NATIONAL ECONOMICS UNIVERSITY

Bachelor of Business Administration

QUALITY MANAGEMENT
IKEA CASE STUDY

Name : Nguyen Thi Xuan Huong

ID : 11182133
Class: EBBA 10.3
Lecturer : Ph.D. Vu Hoang Hiep

AUGUST 10, 2021

HA NOI
 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.
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 proceeded to design and create
strict product standards, as well as make monitoring and verification of conformity feasible. 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

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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.

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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”. 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

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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 adopted a Path goal theory, allowing workers to engage directly in decision-making,
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

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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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References:

Dudovskiy, J., 2019. IKEA Business Strategy and Competitive Advantage: Capitalising on IKEA
Concept - Research-Methodology. [online] Research-Methodology. Available at:
<https://research-methodology.net/ikea-business-strategy-competitive-advantage-capitalising-
ikea-concept/#_ftn2 > [Accessed 2 November 2019].

Pontefract, D., 2016. How IKEA delights its customers. Forbes. Available at:
https://www.forbes.com/sites/danpontefract/2016/06/08/how-ikea-delights-its-
customers/ [Accessed August 9, 2021].

Cascade, 2021. Strategy study: How ikea became a household name with digitalization,
consistency, and experience. Strategy Study: How IKEA Became a Household Name With
Digitalization, Consistency, and Experience. Available at: https://www.cascade.app/strategy-
factory/studies/how-ikea-became-a-household-name [Accessed August 9, 2021].

Potenza, A., 2018. The pee-soaked IKEA PREGNANCY ad is actually more than just a
gimmick. The Verge. Available at: https://www.theverge.com/2018/1/17/16897774/ikea-
pregnant-women-pee-ad-mercene-labs-technology-heart-disease-diagnostics [Accessed August
9, 2021].

Anon, 2016. Noi that doc dao tu vat lieu tai che cua IKEA. Designs. Available at:
http://designs.vn/tin-tuc/bo-suu-tap-doc-dao-tu-vat-lieu-tai-che-cua-
ikea_125886.html#.YQ6UZIgzbIU [Accessed August 9, 2021].