We have chosen to use Ikea as the company in which we will base the analysis of this case report. The Ikea has been chosen is because we believe that it is a company which stems from entrepreneurial activities right from the beginning of its existence, to the present day. Ikea is a worldwide furniture retailer, the largest of its kind, and it is thus important to understand how they have become so successful, what sets them apart from the competition. It is also interesting to see how they have developed and integrated ideas as well as innovative designs which keep the consumer coming back while attracting new customers. We will also explore how the company is able to maintain the position of market leader and have a first-rate reputation. Even though the goods and services provided are inexpensive, they have great quality. The key factors displayed, are how Ikea's growth into new markets occurs, and how the development of their products is maintained at constant rate. We will discuss who is responsible for this and what techniques Ikea incorporates. This case report relies upon information from a number of different sources. These include Newspapers, Articles, Text Books and the Internet. We have also used our own knowledge to a certain extent, through visiting stores in the past in the United Kingdom, France and Sweden. This has given us valuable information to what it is like first hand, to experience the Ikea sensation, and view it from the customer's point of view.
[...] Environmental issues are becoming more and more important and Ikea has to deal with environmental organizations because of its large need for wood. This is why Ikea encourages its suppliers to use recycled materials for its products. The general trend in the Western cities is to avoid large parking downtown (which is an attribute of Ikea's shops) and Ikea is obliged to build its new shops far in the suburbs. Finally, regarding its different attributes, Ikea can be seen as a very entrepreneurial company. [...]
[...] This is a mix of seminars, actions and methods to improve the managers' skills in terms of innovation, entrepreneurship, flexibility and independence. In many aspects, Ikea's corporate culture can be analyzed as a strong encouragement to innovation and measured risk taking. Ikea tries to develop strong relations between the actors it works with. Employees are considered as co-workers, and the suppliers as partners. Size, Structure and organization The organization of the company is horizontal, which means that the relations between managers and the employees is very informal and hierarchy is diminished at its minimum. [...]
[...] These are occasions for managers to directly communicate with the co-workers and thus, increase the level of trust between individuals. In order to motivate teams instead of individuals, each week kicks off with bulletins regarding sales growth, performance of the country market, etc . with relevant placards placed in the offices. One of the next issues Ikea would potentially be called upon to deal with is the death of its emblematic founder. Currently, Kamprad symbolized Ikea's successful values. We can wonder how the top-managers will manage to adapt the communication of the company's values with the death of Ikea's central figure. [...]
[...] A general low-cost-leadership strategy can only work effectively when the organization can provide products or services at a lower cost than the competition. In order to furnish customers with good quality items at a low cost, the firm tries to find suppliers that can deliver high quality items at low cost per unit. This strategy is also aimed at delivering products and services that are different from the product mix of the competition. According to Kirzner this differentiation is a form of entrepreneurship. [...]
[...] That is what we call corporate entrepreneurship. What are the means and the factors to encourage entrepreneurship inside Ikea? A. How does Ikea manage its entrepreneurial activities? The flat package, which was a huge revolution in the distribution sector and which is an integral part of the success of Ikea, was invented by accident in 1955 by a young technical designer who removed the legs of the table to put it in the boot of his car. That means that one of the most innovative concepts that eventually played a major role in the company's success was the brainchild of a simple employee. [...]
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