Q1. What is IKEA’s future strategy to grow its organization globally? In other words, what objectives are they planning to achieve?
IKEA are planning to expand globally by increasing the number of their stores worldwide by 50% by the end of the decade. This in turn will double company’s sales and number of customers.
Q2. IKEA are very keen to maintain their home-based corporate culture although they are marketing to many countries around the world. What have they focused on to develop this culture?
The company has largely focused of values, even in the selection process of the new employees. They also try to foster the unity among workers and avoid hierarchies. The story of the company’s foundation is remembered and this is the foundation for the present value-based approach.
Q3. What is their global product strategy?
IKEA’s products are divided into three sections. There are those that are universal world-wide, those with minor modifications such as darker or lighter wood, and the products that are customized according for the specific country. This customization is not common, however, and is done in rare cases. This strategy helps the company to save on production costs as well as logistics.
Q4. How have IKEA responded to the problems they faced in some countries. In other words, what steps did they take?
The company has been very decisive in responding to its problems. It has always taken a firm stand to uphold its values. In countries like Russia and France, the employees in high positions were fired. For instance, in France people holding the positions of country head, head of human resources, risk manager, and finance director were fired (Milne, 2012). In France, the ethics committee has been created and the workers had to go through a workshop on company’s values. IKEA’s spokesmen have also openly recognized the problems of the company, which is important.
Q5. If IKEA is to be successful, the head of marketing has to make sure the organization does ‘something” at the beginning of every year. What is that ‘something’?
Under current strategy, IKEA have to open from twenty to twenty-five new stores each year until the decade ends. This, of course, entail a whole set of issues to be considered, including extensive marketing campaigns.