IKEA Company Harvard Case Solution & Analysis

IKEA Company Case Solution


IKEA is a furnishing company, which was founded by Mr. Ingvar Kamprad in 1950’s. He started his business from Southern Sweden by selling matches, flower seeds, decoration items for Christmas trees, and cards which are givenat greeting ceremonies. Moreover, he ended up with pen and pencil business and he was an entrepreneur started business from the very small age of 5(IKEA).

The company is owned by Mr. Ingvar, who grew up at a small village known as Elmtaryd and Agunnaryd. He is a very down to earth person, and humble who believes in humanitarian. His company’s vision describes the fact of unique identical idea towards his thinking because he wanted to make a better tomorrow for as many people as he can. The unique selling point was to sell a wide variety of home furnishing products with a minimal cost so that many people can easily afford it. Furnishing the home in a very beautiful way with a better design, which is called a democratic design, is the mission of IKEA. The sales turnover is about 28 billion pounds and comprises of 150 thousands employees, holding 315 stores in several countries covering almost all the continents in the world. Their value proposition highlighted their internal communication between the employees and others who are working under the tag of IKEA.

IKEA represents the sentiments of the people by describing the fact that home is more than the furniture when dreams come reality, every moments become memorable and the deign offered by IKEA can make lives easier, and comfortable. They design the products in such a way that it distinguishes the customers’ needs and desires. IKEA focuses on bathrooms and bedrooms because it believes that customers deserve more attention because every day starts and end from home.Therefore,the catalogue is designed in away that attracts the bathroom and bedrooms with unique ideas.

Analysis of the Company's Internal Communication

The employees of IKEA are high motivated people with simplicity, striving to meet reality, constantly being on the way, cost conscious, humble and have strong will power.

Great organizational culture, environment and the mutual collaboration of employees require a high amount of effort which had been taken by IKEA. It needs to set a goal which is based on values, ethic, code of conducts and this isnot an easy job to incorporate.The digital strategy promotes innovation to itsco-workers. They are using their own intranet. The Intranet of IKEA is one of the core communication channels. It synchronizes all the global, regional, national and personal information. It connects different employees working in different continents to see different content depending on their location.

IKEA’s internal communication is strong because they are investing for their co-workers’ development by organizing a variety of internal training programs for those employees who want to learn and promote their skills for the growth of the company. Any employee working in any branch of IKEA can get a discount. The famous tradition of Swedish, which is known as Fika is a time to share ideas, suggestion, connect and relax with all the colleagues. During Fika some of the best ideas and decision come up.Internal Communication consists of formal and informal channels.(Welch)

Formal Channels

IKEA adopts some formal channels of communication like upward, downward or horizontal. This is because it helps the employees to get motivated and give frequent feedback. The Human resource management of the company plays a vital role in accumulating the internal communication. Downward Communication
The higher management at IKEA has the authority to command the employees regarding the Do’s and Don’ts of the company. With the help of downward communications they have maintained the hierarchy which explains the “Who report to whom” terminology.Moreover, it is not essential for company as it may get delayed because of improper feedback. However, it helps the co-workers and brings awareness among them regarding the company’s objective, mission and their aim or goals. It establishes discipline in the organizational structure........................

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