Q1. If you were the CEO of IKEA what is so important that you have to do at the beginning of every year for the organization to understand the future market trends.
As the CEO, I would lead marketing research in the targeted markets and brief the co-workers about the planned future expansion with the full view of the company’s culture, which is the company’s strength. Therefore, the CEO should have a strategic plan and inform the employees about the vision of the Company about the changing trends and maintain IKEA’s culture.
Q2. What are the strategies and actions taken by IKEA to focus on IKEA’s culture?
The strength of IKEA rests on its robust culture defined by the company values and vision that guide its operation. Some of the strategies adopted by IKEA include recruitment based on values, beliefs, and vision, and the company makes much effort in developing and strengthening these values within the employees to ensure togetherness, humility, and hard work (Milne, 2012). IKEA considers its culture as the foundation of its existence and mostly subject the would-be employees to a culture quiz on the company’s website during recruitment to judge their suitability. Ikea’s strategy also downplays skills, experience, or academic credentials, but stresses on values and beliefs (Milne, 2012). Similarly, to maintain togetherness, IKEA considers all employees as co-workers, in addition to a culture of non-tolerance to corruption.
Q3. What is IKEA’s new plan for growth strategy to become the world’s market leader in furniture?
IKEA plans to increase its number of stores by 50% globally by the year 2020 and to double its sales volumes and customer numbers (Milne, 2012). This is to be achieved by offering tailor-made quality products based on the diversified market needs at cheaper prices. This strategy also includes cost leadership by adopting large scale production of diversified designs using cheap but quality acquired raw materials within the countries of IKEA operation to minimize shipping and logistics costs. This plan is to ensure IKEA remains the world’s market leader in furniture products.
Q4. How does IKEA adapt to global market needs using its many set product ranges?
IKEA produces products that are tailor-made to specific markets and in case products fail to perform well, the company is flexible to replace the products considering the market needs as was the case in the U.S. in the 1980s and 1990s (Milne, 2012). To meet the global market needs, IKEA splits its products into three categories; global products, products with local differences and products designed precisely for a particular country.