Communication in BusinessCommunication in BusinessSpring 2002Spring 2002

Practicing Business Practicing Business Communication – Case Project Communication – Case Project

#1 – IKEA#1 – IKEA

James CoersCharles Barkley

OutlineOutline

                          IKEA was founded by Ingvar Kamprad in 1943

as a mail order catalog.Ikea is a furniture outlet which produces low-

priced, high-quality furniture for the widest possible range of incomes.

Today Ikea is a 59 year-old company with $7 Billion dollars in sales annually, with 150

stores in 30 countries.

IKEA PhilosophyIKEA Philosophy

Ingvar Kamprad’s personal philosophy simply translates into a business goal that is to “create a better everyday life for the majority of people”

Further more it extends to give “freedom with responsibility” for all IKEA employees

QUESTIONQUESTION

What communication needs would a worldwide corporation with 150 stores in 30 countries run in to?

How does IKEA’s communication network help to minimize costs?

Why is it important for IKEA managers to travel to corporate headquarters and to meet face to face with top management and with each other?

What advantages do IKEA’s build-up teams offer to new employees?

What benefits does team training provide to experienced employees who comprise the build up team?

What does “freedom with responsibility” imply about IKEA’s communication climate?

How might managers communicate IKEA’s organizational culture to new employees?

ConclusionConclusionSome key points we feel that contribute to

the success of IKEA and its business communications practice

Communication ChannelsCommunication Channels

Computer networkEmails – between coworkers / suppliersMemo’sPhone conversations, Fax machinesPDA’sTele-conferencing / Video-conferencing

International marketplace – Conducting business with and in foreign

countries.

GlobalismGlobalism

Global Attitude Global Attitude

An attitude that recognizes both the diversity of the work force and the diversity of technology.

Systems TheorySystems Theory

IKEA acknowledges the interrelationship of an organizations environment, labor, and management

Open System Open System

IKEA promotes free movement of energy, information, ideas, data, people, and so on… across organizational boundaries

SynergySynergy

IKEA “build-up teams” creates Synergy—That is to say, whereby the combined and integrated talents, energies, abilities, and knowledge of organizational members are greater than the sum of the isolated efforts of the individuals