PRINCIPLES

OF
STRATEGY
GROUP 7 – QT19
I. ABOUT IKEA

• In 1943, IKEA was founded by Ingvar Kamprad.

• Based in Sweden.

• World’s largest furniture retailer.

• World’s leading home furnishings retailer.

II. POLITICAL
•IKEA operates in more than 41 countries. Each country's
political decisions and policies are crucial for the company.

•One thing is for sure: all countries benefit from political

stability. Without it, economic stability is impossible.

•Meaning, IKEA may lose profits in one location over another,

depending on who is in charge and what they stand for.

•On the flip side, a good relationship is a blessing for IKEA. India
and China have become more open to international brands.
III. ECONOMICAL

 Solve the economic crisis of

2009 with a cost leadership
plan
 Due to the weakening of the
dollar, IKEA has doubled the
amount of locally purchased
manufactured goods in the
UK
 Fluctuations in fuel costs
IV. SOCIAL
- Socio-cultural factors have a profound impact on business operations.

- Different countries have different cultures, what is good in one country may be a sin in another.

- IKEA is about caring about the values and culture of the people of the country in which IKEA
operates.
V. TECHNOLOGICAL
• IKEA Solar Panel
VI. ENVIRONMENTAL

- Providing sustainable products and services has become

IKEA's great mission

- IKEA has released its 2030 sustainability strategy

document that emphasizes the use of only renewable and
recycled materials.

- IKEA is investing heavily in solar and wind panels,

sourcing wood and cotton from sustainable sources.
VII. LEGAL
• - Labors form the backbone of a manufacturing business

• - IKEA needs to follow the labor laws of those countries

where they are setting up manufacturing units.