IKEA is a Swedish multinational group that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. It was founded in 1943 by Ingvar Kamprad in Sweden. IKEA believes in offering well-designed, functional home furnishing products at affordable prices. It uses a low-cost business model and sustainable practices throughout its operations and supply chain. IKEA has grown to become one of the world's largest furniture retailers, with over 500 stores globally and annual revenue exceeding $40 billion.
2. “Once upon a time, a long, long time ago we decided that, instead of
making furniture for people with fat wallets, we would side with the majority
of people instead and offer them a better everyday life. we decided to offer
a wide range of home furnishing items of good design and function, at
prices so low the majority of people could afford to buy them.”
Ingvar
Kamprad.
4. Throughout our life, we seek to find a purpose, a purpose from which to plan a path to where our dreams, goals, objectives
and our vision of the world and of things lead us to a point and a moment where success and new ideas are found.
IKEA one of the most successful multinational companies in the production of furniture and products for home in the
world, did not fall behind in bringing its vision and identity as a brand to the world.
As part of its image and business strategy, it promotes and acts in such a way that its clients are part of
the IKEA family, as part of their living the experience of change, that experience that their clients are
looking for within their store. Live your own experience that provides confidence, quality, comfort and
security towards the company.
EVERYTHING IS ABOUT IN ITBELIEVE
5. IKEA believes that everyone has something valuable to offer. They as a diverse group of honest and down-
to-earth people who love home décor products, come from different parts of the world with the vision of
inspiring and helping people to live in a more sustainable and healthy way.
Their work is based on unity and enthusiasm.
6. Ingvar Kamprad wanted to help create a better everyday life for the people in the area of Sweden where he lived. He was
brought up in a farming community where ordinary people were struggling to make a living out of stony fields and limited
resources. Nothing could be taken for granted and survival meant hard work, ingenuity and working together. Ingvar
Kamprad’s desire to help ordinary people founded the basis of a strong company culture which has helped to make IKEA so
successful.
“Together we build a diverse, inclusive, open and honest environment, and we are constantly looking for
people who share our values and positive attitude”.
CREATING AND INNOVATING AS A TEAM
7. Furthermore, IKEA has had an ECO-friendly platform for several years now, where its main purpose is to develop products
that support and do not harm the environment.
Over the years, IKEA has formed alliances and associated with different companies and organizations, part of their
identity as companies is caring for the environment.
Among some are:
In 2000 IKEA formed a partnership
with UNICEF to work on a
community program in Northern
India. The aim of the work was to
prevent child labor by raising
awareness and addressing the root
causes.
IKEA has also formed a
partnership with the World
Wildlife Fund (WWF).
IKEA and WWF have committed
themselves to promoting the
sustainable use of natural
resources. This helps to ensure
that forests can be used both
now and in the future.
8. IKEA Sustainability Product Score Card criteria in brief:
More from less (using less material in the product)
Renewable material
Recycled material
Environmentally better material
Separable & recyclable material
Product quality
Transport efficiency (number of products per
container)
Energy efficient production
Renewable energy in production
Raw material utilization at suppliers
Product use (less use of energy and water, and less
waste in customers’ homes)
IN EVERY SUCCESFULL COMPANY THERE ARE
RULES AND A PROCESS TO FOLLOW
9. Design Stage
Design: creating design of product.
Quality product: Checking that products meet strict requirements
for function.
Distribution: Distributing raw material into manufacturing sector.
Raw Material Supplies
IKEA buys products from more than 1,300 suppliers in 50 countries.
It uses a number of trading service offices across the world. They
negotiate prices with suppliers, check the quality of materials and
analyze the environmental impacts that occur through the supply
chain. They also keep an eye on social and working conditions at
suppliers.
IKEA has a clear vision – to provide well designed, functional home furnishings at prices so low that as many people as possible will be able
to afford them.
A key part of IKEA’s success is credited to its communications and relationship management with materials suppliers and manufacturers to
get good prices on what it procures.
10. Environmental Impact
IKEA uses a tool – “the e-Wheel” – to evaluate the environmental
impact of its products. It helps to analyze the four stages within the
life of a product.
Also helps suppliers improve their understanding of the
environmental impact of the products they are supplying.
Supplier Codes of Conduct
IKEA specifies to its producers that waste should be avoided. Where
waste does occur, IKEA encourages suppliers to try to use it in the
manufacture of other products. IKEA has a code of conduct called
the IKEA Way of Purchasing Home Furnishing Products (IWAY).
The e- Wheel helps IKEA to analyze the four stages within the
life of a product.
Approximately 50% of IKEA's 9,500 products are made from
wood or wood fibers.
This is a good resource as long as it comes from sustainable
sources. It can be recycled and is a renewable resource.
11. Manufacturing
Manufacturers within the secondary sector create IKEA products from raw materials. As products move through the supply
chain, the process of value-added takes place.
IKEA designs many of its products so that the smallest amount of resources can make the best products.
Example: IKEA saves on resources by using hollow legs in furniture.
Sustainable Partnerships
In 2000 IKEA formed partnership with UNICEF to work on a community program in Northern India.
Purpose: prevent child labor by raising awareness and addressing the root causes.
IKEA has also formed a partnership with the World Wildlife Fund (WWF)
Purpose: promoting the sustainable use of natural resources. To ensure that forests can be used both now and in the future.
12. Other Business
Businesses in the tertiary sector provide a service, such as
banking, transportation or retailing.
Retailing
Retailing turnover in the UK was more 250 billion in 2006.
Each IKEA store is large and holds more than 9,500 products
giving lots of choice. Within each store, there are a number
of realistic room settings that enable customers to see what
the products would look like in their own homes.
The IKEA store is built on a concept of “you do half, we do half”; together we
save money.
Sustainable Activities (The now)
The IKEA Group Sustainability Strategy for 2020
PEOPLE & PLANET POSITIVE IKEA has been committed to
sustainability for many years, and we are now taking the
next big step. Through our sustainability strategy, “People
& Planet Positive”, we use sustainability to drive
innovation, transform our business, steer our
investments and unleash new business opportunities.
Sustainability at IKEA means ensuring
environmental, economic and social well-being for
to- day and tomorrow.
13. Across their integrated value chain, they contribute to improving the quality of life of people and communities
and support a world that prospers within the limits of one planet.
All of this taking an important part of how they how it operates as a multinational company, forming part of its
policy as a company, its values and identity.
14. As for business, today IKEA is one, if not the largest and most
successful furniture manufacturing company, not only for
changing people's lifestyle but also for improving the quality of
life.
And to a large extent that success is due to the culture of the
company, and all the value that this puts to its work.
The company designs its own furniture and products, which are manufactured by more than 1,500 suppliers in more than 50
countries. Ikea reformulated the furniture manufacturing and marketing model so that most of the products it sells are
detachable; they can be stored and transported in flat, uniform packaging, which is supposed to lower costs and prices.
DOWN TO BUSINESS
15. Their business partners and business environment have a lot to do with this, because IKEA is a big family making a greater
impact in their world with their business model.
Germany 20% of sales
England 12% of sales
United States 11% of sales
France 9% of sales
Sweden 8% of sales
Many companies, organizations and people – together – shape the IKEA brand. Each and every person, idea and solution
help us become more accessible, affordable and sustainable.
16. One of the key competitive advantages IKEA has is its extensive knowledge about the customers. The
company understands the purchasing factors which influence customers to buy furniture and implements
the best practices to induce that decision.
In fiscal year 2019, the company generated a global
revenue exceeding 41 billion Euros.
IKEA offers low prices and a huge range of products, constantly introducing new product designs that look stylish in the eyes
of customers. All the products are designed so they are easy to transport and assemble. Moreover, the company offers an
extremely wide product range and positive shopping experience.
IKEA was the retailer of choice among Americans when shopping for furniture.
17. Also of the most interesting facts about IKEA is about their demography inside the company, and is that IKEA employs
very young people and from both genders, being students, employees or professionals.
Although there are some rules they need to follow to be hired, IKEA has a really flexible culture and on favor of equality
and opportunity for everyone who is interested in start working.
A NEW GENERATION
18. THE FUTURE IS NOW
The IKEA response to the coronavirus pandem
19. In these challenging times, protecting the health and livelihoods of co-workers, suppliers, customers and
communities is our top priority and requires immediate action on as many fronts as possible. Here you can
see how we are responding to the pandemic and the initiatives we are taking. The situation is rapidly
evolving so we will continue to update this page as things develop.
The global spread of COVID-19 affects everyone, including the
many people around the world whose lives are touched by
IKEA.
Together we’ll lay the groundwork for a positive
recovery.
A message from Torbjörn Lööf, CEO Inter IKEA
Group.https://www.youtube.com/watch?v=8wdxlo3SzkM&featu
re=emb_title
Emergency community support
Ingka Group, the largest IKEA franchisee, has
taken an initial step of supporting emergency
relief with €26m of in-kind donations, allowing
all 30 of its markets to take immediate action in
their local communities.
20. The IKEA Foundation is also committed to providing up to €10 million, primarily to help existing partners with coronavirus specific
programmes supporting communities around the world. The IKEA Foundation is supporting Médicins Sans Frontières (Docters without
Borders) as well as the Start Network with the launch of a new COVID-19 fund with a donation of €1.5M.
Some of the local initiatives that have been taken so far
IKEA Industry in Hungary started a project to support the local hospital with ventilators - an initiative that inspired more
local companies to join in.
Stores in Sweden, The Netherlands and Hong Kong have provided safety masks to local communities.
Franchisee Al Sulaiman has supported with the furnishing of up to 200 rooms in quarantine facilities in Saudi Arabia
and Bahrain and has so far donated more than 800 products, including beds.
Franchisee Sarton has donated food from their closed stores in the Spanish Islands and the Caribbean to local
community support organisations.
Delft Westcord IKEA Hotel provided rooms for elderly hospital patients not suffering from COVID-19 to allow more
space at local hospitals for COVID-19 patients.
IKEA Wembley in the UK opened a coronavirus test centre for NHS (National Health Service) workers.
In mainland China, the IKEA Purchasing & Logistics Area East Asia Sustainability Compliance team has set up an
epidemic response group to support all business partners to secure workers’ health when resuming production.
TOGHETER FOR A BETTER TOMORROW
21. https://about.ikea.com/en/covid-19-the-ikea-response
To keep on reading click
here.
IKEA joins alliance committed to a green recovery from coronavirus
pandemic
Even if the COVID-19 outbreak calls for urgent action, we are determined not to lose sight of our long-term goals.
Despite the current shift in focus, we remain committed to becoming circular and climate positive by 2030.