Innovations at Ikea Essay

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Kristen Castillo BBA 450 Week 12- Innovation at IKEA 1. The three inputs of the situation that have helped in the success of IKEA are tasks, organization, and environment. At IKEA, co-workers are given the opportunity to innovate and come up with new processes in order to cost save. This gives the co-workers a high degree of task autonomy. They still have to assist customers and provide great service but they are empowered to innovate. The organization and structure has helped IKEA succeed. The leaders lead by example by being cost conscious in their personal lives. This culture is passed down to the co-workers within the company. The company works hard to establish new products and furniture designs in order to keep up with customer needs. They also to reduce costs in order to provide products to customers at a low retail costs. Having the low priced furniture and accessories help IKEA gain loyal customers. Because of the quickly changing global environment, the leaders at IKEA have focused on reducing costs within the company and becoming highly efficient in order to pass on the savings to the customers. 2. Schein’s four culture factors include: myths and stories, symbols and artifacts, rituals, and language. Symbols can be found in IKEA stores that help customers associate the company and brand. An example of this is the big blue warehouse and dimly lit showroom. All of the stores have the same exterior and interior, which makes customers able to associate the store with a uniform brand. Another symbol of IKEA is the type of furniture they sell. They sell furniture that must be self-assembled and easily transported. This is very unique to IKEA and relates back to the culture the company established in 1950s. Language is also shown heavily in IKEA. An example of this is the names of the furniture brands or models. All of the furniture names are

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