Ikea Scenario

IKEA Scenario

In what ways has IKEA managed the global environment over time (Jones, 2013, p. 89)? How has the environment affected its operations?

IKEA’s ability to provide customers with well designed, well made, affordable contemporary furniture is the result of the way it expands globally and operates its global store empire. IKEA has adopted a global approach, deriving from the personal values and beliefs of its founder, Ingvar Kamprad. This approach focuses on simplicity, attention to detail, cost consciousness, and responsiveness in every aspect of its operations and behavior. (Jones 2013, p. 88). Ingvar Kamprad cost-conscious values are taught to all employees as well as his view that every person who works in the global empire of IKEA, plays an essential role and obligation to everyone else.

The employees of IKEA play an active role in the success of the company. IKEA stores operate on the simplest rules and procedures possible, with employees expected to cooperate to solve problems and get the job done. Employees are required to learn about IKEA’s global corporate culture by performing jobs at the bottom of the ladder, and they are quickly trained to perform all the various jobs involved in store operations. Employees believe that if they buy into IKEA’s work values, behave in ways that keep its growing global operations streamlined and efficient, and focus on being one step ahead of potential problems, they will share in its success. Rapid promotion is possible for those who demonstrate the enthusiasm and togetherness that show they have bought into the IKEA culture. (Jones 2013, p. 89).

IKEA’s global approach to operate consciously, the treatment of its customers, the training provided to its employees and the maintenance of a bureaucratic environment for all has paid off for the company. IKEA is the largest furniture chain in the world with over 270 store in 25 countries. (Jones 2013, p. 88).

“How would you explain the rationale behind the success of IKEA’s approach to managing its environment?” (Jones, 2013, p. 89).

The rational behind the success of IKEA’s approach to managing its environment is that it helps to eliminate the pressures and forces surrounding the company related to employees, customers, and other outside stakeholders. The company provides quality goods to customers, trains employees to partner with the company, not just work for the company, which influences employees to treat customers good, because they feel good and feel appreciated. IKEA manages its external environment by focusing on what the average customer wants, simplicity, attention to details, cost consciousness and responsiveness.