Hr: Ikea

1464 Words6 Pages
Ingvar Kamprad Elmtaryd Agunnaryd (IKEA) was founded by a 17year old boy Ingvar Kamprad in a small town of Smaland in Sweden and is now the largest furniture retailer in the world. As of 2010, IKEA has 127,000 co-workers in 41 countries generating annual sales of more than 26 billion EURO (IKEA Group 2010, P25, 26). IKEA main business strategy is focused cost leadership strategy (Ireland, Hoskisson, Hitt 2009) which is an action plan that a firm develops to produce goods or services for a narrow market segment at the lowest cost possible. IKEA market targets are customers desiring style at a low cost. IKEA offers home furnishings with good design, functions and acceptable quality. In order to successfully use its focused cost leadership strategy, IKEA focuses on lowering its costs and understanding its customers’ needs. To keep the firm’s costs low, IKEA’s engineers design low-cost prefabricated furniture that customers can easily assemble themselves and making the furniture flat-packed so that customers can bring home on their own without incurring additional delivery or assembly costs. In order to provide ideas to the many customers, IKEA arranges its products in room settings to allow them to get ideas and inspirations from (IKEA Group 2010, P7). IKEA vision is to create a better everyday life for the many people which is possible thru their business idea 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 (IKEA Group 2010, P6). IKEA human resource idea is to give down-to-earth, straight forward people the opportunity to grow, both as individuals and in their professional roles, so that together we are strongly committed to creating a better everyday life for ourselves and our customers (Inter IKEA Systems B.V 1999, P1) In order for IKEA to succeed in their
Open Document