History and Primary Business
IKEA is an established innovated furniture company; founded by Ingvar Kamprad in the early nineteen hundreds. Ingvar Kamprad was raised in Sweden and as a boy he was a young entrepreneur. He began his business career by buying [fire] matches in bulks and selling them individually to make a profit in his neighborhood. As his business continued to bloom he expended to selling fish, seeds, Christmas decorations, pencils and ballpoint pens. Kamprad was clever in utilizing resources by delivering his goods by bicycle (IKEA History, 2013).
IKEAs unique name was established by Ingvar initials and the farm and town he was raised in. His business started out by selling simple things, not until 1951, was when Ingvar had a clear focus on selling furniture. Pressure from manufactures forced suppliers to boycott IKEA, which led to the decision to design its own furniture. Creating their own furniture forced them on creating low priced furniture (IKEA History, 2013). By the 1980s IKEAs store started the first open warehouse feel that today you see at every IKEA store. By the same time IKEAs market expanded from Sweden to the United States (IKEA, 2012).
Mission and Value Statement
Like many companies IKEA strives to please its consumers (Gadzala, 2011). IKEA has become a household name, from movies to TV shows you can always count on seeing IKEA furniture. Their values are simply taking care of their customers and the planet. Their primary focus is to develop cheap, safe and modern furniture for everyday consumers. Like Apple, INC. they want to develop a lifestyle not just a product (Isaacson, 97). “At IKEA our mission / vision is to create a better everyday life for the many people. Our business idea supports this vision by offering 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” (Ikea, 2012).
As it was mentioned before Sweden was where Ingvar Kamprad created IKEA. Many of Sweden’s culture, was transmitted when the company got sold to a firm in the Netherlands. In Sweden it is uncommon to see your boss as a boss. They have a very informal way of running businesses; their top managers are never unreachable for their first line managers. They view their “boss” as another team member so every employee will have a chance for their concerns to be heard.
Location of Corporate
In the Netherlands it is uncommon to have a female as a leader while in Sweden it is very common. The Netherlands has a high masculinity rate (Ahlstrom and Bruton, 54) while it is the opposite in Sweden (Moon, 2013). While in both countries managers rarely take on the authoritarian approach (Ahlstrom and Bruton, 250) this transforms into a “remarkably efficient and contributes to making the country rich, innovative and successful” (Moon, 2013).
Language Spoken and Continents
An issue that most firms may encounter while being bought out by...