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Recommended: Introduction of IKEA
Introduction
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. The company is the world's largest furniture retailer. Founded in 1943 by 17 year old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish. IKEA has 300 home furnishing superstores in 35 Countries and was visited by some 583 million shoppers. IKEA’s low priced elegantly designed merchandise displayed in large warehouse stores, generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The fledgling company sold fish, charismas magazine, and seeds from his family farm. His first business hadbeen selling matches, the enterprise Kamprad purchased them wholesale in 100 box lots and thenresold individually at a higher mark up. Before long, Kamprad had added ballpoint pens to hislist and was selling his products via mail order.
History
In 1948, Kamprad added furniture to his product line. In 1949 he published his firstcatalog. Kamprad hired 22 years old designer, Gillis lundgren originally helped Kamprad to dophoto shoot for catalog but, later he became a designer of many furniture for IKEA. Its goal wasover time to provide stylish functional design that can be cost effective. Ultimately this led to
concept of what IKEA calls “democratic design”. In 1957, IKEA started to exhibit and sell its
products at home furnishing fairs in Sweden. By 1958, an expanded facility at the Almhult location became the first IKEA store. The original idea behind the store was to have a location where customer could come and see...
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...ness idea is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them”.
We work hard to achieve quality at affordable prices for our customers through optimising our entire value chain, by building long-term supplier relationships, investing in highly automated production and producing large volumes. Our vision also goes beyond home furnishing. We want to create a better everyday for all people impacted by our business.
The furniture market of USA is very fragmented. But there are some well-established retailers who are selling functional furniture at a very low cost for example: Wal-Mart, Office Depot.These retailers will be in direct competition with IKEA. On top of this there are also some highend retailers who sell high-quality, well designed furniture.
Bob Discount Furniture is the competitor chosen by our group. Bob’s discount furniture and IKEA both compete on a low-cost strategy. The current CEO is Edmond J English. Bob’s discount furniture first opened its doors in 1991. Since then Bob Discount Furniture has grown to fifty stores in eleven states. Most are located in the Northwest and Mid-Atlantic. Their headquarters is located Manchester, CT. Bob’s Discount Furniture have a fast paced sales environment, family like setting with co-workers and managers, good selling incentives for sales associates, good social mobility and advancement opportunities. They compete own their fashionable furniture that exceed “discount” expectations.
Conclusion: Given the current economic status the home improvement industry is in a low spot with sales. With the decrease in building new homes we have to focus mainly on home improvements. The three strong points we have against existing rivalries are our great locations, quantity of quality products, and convenient customer service. With these great qualities we can move ahead and stay ahead of our competitors during these times.
Traditionally, Dansk Designs followed a strategy of differentiation. When a firm follows this strategy, they create differences in the firm’s product or service by creating something that is perceived as unique and valued by customers. Differentiation can take many forms, including prestige or brand image, which Dansk decided to implement. Their product line consists of eight product categories, which include flatware, china, linen, glass, decorator cookware, and wooden bowls and trays. Their products are of high quality and are highly priced. Dansk was able to achieve a differentiation advantage because their price premiums exceeded the extra costs of being unique. Dansk is able to create these unique products because of the talented designers they employ, including Jens Quisrgaard, Niels Refsgaard, and Gunnar Cyren. Another competitive advantage of a strategy of differentiation is the ability to deal with supplier power. There is a certain amount of status associated with being the supplier to a producer of differentiated products. Dansk’s principal supplier, Richard Nissen, has enjoyed working with Dansk because he believes they have been able to “preserve the handcrafted nature of the products”.
Shiro Kuramata (1934-91) was a Japanese designer best known for his furniture and interior design, which gave the modern culture a creative voice. Many will identify with the chair he designed for the Vitra Design Museum in 1987 titled, How High the Moon (fig 1). The piece was inspired by an old jazz song and is part of the permanent collection at New York’s Museum of Modern Art. It is designed as a spacious armchair with woven threads of expanded metal; the piece weighs little more than a leaf, and can withstand robust use . His other works include entire storefronts designed for his friend Issey Miyake, for whom Kuramata created over 100 retail interiors . One of these works is Bergdorf Goodman in New York (fig 2.) designed in 1984 , which today sells products for Gucci, Prada, Jimmy Choo, Dolce & Gabbana, and others .
We understand the importance of our missions and the trust our customers place in us. With this in mind, we strive to excel in every aspect of our business and approach every challenge with a determination to succeed.
The purpose of this essay is analyze the case of IKEA, which has involved in the HR management. Meanwhile, choose two topics to identify the IKEA current situation, including training and development and cross-cultural management. From those two points, give some forward suggestions on the IKEA HR management practice.
At the age of 17 his father gave him a reward for the success in his business. May be it was a turnover in his life. He used this money to establish his small company which will be the world's largest furniture retail company in the future. 10 years later kamprad registered his firm IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) on july 18, 1943. He used to sell pens, wallets. Picture frames, tables, jewelry etc. with very cheap retail prices.
and will work their best to achieve them. With this management style, IKEA can use various methods of communications (see E5). However this type of management style could make decision-making slow and is not appropriate to some businesses such as, manufacturing industries. The organisational structure, culture and the management style of IKEA have to perform successfully so that, together they can achieve the company’s objectives. For example, to increase profitability: the communication within the organisation have to be clear so that, staff can understand what jobs have to be carried out; staff have to be motivated to perform the job; the relationship between managers and staff have to be strong and committing; the organisation have to encourage staff to create new ideas and share them amongst others; democratic managers have to listen and act on the opinions of workforce, democratic managers have to make sure that the workforce is well aware of the objectives of IKEA, etc.
ForIn the past couple of years, IKEA has been deeply involved with the issues of the environment. In the article, “IKEA’s
DataMonitor, 2007. IKEA major retail competition in the US are: Furniture Brands International Inc., Office Depot Inc., Sauder Woodworking Co., Stanley Furniture Company, Inc., and Staples , Inc. This paper will identify the key macroeconomic variables that affect IKEA and the retail industry as a whole. To better understand the effects of such variables upon the industry, two specific variables will be developed further.
The world is developing every day and we continue to discover new and innovative ways to better our quality of life. A trend that everyone seems to be focused on is saving the environment, which is also known as sustainable living. Not only does this apply to our lifestyle and environment, but it also translates into design. Sustainable living is becoming more popular around the world and is a lifestyle using skillful and sensitive design. It eliminates negative environmental impact and requires renewable resources. We each have decided to research different furniture companies to broaden our knowledge of the innovative practices used in each company. Throughout our paper we will introduce each of our companies and the products and practices they use to produce sustainable furniture. Our research will show that sustainable furniture design is beneficial to consumers by allowing them to live a more environmentally friendly lifestyle as their manufacturers develop innovative ways to make renewable furniture.
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
E-commerce is available on Ikea’s website to selected countries, and they provide an e-mail address to customers who have queries about their business.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...