Minicase: Innovation at IKEA
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Transcript of Minicase: Innovation at IKEA
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Minicase: Innovation at IKEA
Presented by:Irwanti Martha & Randy Wiska
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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
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• I (Ingvar ) Founders first name• K (Kamprad) Founders last name• E (Elmtaryd) Farm where he
grew up• A (Agunnaryd) Home village
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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.”
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Minicase 1:Discuss the three input components of the Congruence Model as they apply to success of IKEA.
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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
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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
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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
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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
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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
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Thank You!