Professional Documents
Culture Documents
Presentation Ikea
Presentation Ikea
Presentation by: Mona E Thorvaldsen Kate Mulvana Joan Kawalewale Jodie Evans Tom A Trosterud
Agenda
About IKEA History Key Developments Organisational culture Cultural web Tools of analysis Conclusions
About IKEA
Global furnishing brand Founded by Ingvar Kamprad Brand name Unique organisational culture & leadership style Kamprads Philosophy Franchisees Market position & share
History of IKEA
1943 Founded: Individual sales 1945 First Advertisement 1951 New product ranges & catalogue 1953 Furniture exhibition 1958 First IKEA store 1963 - Expansion into Norway 1980s USA & Eastern European markets 1997 Internet
Maintaining
a strong IKEA culture is one of the most crucial factors behind the continued success of the IKEA concept
Ingvar Kamprad
Organisational culture
Shared norms, beliefs and values Leads to collective behaviour Segmentation of the organisational culture using the cultural web
Cultural Web
Stories Symbols
The Paradigm
Power Structures
Control System
Organisational structures
Routines
Company customs Production processes Distribution
Stories
Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Rituals
Rites Rites Rites Rites
of of of of
The Paradigm
Power Structure s
Control System
Organisational structures
Stories
Embedded in organisation Reminder of organisational values The IKEA stories
Entail
The Paradigm
Control System
Organisational structures
Symbols
Symbols include acts, objects and Logos IKEAs symbolic action simplicity IKEA Logo Scandinavian heritage
Stories Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Power structures
Inverted pyramid No barriers Customer needs and preferences
Stories
Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Organisational structure
Flat structure Informality Open communication
Stories Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Control systems
Emphasis on a reward system Big thank you event
Stories
Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Paradigm
Strong corporate culture Swedish heritage Simplicity tradition Functional quality products
Stories Symbols
The Paradigm
Power Structure s
Control System
Organisational structures
Performance-enhancing cultures
Goal alignment High levels of employee motivation Better ability to learn from the past
IKEA Strategy
Bowmans Strategy Clock Hybrid strategy
Low
DIFFERENTIATION price High IKEA Differentiation Hybrid
Low Price Low Price/Added value Low PRICE High Differentiation Focus Differentiation
Large
knowledge transfer
Globalisation
National
cultural differences
Individualism Index
Sweden
France
USA
knowledge transfer
Globalisation
National
Planning
cultural differences
permission
Conclusion
Strong consistent culture Link between culture and performance Synergy between culture and strategy Causality?
References
Allen, S. (2005) Ingvar Kamprad IKEA founder and one of the worlds richest men [Internet]. Available from: <http://entrepreneurs.about.com/cs/famousentrepreneur/p/ingvarkamprad.htm> [Accessed 12th April 2005]. Brown, A. (1998) Organisational Culture, 2nd edition. Prentice Hall, Harlow pp.240-241. Cardwell, D. (2005) Red Hook resident group sues to block an IKEA store. New York Times 154 (53122) Cabinet Maker Chandler, A. D. (1990) Response to the contributors to the review colloquium on scale and scope Business History Review 64 (4) pp.736758. Edvardsson, B. and Enquist, B. (2002) The Ikea Saga: how service culture drives service strategy. The Service Industries Journal. 22 (4) pp.153-186. Guardian Newspaper. (June 2004) The miracle of lmhult. [Internet]. Available from: http://www.guardian.co.uk/g2/story/0,3604,1240462,00.html. [Accessed 10th April 2005]. Harris, P. R. and Moran, R. T. (2000) Managing Cultural Differences, 5th ed. Gulf Publishing Company, Houston, TX. pp.2-311. IKEA, (2005) IKEA [Internet], Available from: <http://jobsat.ikea.co.uk/uk/work_intro.asp> [Accessed 16 April 2005]. Johnson, G., Scholes, K. & Whittington, R. (2005) Exploring Corporate Strategy Text and Cases. 7th ed. Prentice Hall, Harlow. Kling, K. and Gateman, I. (2003) IKEA CEO Anders Dahlvig on international growth and IKEAs unique corporate culture and brand identity. Academy of Management Executive. Vol. 17 (1) pp.31-37. Kotter, J. P. and Heskett, J. L. (1992) Corporate culture and performance. The Free Press, New York. Magonelly, L. (2002) How Ikea designs its sexy price tags. Business 2.0. (10) [Internet], Available from: Ebsco host [Accessed 20 April 2005]. Mintel (2004) Furniture Retail UK August 2004 [Internet], Available from: <http://reports.mintel.com/mintel/searchexec/> [Accessed 16 April 2005]. Normann, R. and Ramirez, R. (1993) From value chain to value constellation: designing interactive strategy. Harvard Business Review, July-August pp.65-77. Porter, M. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. The Free Press, New York. Rowe, S. (2005) Judge flattens Ikeas challenge. Estates Gazette, 508, p.28, Available from: Ebsco Host[1] [Accessed 16 April 2005]. Quick MBA. Strategic Management. Porters Five Forces: a model for industrial development. [Internet] Available from <http://www.quickmba.com/strategy/porter.shtml> [Accessed 20th April 2005]. Sancovich, A. (2002) The IKEA Philosophy [Internet]. Available from: <http://www.johnson.cornell.edu/leadership/casestudies/IKEA.pdf> [Accessed 2nd April 2005].