Company Review session by Nawaz
Company history
IKEA is
a multinational group of companies that designs and sells ready-toassemble furniture (such as beds, chairs and desks), appliances and home
accessories. Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad,
who was listed as one of the world's richest people in 2013, The company is
known for its modern architectural designs for various types of appliances and
furniture, and its interior design work is often associated with an eco-friendly
simplicity.
As
of December 2014, IKEA owns and operates 351 stores in 46 countries.] The
IKEA website contains about 12,000 products and is the closest representation of
the entire IKEA range. There were over 470 million visitors to IKEA's websites
in the year from September 2007 to September 2008. The company uses
approximately 1% of Earth's wood supply, making it one of the largest users of
wood in the retail sector.
Product and services
IKEA
products are identified by one-word (rarely two-word) names. Most of the names are
Scandinavian in origin. Although there are some exceptions, most product names are based on a
special naming system developed by IKEA.[43]
Upholstered
furniture, coffee tables, rattan furniture, bookshelves, media storage, doorknobs: Swedish
placenames (for example: Klippan)
Beds, wardrobes, hall furniture: Norwegian place names
Dining tables and chairs: Finnish place names
Bookcase ranges: Occupations
Bathroom articles: Scandinavian lakes, rivers and bays
Kitchens: grammatical terms, sometimes also other names
Chairs, desks: men's names
Fabrics, curtains: women's names
Garden furniture: Swedish islands
Carpets: Danish place names
Lighting: terms from music, chemistry, meteorology, measures, weights, seasons, months, days,
boats, nautical terms
Bedlinen, bed covers, pillows/cushions: flowers, plants, precious stones
Children's items: mammals, birds, adjectives
Curtain accessories: mathematical and geometrical terms
Kitchen utensils: foreign words, spices, herbs, fish, mushrooms, fruits or berries, functional
descriptions
Boxes, wall decoration, pictures and frames, clocks: colloquial expressions, also Swedish place names
Awards
Awards[edit]
IKEA was named one of the 100 Best Companies
for Working Mothers in 2004 and 2005 by
Working Mothers magazine. It ranked 80 in
Fortune's 200 Best Companies to Work For in
2006 and in October 2008, IKEA Canada LP was
named one of "Canada's Top 100 Employers" by
Mediacorp Canada Inc., and was featured in
Maclean's newsmagazine. Additionally, IKEA is
the most popular store for college furnishings
csr
involvements:
IKEA
through IKEA Social Initiative contribute 1 to UNICEF and Save the
Children from each soft toy sold during the holiday seasons, raising a total of
16.7 million so far.[76] In 2013, an IKEA soft toy, Lufsig, created a storm and
sold out in Hong Kong and in Southern China because it had been misnamed
in Chinese.[77]
IKEA Social Initiative provided soft toys to children in Burma after Cyclone
Nargis.[78]
Starting in June 2009, for every Sunnan solar-powered lamp sold in IKEA
stores worldwide, IKEA Social Initiative will donate one Sunnan with the help
of UNICEF.[79]
In September 2011,[80] the IKEA Foundation pledged to donate $62 million
to help Somali refugees in Kenya.[9]
According to The Economist, however, IKEA's charitable giving is meager,
"barely a rounding error in the foundation's assets.
Manufacturing and employees
Although IKEA household products and furniture are designed in
Sweden, they are largely manufactured in developing countries
to keep costs down. China accounts for about 2 times as
much supply as Sweden. For most of its products, the final
assembly is performed by the end-user (consumer).
Swedwood, an IKEA subsidiary, handles production of all of the
company's wood-based products, with the largest Swedwood
factory located in Southern Poland. According to the subsidiary,
over 16,000 employees across 50 sites in 10 countries
manufacture the 100 million pieces of furniture that IKEA sells
annually. IKEA furniture uses the hardwood alternative particle
board and Hultsfred, a factory in southern Sweden, is the
company's sole supplier
Vision and idea
To create a better everyday life for the many people, this
is the IKEA vision. Our business 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.
Key people
From left to right:
Martin Hansson,
Retail & Expansion
Petra Hesser, Human
Resources
Jesper Brodin, Range
& Supply
Steve Howard,
Sustainability
Peter Agnefjll,
President and CEO
Helen Duphorn,
Corporate
Communications
Leif Hultman, IKEA
Industry
Alistair Davidson, CFO
Services
Delivery services
Picking with delivery
Van hire
Furniture recycling
Assembly service
Installation
Kitchen planing
Curtain making and desinging
Finance services
Roof rack
Recycling ofelectrical and equipment
The
story behind the name
The IKEA name combines the initials of
IKEA founder, Ingvar Kamprad, (IK) with
the first letters from the names of the
farm and village where he grew upElmtaryd and Agunnaryd (EA). The IKEA
logo has hardly changed during the
companys history and the 1967 version
remains a consistent symbol of the IKEA
business.
IKEA SWOT analysis 2013
Strengths
Weaknesses
1.Customer knowledge
1.Negative publicity
2.Constantly using
2.Decreasing quality
innovations to drive costs
3.Standard products
down
3.Supply chain integration
4.Brand reputation and
market presence
5.Diversified product portfolio
Opportunities
Threats
1.Further expansion into
developing economies
2.Growing online sales
3.Expansion to growing
grocery market
1.Intensifying competition
2.Growth of average
consumer income
Competitors
Home
town
Europe
Belgi | Belgique (Belgium)
(Bulgaria)
esk republika (Czech Republic)
Danmark (Denmark)
Deutschland (Germany
Eire (Ireland)
(Greece)
Espaa | Espanya | Espainia (Spain)
France
Hrvatska (Croatia)
sland (Iceland)
Italia (Italy)
(Cyprus)
Lietuva (Lithuania)
Magyarorszg (Hungary)
Nederland (Netherlands)
Norge (Norway)
sterreich (Austria)
Polska (Poland)
Portugal (Portugal)
Romnia (Romania)
(Russia)
Schweiz | Suisse | Svizzera (Switzerland)
Slovensko (Slovakia)
Suomi (Finland)
Sverige (Sweden)
Trkiye (Turkey)
United Kingdom
North America
Canada
United States
Middle East
( Egypt)
(Israel)
( Jordan)
(Kuwait)
(Qatar)
(Saudi Arabia)
(United Arab Emirates)
