IKEA: Managing Global Expansion

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Case Details:

Case Code : BSTA068
Case Length : 13 Pages
Period : 2003
Organization : IKEA
Pub Date : 2003
Teaching Note :Not Available
Countries : Scandinavia
Industry : Consumer Durables

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

IKEA (an acronym for the initials of the founder, Ingvar Kamprad, his farm Elmtaryd, and his country, Agunnaryd, in Smaland, South Sweden.) was the brain child of Ingvar Kamprad who began his entrepreneurial career in 1943 by selling fish, Christmas magazines, and seeds...

Operations

Ikea believed in lean and efficient operations that would result in products that offered value for money : "It's not difficult to manufacture expensive, fine furniture. Just spend the money and let the consumers pay...

Globalization

On August 31, 2001 IKEA had a total of 143 stores in 22 countries. IKEA also had 20 stores owned and operated by franchises in 13 countries/territories. IKEA purchased from about 2000 suppliers in 55 countries and had 40 offices in 33 countries...

Organizational Culture

Ingvar Kamprad's leadership had played an important role in Ikea's success. Kamprad's vision was to improve the quality of daily life for the masses. Kamprad demonstrated from the very beginning a combination of salesmanship, practical business acumen, thrift, an identity with ordinary people, and an unconventional perseverance in the face of adversity...

Exhibits

Exhibit I: IKEA: Turnover
Exhibit II: Ikea: Purchasing by Region

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