Assignment Summary: Module 1 Due...
Words: 1087 - Pages: 5
...Bachelor Thesis Interaction Design THE CUSTOMER BUYING PROCESS - a tediuos affair or a pleasant experience? u 2010-06-10 u Department of Culture and Society u K3, School of Communication and Art Design: Matilda Marcelius Marie Neubauer matilda@marcelius.se +46-704-35 05 34 marie@neubauer.se +46-707-53 09 93 Tutor: Michael Svedemar Contents 1. Abstract ....................................................................................................................3 2. Introduction .............................................................................................................3 2.1 Problem statement .........................................................................................5 2.2 Focus and constraints ....................................................................................5 3. Design context and related theories.......................................................................6 3.1 How interaction design and service design integrates ...................................6 3.2 Service design ...............................................................................................7 3.3 The importance of the built environment – the servicescape ........................9 3.4 Spatial design ..............................................................................................10 4. Methods..................................................................................................................13 4.1 Literature...
Words: 12529 - Pages: 51
...Bachelor Thesis Interaction Design THE CUSTOMER BUYING PROCESS - a tediuos affair or a pleasant experience? u 2010-06-10 u Department of Culture and Society u K3, School of Communication and Art Design: Matilda Marcelius Marie Neubauer matilda@marcelius.se marie@neubauer.se +46-704-35 05 34 +46-707-53 09 93 Tutor: Michael Svedemar Contents 1. Abstract ....................................................................................................................3 2. Introduction..............................................................................................................3 2.1 Problem statement..........................................................................................5 2.2 Focus and constraints.....................................................................................5 3. Design context and related theories.......................................................................6 . 3.1 How interaction design and service design integrates. ..................................6 . 3.2 Service design ...............................................................................................7 3.3 The importance of the built environment – the servicescape.........................9 3.4 Spatial design ..............................................................................................10 4. Methods....................................................
Words: 12530 - Pages: 51
...Internationalization of IKEA in the Japanese market and Chinese markets Tutor: Authors: Group: Date: Leif Linnskog Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) 2022 June 4, 2008 Master Thesis EFO705, 10 points (15 credits) – Spring 2008 International Business and Entrepreneurship – MIMA Program School of Sustainable Development of Society and Technology Abstract Date June 4, 2008 Level Master Thesis EFO705, 10 points (15 credits) Authors Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) Title Internationalization of IKEA in the Japanese and Chinese markets Supervisor Leif Linnskog Problems Why did IKEA internationalize into Japanese and Chinese markets? And what factors did influence IKEA’s success in Chinese market but failure in the Japanese market of the first round? Purpose The aim of thesis is to understand the internationalization of IKEA in Asia by comparing between Japanese and Chinese markets. Method This master thesis based on qualitative approach in order to investigate the internationalization of IKEA in Asian markets as a case study since it is beneficial in understanding the observation and explanation of behavior in the certain cases. Conclusion IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while internationalize...
Words: 20792 - Pages: 84
