Nobody downloaded yet

IKEA Growth and Sustainability - Essay Example

Comments (1) Cite this document
Summary
Ikea is a privately owned enterprise which engages in the design, production, and retail distribution of home furniture and other products useful for the home. It is the world’s largest and best known distributor of low-priced furniture and housewares. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.1% of users find it useful
IKEA Growth and Sustainability
Read TextPreview

Extract of sample
"IKEA Growth and Sustainability"

Download file to see previous pages He opened the chain’s first store in Almhult, Sweden in 1953. Located in the Smaland region, one of the poorest regions in the country where the young Kamprad developed his characteristic Spartan work ethic and austere management style typical of the province. The company is intimately infused with the personality of Kamprad; the very name is derived from the initials of his name (I and K), and the first letter of the farm Elmtaryd and the village Agunnaryd where Kamprad was raised (IKEA website, 2011).
Ikea’s products are characterised by self-assembly, which means that the customer purchases the product components with instruction on how it is to be assembled. The broken-down product is sold in flat packs that save on space and are easy to transport in the customer’s van or car, without the need for delivery service. The core strategy of the company is the creation of furniture of high value in terms of workmanship and aesthetics, at the lowest possible cost to the customer. Its overriding philosophy remains unchanged from Kamprad’s initial vision, that people of all walks of life are entitled to affordable and beautiful furniture. The company constantly explores emerging efficiencies in its value chain, allowing it to realize an average 2-3% reduction in its prices for each year over the last 10 years (Thomas White Global Investing, 2011).
The company’s growth from the time it was established has been consistent and steady. Annual turnover has risen from the equivalent of about 1 million euro in 1954 to 13.6 billion in 2004 (see diagram below). Even through the recent economic recession from 2007 to the present, the group’s sales turnover improved from 17.7 billion euros in 2006 to 23.8 billion euros in 2010, with a yearly positive increment. Visitors to Ikea stores through the years have increased from a mere 50,000 in 1954 to 401 million in 2004, to a recent 699 million in 2010, again with constant positive year-on-year growth. The growth in visitors is driven by a continuous growth in the number of Ikea stores worldwide. In 1954 there was the lone Ikea store opened by Kamprad, and by 2004 the total stores numbered 201. Ikea store continued opening while others were closing, from 237 in 2006 to 316 in 2010 (Ikea Website, 2011). Ikea turnover history. (Source: Boscor & Bratucu, 2009:55) Concerning its sustainability, Ikea has adopted several initiatives which promise to enhance the company’s operations to a level of minimal waste and maximum productivity. According to green design advocate Inhabitat (2011), Ikea has committed to use 100% renewable energy, banned the sale of incandescent bulbs, and promises to use only sustainable cotton. The company has also been reported to install charging stations for electric vehicles at its US stores, and in Sweden it has built a company-owned wind farm to power 17 of its stores. Undoubtedly, the company’s growth and sustainability are synergistically intertwined, such that one cannot prosper without the other. This study shall thus analyse the drivers of growth and sustainability of the Ikea Group using Bolman and Deal’ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“IKEA Growth and Sustainability Essay Example | Topics and Well Written Essays - 3500 words”, n.d.)
Retrieved de https://studentshare.org/business/1391635-ikea-growth-and-sustainability
(IKEA Growth and Sustainability Essay Example | Topics and Well Written Essays - 3500 Words)
https://studentshare.org/business/1391635-ikea-growth-and-sustainability.
“IKEA Growth and Sustainability Essay Example | Topics and Well Written Essays - 3500 Words”, n.d. https://studentshare.org/business/1391635-ikea-growth-and-sustainability.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
vo
vonruedenkather added comment 7 months ago
Student rated this paper as
I had an issue with a essay types of works. All until I came across this website and this particular paper. Even though "IKEA Growth and Sustainability." is far from my interests, the structure is so great that I use it all the time as an example for my own works.
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
IKEA
...and beautifully in the households. IKEA even has furniture that are made of sustainable resources making them environment friendly choice as well (IKEA Fans, n.d). Source: (IKEA, 2010). IKEA Stores/ Branches The first store of IKEA in Almhult had an area of 6700 square meters and had the biggest display of furniture in entire Scandinavia. Apart from Sweden, the first store of IKEA was inaugurated in Norway near Oslo followed by a flagship circular store with an area as large as 45,800 square meters in Stockholm which took its inspiration from the museum named Guggenheim situated in the city of New York. Although the...
7 Pages(1750 words)Essay
Business Growth and Sustainability
...? James Savastano Business Growth and Sustainability 10048723 Executive Summary The Make an impact week led to birth of many great ideas, one being the Fifa 12 tournament, to be held on the University campus, which our team came up with. Fifa 12 is a highly popular game amongst individuals as well as a game where individuals have a competitive nature when competing against each other on the game. A decision to raise funds by playing Fifa 12 seemed a strategic plan in raising money within a very short time span. The project was to take place within a week. Fifa 12 seemed to incorporate fun, strategic planning, time factor and generation of funds. The tournament was to be held during university time in an...
8 Pages(2000 words)Assignment
IKEA
...cacophonous due to the presence of inefficient bureaucracy and corruption. Other than this, the instable government policies and regulations also acted as a curse that hampered the growth of the organization of IKEA. Not only this, shaky coalition of the government of UK hampered the business scenario to a significant extent. Among other segments, the furniture retailers attained a serious set-back due to such inconsistency. As a result, the world famous retailing brand, IKEA lost its market share by 3.5 % and profit margin by 4.9% at the end of 2012. Side by side, the reputation and brand image of the organization of IKEA also declined thereby hindering its market value...
10 Pages(2500 words)Assignment
The Phenomenal Growth of IKEA
... The Phenomenal Growth of IKEA 1 Introduction In the world of Furniture, IKEA is a name to reckon with. It has built an image for itself in the Do It Yourself (DIY) market and has introduced a new middle class concept of assembling furniture inexpensively. This idea promoted by its founder Ingvar Kamprad in 1956 set it apart from all others and since then it has shed every other business and concentrated on this activity alone. Kamprad had founded the company from humble beginnings at age seventeen in 1943. But perseverance and following a simple strategy of offering customer value for money and service, he eventually built an empire that ranked 42nd among the top 100 brands worldwide...
27 Pages(6750 words)Essay
IKEA -
...of its products are made of wood which is renewable, recyclable and biodegradable (www.forest-trends.org). Suppliers are also obliged to adhere to IKEA’s requirement of environmental safety, while it is IKEA’s policy to promote a more sustainable use of forest resources and communicate what it is doing to customers. It believes customers have the right to know where the wood comes from and what tree species is used. IKEA’s policy is to source all its wood from verified, well managed forests, with the verification being carried out by a third party according to a standard that takes into account social, economical and environmental interests. (www.forest-trends.org)....
10 Pages(2500 words)Essay
Ikea
...IKEA: Strategic Planning and Marketing Environment Locate its mission ment, then develop a few marketing objectives that you believe would suitably support it. IKEA’s mission state is: “To create a better everyday life for the many”1 The mission statement of IKEA is market oriented and not product oriented. Based on this mission statement, following marketing objectives have been developed. One of the marketing objectives is to attract and expand local customer base To become a key player in the furniture industry To create a strong public perception of IKEA in the industry 2. In your company’s industry, are external factors more influential on marketing planning than...
1 Pages(250 words)Case Study
IKEA
...IKEA Consumer and Organisational Behaviour Consumers’ Level of Involvement and IKEA’s Marketing Plan The perceived level of risk of consumers is high when it comes to buy furnishing products therefore, consumer involvement level is high. Perceived Risk It has affected IKEA’s marketing plan in the following way. Post Purchase Evaluation at IKEA and its Impact on Marketing Plan IKEA is offering its products worldwide however; company has been offering its standardised products until it accessed US market. When the sales of IKEA declined after entering into US market, company had to conduct a research based on which it found that consumers in US did not like European furniture styles and dimensions. Based on consumer feedback, IKEA... ...
1 Pages(250 words)Case Study
Ikea
...Where IKEA stands today and why? Introduction IKEA has now become one of the leading affordable solution providers of stylish home furnishings and furnitures across Europe, North America, Middle East, Asia Pacific, and Caribbean (IKEA). This is due to its consistent ability to serve its target market segment with its available product or service offerings by using targeting strategy and effective market segmentation. Dynamic targeting strategy and effective market segmentation As mentioned in the case, IKEA’s customers are frugal or cost-conscious who would want to have more additional value for their money by choosing stylish home furnishings and furnitures suited to...
1 Pages(250 words)Case Study
Ikea
...adaptive business model and acquired a successful formula for profitability and growth across multi-markets. From 1960 to 1980, the company had implemented an explorative internationalization strategy. From 1980 to mid-1990s, the company implemented rigid replication strategy and since 1990, the company has been operating on grounds of flexible replication strategy. Hence, it is expected that in the long run by establishing its business branches in emerging nations of the world, the company would be able to sustain its position in the global forum, regardless of problems associated with recession and crisis (Bartucca, n.d.). Conclusion From the above portfolio analysis, it would be correct to...
20 Pages(5000 words)Research Paper
IKEA
...blueprint in which is melted the clarity of white color with the nature spirit of the oak textile; an ideal arrangement that is very fashionable. Currently for just a limited time, both existing and new IKEA family members can take pleasure in buying IKEA’s MALM chest of 2 drawers in black-brown, oak veneer, white stained oak veneer and birch veneer (Baxter, Landry, 2010). Technology has played a major role in the development, growth and expansion of IKEA. Most of the technological advances at IKEA are based on having a lasting customer service experience. IKEA has been able to effectively make use of modern technology as a leveraging...
15 Pages(3750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic IKEA Growth and Sustainability for FREE!
Contact Us