Visions:

IKEA: 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. HERMAN MILLER: Mankind's future depends on meeting the needs and aspirations of a growing global population, while enhancing and protecting the ecosystem on which all life depends Herman Miller is committed to sustainable business practices in everything we do. Our corporate environmental goals are a key metric of our business success.

Products:
IKEA: Ikea s products range from departments like: Kitchen Bathroom Living room Bed room Hallway Workspace Bathroom Laundry and many more HERMAN MILLER: Herman Miller s products range from departments like: System furniture Sitting Storage and filling Ergonomic solutions Accessories Desking , table and furniture

Operations

IKEA: Kamprad's vision has been the driving force behind IKEA's success. IKEA hires its own designers, who have received numerous awards over the years. Kamprad believes that the company exists not just to improve people's lives, but to improve the people themselves. The self-service store design and ease of assembly of their furniture are not merely cost controls, but an opportunity for self-sufficiency. This vision is reinforced in their advertising and catalog, as well.

Cont d
y Its most differentiating factor was its flat packaging system which had significantly

improved its operational efficacy.

y offer products at 30% lower costs. y IKEA maintained a long-term relationship with its suppliers and assisted them in

improving their processes so that it would help in cutting costs further. The company did not offer free home delivery as other furniture retailers did and expected its customers carry the products with them in their vehicles and assemble the products themselves.
y IKEA first established a target price before designing a product.

HERMAN MILLER: Operates through several focused businesses brands,and distribution channels, including Herman Miller, Herman Miller Healthcare, Brandrud, Nanschoff, Geiger International, Herman Miller for government, Meridian, Convia, Colebrook Bosson Sanders (CBS), Herman Miller for the Home, and Independently owned dealerships.

Cont d
y To address customers needs for design, specification, manufacturing, delivery, and

installation process support, Herman Miller continually applies innovative practices and technologies to its operations network linking suppliers and dealers to its manufacturing process. established a fruitful relationship with the Toyota Supplier Support Center. Unique to the office furniture industry, the relationship enabled the company to adopt and implement world-class, lean manufacturing processes based on the Toyota Production System principles. Through the Herman Miller Production System (HMPS), the company dramatically reduced manufacturing square footage and inventories, cut lead times for standard product from 8 weeks to as little as 10 days, and significantly grew sales and profitability.

y In 1996, Herman Miller began an aggressive drive to reinvent its operations and

Another component of the HMPS lean initiative focuses on the company s people

and their development, complementing Herman Miller s long history of employee participation. Herman Miller believes its success in achieving operational excellence depends on the motivation and thinking of its people to solve problems and drive improvement.

Social Responsibility
I E :
y Low price but not at any price y A natural part of daily business y Responsibility in the supply chain y - IKEA s code of conduct: The IKEA way on

HERM N MILLER: "For us, contributing to a better world takes many forms--environmental advocacy, volunteering time, and contributing to the health and well-being of our community," said Brian Walker, Herman Miller's President and CEO. "However, we understand that it is not so much a goal as it is a responsibility." y Environmental Advocacy y Community Service y Inclusiveness and diversity y Health and well-being

y y y y y

purchasing Home furnishing products ( IWAY) Challenges to IWAY Focus area: child labor Focus area: forestry IKEA is a member of a Business for Social Responsibility, BSR International co-operation for reducing climate change

Strategy
IKEA:  Self Assembly feature cuts operational & transportation cost  Concentrate on individual marketing rather than mass marketing  Limited warranty and service model after that  Opening small retail store and segmented marketing  Diversity in Business  Country specific management style  Standardized retailer selection  Consistencies among global strategy  Perceived as a value brand, following their affordable solutions for everyday living tagline  Image of being hip and modern has been called a one-stop sanctuary for coolness  Maintain Swedish influence  Store expensive  Highly anticipated store openings

Strategy
HERMAN MILLER: y Production System ( Innovative practices and technologies ) y Employee ownership ( Entitled to own stock in the company ) y Economic value added: Using performance indicator system called Economic value added (EVA) y Innovation: Since 1945 Herman miller phased out its traditional furniture to concentrate on contemporary, soon to be known as modern furniture y String of management innovations shareholder value based decision making , lean production , supplier and dealer production