NATIONAL ECONOMICS UNIVERSITY

Bachelor of Business Administration

QUALITY MANAGEMENT
IKEA CASE STUDY

Name : Nguyen Thi Xuan Huong

AUGUST 10, 2021

HA NOI
 INDIVIDUAL ASSIGNMENT

IKEA is a furniture company founded and owned by Ingvar Kamprad, a Swedish billionaire.
Today, it is a global home furnishings company that provides consumers all around the world
with affordability, design, and comfort. This essay will analyse how IKEA implements the
concept of TQM comprehensively, employing its numerous principles in various parts of the
business and in general.
To achieve its position as one of the leading companies in the furniture industry. IKEA has
gone through many stages. IKEA has applied TQM to all aspects of the company's production,
management, and customer care systems. From the article, we can see that IKEA has directed
special attention to the quality of its products. They attempted to comply with ISO 9000
standards and continued to define and develop strict product requirements and make it possible
for monitoring and verification compliance. To be able to improve product quality and enhance
competitive position as well as reduce costs effectively, they must have effective policies so this
is why Total Quality Management (TQM) is a significant part of IKEA policy. First and
foremost, we must discuss IKEA's strategic plan; throughout the operation, IKEA employs
suitable methodologies for each era. In 1951, Kamprad made the decision to stop manufacturing
all other products and focus solely on wooden furniture, transforming the company's landscape.
In the beginning, IKEA established a reputation as a shop with exceptionally low pricing. It
released its first catalog in 1951, offering low-cost, elegant, and stylish furniture with the ease of
mail-order purchasing. Sometime later, under intense competitive pressure, IKEA launched its
first furniture showroom in Almhult in 1953, despite strong pricing rivalry at the time. However,
by opening the showroom, IKEA buyers may experience (touch, feel, and trust) the product
before making a purchase choice. Because of that momentum step, IKEA had an edge at the
time. By 1969, Kamprad had grown into the Danish market. In the 1970s, IKEA continued to
penetrate other European markets, with the first stores outside Scandinavia opening in
Switzerland (1973), followed by Germany (1974), France, Russia, and Canada, Australia,
and Hong Kong then IKEA grew rapidly and became one of the leading companies in the
furniture sector with more than 127,000 employees working in more than 200 factories
worldwide, achieving annual revenue of over 10 billion USD, of which, in 2012, the company
added 11 new stores in 9 countries. As of 2015, IKEA had 351 stores in 43 countries worldwide.
The firm intends to extend its market in Southeast Asia, including Vietnam because most of the
nations in this area are in the process of growing and have great opportunities for development in
the furniture industry. Next According to the TQM concept, the customer is a key factor
determining the success of the company. In this day and age, a company should commit to
satisfying its consumers, remembering why the company exists in the first place. There is
unlikely to be an organization if there are no consumers. The company has a very comprehensive
Customer Relationship Management system which enables the company to continuously
improve the quality delivered. They always bring customers great and new experiences. All
production, creative, and management processes in the company work effectively or not,
customers will be the ones who judge it so IKEA Always puts the customer first and then
impresses them. It has remained committed to value and service, always with gratitude for – and
exclusively with the intention of delighting – its customer base. As a result, they have a sizable
and loyal consumer base. IKEA has also used scientific technology in the creation of its
production lines to improve product quality and productivity. Previously, the company's major
raw material was wood, but in order to protect the environment, the company has created a way
to make products using recycled plastic and recycled glass: IKEA had launched a line of "anti-
waste" products, which include furniture and household items manufactured from recycled
wood, plastic, and glass. PS 2017 is a collection aimed at urban young people. Furthermore, Ikea
employs high-strength steel in its products to improve the usefulness and safety of its designs
while reducing the weight of the items, therefore lowering costs and contributing to the
environment. With enormous development potential, IKEA is always committed to the quality of
its products. IKEA furniture has made its consumers and partners pleased from the early years of
its formation until now, and its products are always looked forward to every release.
Furthermore, Ikea is committed to environmental protection, their growth is inextricably linked
to the duty to conserve natural resources. Since the primary material for their products is wood,
and they also manufacture things from recycled materials As part of its efforts to protect forests,
they also stopped the publishing of printed catalog publications in favor of an online
version. The company has also made every effort to embrace the process approach. The
corporation is divided into four major sections: From the manufacturing process to the dealers
and, finally, to the consumers worldwide. Ikea's processes are strictly supervised in order to
manufacture competent products. The four categories have immediate implications for the
organization's quality management system since any procedural purchases that result in the
production of defective products spell doom for the company. In terms of the supply chain, the
company has implemented the IKEA code of conduct, known as IWAY, which is intended to
examine and check the compliance of suppliers with the regulations in place. Similarly, sales,
wholesale, and distribution are correctly leveraged as a result of the company's stringent policies
aimed at quality improvement. Development is intimately connected to innovation and creativity.
Rather than resting on its success, IKEA has remained at the forefront of continuous
improvement and transformation. In order to accomplish continuous development, the firm has
worked hard to establish a value system that encourages innovation and continual improvement.
IKEA's designs are being modernized and becoming more environmentally friendly (furniture
made from recycled materials and using high-grade steel to increase safety) and they came up
with many interesting ideas for production. There were two examples of their innovation that
made them become more and more developed. Firstly, In 1956 After observing a staff carrying a
customer's table into their car, Kamprad had the brilliant idea of selling disassembled furniture to
make shipping easier. They can therefore ship more furniture in a single shipment while also
lowering shipping costs, allowing buyers to make more options. Secondly, It may seem gross,
but IKEA's latest print advertisement is amusing. Urine, using the same technology as a
pregnancy test, can help decrease the cost of a particular baby cot product. akestam Holst
Sweden has collaborated with IKEA to produce a one-of-a-kind print advertisement that
encourages pregnant women... to urinate on the advertising page.Peeing on this promo page will
change your life (get a 50% discount on baby crib products). After the urine comes into contact
with the specified paper, the 50% off baby crib product will appear directly below the original
price. The fact is that families do not need to bring wet printed flyers to IKEA to receive the
discount, all customers who register as IKEA Family members will receive the discount. Very
interesting indeed, but this ad has only appeared exclusively in a few women's magazines in
Sweden. The human factor is the key to any organization's success; an organization only grows
as its employees grow; the way Ikea approaches customers shows that their employees are
talented people. During training, new employees will be supported by a mentor, who is a
colleague who will answer all of your questions, show you around the department, and introduce
you to your coworkers. Then, in accordance with your training plan, you will do further training.
IKEA is a fantastic place to work where everyone can grow and collaborate with outstanding
colleagues. The company has attempted to include as many stakeholders as possible. To some
extent, this allows the firm to pull in the same direction and adhere to consistent quality delivery
standards.There is a framework in place to guarantee that defect communication is timely and
treated seriously. The firm employs a public relations manager who works hard to create user-
friendly and useful information. The firm wishes to engage in discussion with its stakeholders.
The transparency of the social policies as well as the inner workings of the organization is one of
its most notable features.Another concept of TQM is employee involvement and empowerment.
IKEA employees are actively involved in the community and report on community outreach
efforts on a monthly basis. Furthermore, IKEA employees usually get together once a week
outside of work. Employees that are involved in their communities create a sense of social
responsibility both inside and outside the workplace.The company has embraced a democratic
leadership approach, and thus employees can participate directly in the decision-making process,
which will make employees feel that their presence is important and that they are respected. As a
result, They will work more efficiently and that means the company will grow more and more.
The company has made a concerted effort to comply with ISO 9000 requirements. The
company's products have been attested to and are expected to conform with the national and
international legislations of all markets where the items are offered. There are tight specifications
in place, which compel suppliers to comply with the strict requirements.IKEA continues to
create and develop strict product requirements, as well as make monitoring and verification of
conformity possible. IKEA has a test lab that is highly useful during the product development
process in order to assure durable, healthy, and safe quality items. This laboratory has been
guaranteed and accredited in accordance with international standards.
In the recent past, the company's efforts to comply with ISO 9000 in the quality management
system have achieved amazing achievements. The organization's customer service departments
can collect a considerable amount of consumer input, which the corporation can use to develop
test techniques and products. In path-goal theory, there are four leadership styles: directive,
supportive, participative, and achievement-oriented. IKEA managers use a directive, supporting,
and participative leadership style in management. IKEA managers expect its staff to be active,
responsible, and autonomous in their behavior, critical in their thinking, and highly involved in
their work, as seen by IKEA's success. IKEA management engages with employees on issues,
listens to their feedback or thoughts, and makes choices in the best interests of the workers since
they feel the workers still need direction. Leadership increases performance by increasing
employee confidence, lowering job stress, and improving relationships and trust between
employees and leaders. Moreover, They encourage employees to participate in management by
always consulting with employees or asking their suggestions on the final decision. Therefore,
employees will be more likely to put more effort into their work. Kamprad is a prime example of
a brilliant and visionary leader with a strong entrepreneurial personality who establishes the
company's objectives and operational plans and desires control over the majority of all business
areas. Kamprad is a prime example of a brilliant and visionary leader. His inspiration makes
employees feel like they are an important part of the organization and helps them realize how
their job fits with the vision of the organization.
IKEA manufactures its products using a number of Total Quality Management principles.
The organization focuses on the Customer needs policy, which is a cornerstone of TQM. IKEA's
culture of continuous development based on customer feedback is a terrific place to start, but the
company still has a lot of catching up to do on the digital spectrum and in talking about it to
customers, despite the fact that there are so many relevant opportunities.

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