BACKGROUND

IKEA: Scandinavian Style

What started with one entrepreneur selling staples to Swedish families during the post-WWII economic boom has grown exponentially into a worldwide phenomenon: IKEA. Yet, the organization still retains its original cultural emphasis on such qualities as humility, common sense, and honesty. The company's mission is to bring stylish, yet practical home furnishing solutions to the masses at affordable prices, which it achieves by negotiating smart deals with suppliers and selling assemble-at-home products through warehouse-like stores. Growth has come in two forms: one being the tremendous number of products now offered by the company, and the other being the number of stores the organization has opened and plans to open in new markets globally. However, global expansion has not always been smooth. The organization has had to learn some valuable lessons in adapting its products and processes to fit some markets, lessons that it hopes to apply as it continues to enter new markets, such as India.

CASE QUESTIONS:

Conduct an Internet search and library research to answer the following questions:

1. Evaluate IKEA's approach to entering India. What do you think IKEA learned from its previous experiences with international expansion to guide its entry into India?
2. Describe IKEA's unique culture. Do you think it should try to maintain the same strong culture values while expanding globally? Explain.
3. How would you describe IKEA's approach to organization design?
4. How does IKEA stay innovative? Do you think its approach to innovation is related to its culture or structure? Explain.