Problems With Ikea Essay

615 words - 2 pages

We have analysed the IKEA case study "Managing cultural diversity" .Our analysis of key problems, recommendations and their limitations are summarised in the following document.HEADINGKey problem #1: IKEA suffers from a lack of innovation and faces the possibility of offering a very similar product base. This is due in part to the lack of fresh blood in the organisation. IKEA's policy of hiring the same genre of people leads to inhibiting diversity and innovation to meet change in new markets.Recommendation: IKEA should broaden its selection base of hiring people. Whilst not changing the core competencies required of key staff, a new emphasis should be placed on the hiring of people from a mix of backgrounds and personalities. This will promote diversity, infusion of new ideas and ensure the richness of the culture.Limitation: This diversity may however lead to lack of goal congruence and a distraction from the common goals. There may be a waste of resources to get such a diverse group to agree to a common viewpoint.Key problem #2: Not enough like-minded managers (Swedes) to manage stores.Recommendation: There are two options to solve this issue. Firstly, a solution would be to hire more Swedes with similar work ethos and cultural similarities. Secondly, another option is to promote successful managers from various countries to expatriate jobs in other geographies. This would not only achieve strong transplantation of talent but also build strong and committed global managers.Limitation: There may not be enough capable candidates in the overseas poll of Scandinavian expats. Additionally, looking at the second option of transplanting foreign mangers in businesses outside their home countries may foster feelings of resentment of locals, inhibiting individual advancement.Key problem #3: IKEA has not been proactive in accepting the specifics of new markets and tailoring some of its products to satisfy local markets.Recommendation: IKEA should preform detailed market research and studies...

Find Another Essay On Problems with Ikea

IKEA in Russia Essay

505 words - 2 pages Ikea set’s up the infrastructure, those objectives will be definitely reached (or are already now in 2008). Ikea is buying its 60-plus suppliers equipment and granting credit for investment and working capital, because Russian companies’ are having big problems with inability to borrow from the local banks. Some quotes in the article by Mr Dahlgren: “You have to think long-term in Russia. The biggest mistake other companies make

Marketing Concept in Practice at IKEA

4671 words - 19 pages function, excellent quality and durability, at prices so low that the majority can afford to buy them' .IKEA believes in working closely with manufacturers, suppliers, designers and other specialists. Expertise of these various stakeholders is pooled in to come up with innovative techniques to reduce costs so that these can be passed on to the customers. Its customer base consists of people who are actively seeking better value for money in their

IKEA Child labour case

2508 words - 10 pages The Swedish company IKEA designs and sells reasonably priced, 'ready to assemble' furniture. The company is on the way to becoming the world's largest furniture retailer (Normann and Ramirez, 1993). In 1994, IKEA were first confronted with the issue of child labour in Pakistan, following accusations from a Swedish television documentary that IKEA suppliers were using child labour in the production of carpets. One year later, in 1995, a German


2100 words - 9 pages . They like to feel as one. “We don’t just want to fill jobs; we want to partner with people” (Ikea, 2012). While many companies might publicize “outstanding employee relations” IKEA has stood with their word. On glassdoor, a website dedicated to employees and how they truly feel about a job, employees from many different positions in IKEA has rated them 3.6 out of 4 stars. “This is the best company to work for hands down. They care about their

IKEA India Entry Strategy

8086 words - 32 pages 42 different countries all over the world, selling products at low affordable prices for everyone. When IKEA began going international they ran into some problems as they did not do marketing research to learn about what the customer wants. An example is in Philadelphia, USA where customers complained about furniture not fitting with the American lifestyle. IKEA scrambled to gather information to regain their position in the international market


2589 words - 10 pages is the set of tools (4Ps) the firm uses to implement its marketing strategy. It includes product, price, promotion, and place. Additional Ps are People,Processes and Physical Evidence.3.3 How marketing mix related with the Service ProductIKEA catalog show is an important part of marketing strategy, which greatly promoted the IKEA product sales.IKEA's channel strategy is to set up independent stores around the world, IKEA design their own


2579 words - 10 pages retailing firms based on its unique concept that the furniture is sold in kits that are assembled by the customers at home.1.1 Operating strategyIKEA dose not manufacture its own products, but works through a complex network of suppliers around the world to help company maintain its low-cost position. Actually, it has 1,800 suppliers in 55 countries. By providing the manufacturers with technical and financial assistance, IKEA establishes durable

Shared Knowledge and Schemes Created by a Set of People

1061 words - 5 pages economies of multiple countries of the world. Today IKEA operates more than 300 stores in about 43 countries with employees numbering more than 139,000. There wide international presence has made their brand well recognizable around the world. IKEA pays a wide attention to the individual cultures of the countries that they have operations in. This is important because of the large number of employees belonging to different nationalities and

The Effect of Culture on People

3009 words - 12 pages applicants who have the good potential rather than a diploma (task orientation, Harrison.R.)[2]. Although their pragmatic approach to solve the problems and intuitive way of doing business suggest that they are risk taking but the managements insistence on only their ikea way suggests otherwise. It seems they have a fear of failure, which doesn’t go well with their low uncertainty avoidance national culture. Though Ikea's

Marketing: Case Project, making decisions - Luther Marketing - Company Case

729 words - 3 pages with certainty if it will be on the best interest of the company and if it will generate more success. Here IKEA is investing in its employees in order to provide and adequate form of pay depending on the area the branch is located in. And in return they are wanting for the employees to essentially become better at what they are doing. Increasing the minimum wage can generate many possible problems, but it depends on what point of view the organization is relying to make such investment. But the company will not know, same with everything, if risks are not taken, one will never know how successful or disastrous the action was.

Mision, Vision and Intent of Masco Cabinetry

1251 words - 5 pages Quality Cabinets fall under the Masco Cabinetry umbrella. The company also has diversified its offerings by introducing Denova Countertops in 2010, and more recently the Arbor Creek brand of ready-to-assemble cabinets to compete with stores like Ikea. Masco Cabinetry has also partnered with Lota Corporation in China to launch Merillat brand cabinets into the Chinese market creating international brand recognition. Weaknesses While Masco

Similar Essays

Marketing Concept Of Ikea Brochure Sport Management Essay

835 words - 4 pages goods which are available at IKEA stores. Image: pixabay Price: IKEA competes with various global retail chains as well as local supermarkets. Low prices constitute the IKEA vision, business idea and concept. IKEA makes low cost furniture for household and offices. It focusses on cost control and efficient operational details. This allowed IKEA to lower its prices over the decade to 2010 during a period of global expansion. IKEA allows

Ikea Case Analysis

917 words - 4 pages be done by increasing the company’s online presence, creating a new line of products directed towards the “baby boomers”, reduce the amount of catalogues in circulation, and increasing their brick and mortar locations. The problems which IKEA is facing are not different than what other companies have previously dealt with. This being said, the solutions to the stated problems are not simple. One of the largest problems which IKEA is currently

Ikea Case Study

1695 words - 7 pages stick to regional organization because functional organization is not suitable for IKEA. The approach is usually best adopted where operations in one country are all at one type. Problems are likely to arise if a company has a plant in the country and also exports to that country. The regional manager are the keys executives at headquarters; they have full and sole responsibility for all activities in their operation with information, analysis and

Ikea Operations Management Essay

4780 words - 19 pages successful to a competitive lead.This reports focus on IKEA, and how IKEA operations management has made them one of the leaders in retail in the world, with a deep analysis of IKEA corporate organization and operations management.IntroductionIKEA is the most successful furniture retailer in the world. The product line consists of well-designed furniture at low prices. During 2011, IKEA has reported 25.2Billon Euro total revenue and 2.966Million