Minicase: Innovation at IKEA

Presented by:Irwanti Martha & Randy Wiska

Outline•Discuss the three input components of the Congruence Model as they apply to success of IKEA.

Question 1

• Consider Schein's four key organizational culture factors. What examples can you identify within the IKEA organization that contributes to the company's strong corporate culture?

Question 2

• Based on the level of technological complexity and the degree of environmental uncertainty present at IKEA, what type of organizational structure would you expect?

Question 3

• I (Ingvar ) Founders first name• K (Kamprad) Founders last name• E (Elmtaryd) Farm where he

grew up• A (Agunnaryd) Home village

The IKEA Vision

“The IKEA vision is to create a better everyday life for the many people. We make this possible 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.”

Minicase 1:Discuss the three input components of the Congruence Model as they apply to success of IKEA.

Minicase 1

Environment

• Outside Organization: Consument, Market, Government, Society, Competitor, Technology, Environmental uncertainty

• Inside Organization : Company policy, Employee treatment .

Resources

• Tangible resource: Increased sales, Profits, Market share, Information about customer want & need

• Intangible resource: Customer’s perceptions , Positive organizational culture, Commitment & dedication

Minicase 1History• In 1943, IKEA was founded by Ingvar Kamprad• Based in Sweden• Bright blue and yellow• Originally and Now IKEA • In 1951, the first IKEA furniture catalog was published• 1955 IKEA begins designing its own furniture• 1985 The first IKEA store opens in the USA• 1993 IKEA reaches 114 stores• 2012 July IKEA reaches 300 stores• IKEA numbers 120,000 employees in 300 stores in 44 countries

Minicase 2: Consider Schein's four key organizational culture factors. What examples can you identify within the IKEA organization that contributes to the company's strong corporate culture?

Myths & Stories: Ingvar Kamprad

Rituals: Hiring Process & Founder’s

Regular Visit

Language: Naming of Products

Symbols & Artifacts: Building & Decoration

Minicase 3: Based on the level of technological complexity and the degree of environmental uncertainty present at IKEA, what type of Organizational Sturcture would you expect?

Organizational Sturcture • Horizontal Complexity• Vertical Complexity• Spatial Complexity

References• http://www.ikea.com/ms/en_US/about_ikea/pdf/FF

09_GB.pdf• http://www.ikea.com/ms/en_US/about_ikea/facts_

and_figures/index.html#• http://en.wikipedia.org/wiki/IKEA• www.ikea.com

Thank You!