IKEA Case Study Example | Topics and Well Written Essays - 2000 words

IKEA - Case Study Example Now, employees need motivation because it gives them more reason to work, other than the fact that they need to earn their fixed salaries. They need to have more reasons to get up everyday, go to work and try their best in their tasks. It is important to understand employee behavior because without this, companies would definitely lose profit and gain a deficit in their output. IKEA, a Swedish home furnishings retailer, is known as the world's largest designer and retailer of well-designed, inexpensive, and functional furniture for the home. (IKEA: A Natural Step Case Study 1998) A Dutch-registered organization runs IKEA and it has put in 15% improvement annually in this past ten years. INGKA Holding BV (the umbrella company of IKEA) is wholly owned by the Stitching INGKA Foundation, a non-profit foundation registered in the Netherlands. Millions of customers visit their 378 stores in about 36 countries, with 30 more set to open this year. Most of these stores are located in Asia, Europe, Canada, Australia and the United States. About 11, 000 products in IKEA's line are shown in the 80 million catalogues that they distribute. As for the manufacturing itself, IKEA does this in their own production facilities with the help of their 2400 suppliers in 65 countries. IKEA also boasts of having a hold of employees totaling to 36, 400. In 1943, IKEA was founded by Ingvar Kamprad, then a 17 year-old boy in Sweden. IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county (Agunnaryd, in Smland, South Sweden). (Wikipedia 2008) Kamprad shortly transformed his venture into a mail order service which sells furniture. In 1953, he opened the first IKEA showroom. His primary strategy was to allow for the creation of ground-breaking furniture which would give customers the ease to construct the products themselves and purchase them at an affordable price too. Now, the IKEA employees are at the customers' disposal for inquiries and such but the customers are free to select, order, take and construct what furniture they pick. The money saved by IKEA in expenditures was used to give customers discounts. Not long after, the stores got bigger and eventually started to carry eating places like restaurants and recreational facilities for children like play areas. Kamprad distinctively said in December 1976 that "What is good for our customers is also good for us in the long run." (IKEA: A Natural Step Case Study 1998) What IKEA does Since 1990, IKEA has shown interest and action in putting forth an environmental thrust. With their Natural Step Framework, they aim to create a proper environmental plan. The said plan in effect brings about changes in IKEA's products and services in order to conform to their frameworks principles and demands. In 1992, the environmental policy was transformed into an Environmental Action Plan describing concrete and practical measures for the mid-1990s. (IKEA: A Natural