1. IKEA's People and Planet Positive sustainability plan, launched in 2012, aims to contribute to a better life for people and a better future for the planet. The plan outlines several sustainable goals for the company, including reducing its carbon footprint, using more sustainable materials in its products, and promoting a circular economy.

In terms of effectiveness, IKEA's sustainability plan has shown progress in some areas. For example, the company has made significant investments in renewable energy and has made progress in reducing its carbon footprint. IKEA had made efforts to use more sustainable materials in its products and has launched several initiatives to promote circular economy principles.

However, some experts argue that the plan's target may not be ambitious enough to truly transform the company's business. For example, while IKEA has made progress in reducing its carbon footprint, it still has a long way to go to reach its goal of being climate positive by 2030.

Additionally, the company's sustainability plan does not fully address issues such as labor rights and worker well-being, which are critical to achieving sustainable development.

IKEA's People and Planet Positive sustainability plan is a step in the right direction, but it may not be enough to fully transform the company's business. The plan's targets may be appropriate for the company's current level of sustainability, but more ambitious targets may be needed to drive real change and ensure that IKEA is truly contributing to a better future for both the people and the planet.

Question 1. There are three different opinions on IKEA's People & Planet Positive program as 'not impressive', 'moderate', and 'transformation.' You need to think about possible reasons for each opinion and state why you think it is transformational or not.

2. As the Chief Sustainability Officer, Steve Howard would likely advise the Chief Marketing Officer (CMO) to consider sustainability-driven options that are more difficult for competitors to imitate. Sustainability can provide a competitive advantage that is harder for competitors to replicate, as it often requires significant investments in new technologies, processes, and practices. For example, IKEA's investment in renewable energy, such as wind and solar power, is a form of sustainability that is harder for competitors to imitate. Similarly, the company's commitment to using sustainable materials in its products and promoting a circular economy can also provide a sustainable advantage that is difficult for competitors to cope. Steve Howard may suggest that the CMO focus on sustainable initiatives that align with IKEA's values and brand, such as reducing waste, promoting sustainable practices, and improving the lives of people and communities. These initiatives can help IKEA build a strong reputation as a sustainable company and can be difficult for competitors to imitate, as they are often deeply embedded in the company's culture and identity.

Question 2. There are three different options :

1. Don't worry about competing on sustainability because IKEA has other distinctions.

2. Encourage replication

3. Avoid replication because IKEA wants sustainability to become a distinctive brand attribute.

You need to think about the reasons why you support one over the others in relation to IKEA's core competences.

3. IKEA's sustainability strategy aligns well with its business model in several ways. First, IKEA has a long-standing commitment to affordability and accessibility, which is reflected in its sustainability goals. For example, the company aims to make its products more sustainable without increasing their cost, making sustainable products accessible to a wider range of customers.

Second, IKEA's focus on sustainability and the circular economy is in line with its goal of creating a more sustainable and efficient supply chain. By reducing waste and using sustainable materials, IKEA is able to minimize its environmental impact while also improving its operational efficiency. Third, IKEA's commitment to sustainability and social responsibility aligns well with its brand and values, helping the company build a strong reputation and a loyal customer base.

There may be some conflicts between IKEA's sustainability strategy and its business model, particularly in the areas of production and sourcing. For example, the company may face challenges in sourcing sustainable materials and may need to make significant investments in new technologies and processes to reduce its environmental impact. IKEA may face pressure to maintain low prices, which could limit its ability to invest in sustainable initiatives.

Question 3. IKEA achieves its business strategy as cost leader through their core competences in designing and retailing. IKEA is also different from Walmart in that Walmart sells label products and IKEA sells their own products although both pursue cost leadership as their business strategy. Your work should consider the above and make connection between IKEA's sustainability plan and their business strategy/core competences to answer the question whether sustainability plan helps or hurts IKEA achieving its business strategy.

4. Option 1: Owning More Forests

Pros: Directly managing timberland, improved ability to trace wood from the forest to the end consumer, and increased control and influence over practices.

Cons: Expensive to lease or purchase land, difficult to manage large-scale forests, and no guarantee of sustainability standards even with direct control.

Option 2: Driving Higher Procurement Targets and Standards

Pros: Increased traceability of wood sources, increased commitment to sustainability, and increased control of wood supply chain.

Cons: Expense of meeting higher procurement targets, difficulty of ensuring sustainability standards across the entire supply chain, and difficulty of ensuring FSC certification across entire supply chain.

Option 3: Using More Particleboard

Pros: Increased efficiency of wood use, increased ability to use in places where solid wood cannot be used, and lower cost than using solid wood.

Cons: Difficulty in ensuring sustainability standards, difficulty in ensuring FSC certification, and lower quality than using solid wood.

Option 4: Using More Recycled Wood

Pros: Cheaper than virgin particleboard, increased sustainability, increased traceability of wood sources.

Cons: Difficulty in ensuring sustainability standards, difficulty in ensuring FSC certification, expense of adapting board manufacturing plants to accept recycled wood.

In my opinion, the best option for IKEA group to pursue to address IKEA's Wood Supply Chain sustainability is Option 2: Driving Higher Procurement Targets and Standards. This option allows IKEA to increase their commitment to sustainability, traceability, and control of their wood supply chain. Additionally, this option is less expensive than the other three options and is more likely to ensure that sustainability standards are met across the entire supply chain.

Question 4. Each option has pros and cons. You need to think thoroughly pros and cons of each option and make sure to recommend one option based on its alignment with IKEA's business strategy.