IKEA Introduction – Brief History of IKEA: In 1943 Ingvar Kamprad, the founder of IKEA, starts IKEA. – The I stands for Ingvar, K for Kamprad, E for Elmtaryd (the name of his family farm) and A for Agunnaryd (the name of the village he lives in). – In 1948 Ingvar built a small shed on his family’s farm where the milk man would pick up goods and take it to the train station to be shipped to customers. – During the 1950’s IKEA started to sell furniture at fairs. – In 1958 IKEA opened their first store.
In 1963, IKEA started to expand internationally currently having stores in over 35 countries. (can add more or delete if want) Objective – To study the effectiveness of business level and the international strategies of IKEA Scope – Business Level Strategies (general): define what business level strategy is, explain differences between business level strategies and the risks each strategy has. – Business Level Strategies IKEA: discuss their strategies versus their competitors (if they even have competitors) Study the prior years of IKEA and see if business has been improving. (Should use accounting for this ex. ratios, in actual report do graphs) – Discuss if the business strategy is working? Why is it working or not working? Improvements in IKEA’s strategy – Performance evaluation of IKEA’s strategy 200? -2009 – Finding – Recommendation – Should try to include the following items in Scope: • Value Chain model • 5 M’s • Porters 5 Forces – Eight Performance Measure • Firm Survival, Accounting measures, • Multiple stakeholder approach • Balanced score card Corporate social responsibility, • sustainability and triple bottom line – Competitive advantage • Strengths/weaknesses – Environments • External, • Internal – Industrial Organization model – Stakeholders – Assets • Tangible • Intangible Abstract/Synopsis 1. What we want to study? The study of IKEAs Business Level Strategies on an international basis. 2. What are the factors you are considering? IKEAs expansion and distribution strategy.
Uniqueness of the product 3. What do you feel is the problem of issue? (First need to find out if there are any problems)Methodology – Both qualitative and quantitative – Use their website as it has many resources and facts Schedule of events – time frame – Project Proposal: September 29th – Literature Review: October 6th – Data Collection: October 12th – Data Analysis: October 26th – Complete Written Report: November 16th – Completion (presentation): November 26th Conclusion – Is the company being successful? If not, how can they improve? References – IKEA website: www. ikea. com – Plan to use resources in library such as online journals.