COLLAPSE

Based on the weekly reading assignments, one of the companies that continue to be discussed and grabs my attention is IKEA. The purpose (mission) statement of IKEA is "to offer 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." The company makes good on that promise by developing keen insights into the ways customers live, translating those insights into products, designing attractive furniture that ships and sells in flat boxes, and using a highly efficient, scalable manufacturing and supply chain (Blount & Leinwand, 2019). Speaking from experience, I have shopped at IKEA and I was surprised by how the furniture seemed to be quite affordable compared to their competitors.

The company "lives out" its mission because I was able to purchase a bed set for my daughter that she still uses to this day. IKEA's purpose has long been evident: Founder Ingvar Kamprad got into the home-furnishings business expressly to serve people of limited means whose only way to acquire furniture was to make or inherit it (Blount & Leinwand, 2019). To be honest, I'm not sure how big furniture corporations and competitors are going to be able to compete with IKEA for much longer. The IKEA prices are unmatchable and every day they are contributing to a positive social change but allowing low- and middle-income families the opportunity to afford furniture. The IKEA business strategy was common sense and simplistic in its approach and has brought success to its stockholders and stakeholders. Businesses are born and survive past start-up because they uniquely meet some set of customer needs (Blount & Leinwand, 2019).

Reference:

Blount, S., & Leinwand, P. (2019). Why are we here? Harvard Business Review, 97(6), 132-139.

Respond to your colleagues' posts in one or more of the following ways:

• Ask a question about the organization your colleague identified as having a strong purpose-driven mission.
• Relate one or more examples of how your selected organization "lives out" its mission to the examples your colleague provided.
• Share an additional or alternate perspective on your colleague's interpretation of their selected organization's strategy.