Ikea's Organizational Behavior

Topics: IKEA, Ingvar Kamprad, Stichting INGKA Foundation Pages: 26 (8899 words) Published: December 2, 2012
IKEA is known for its strong organizational values, which are based on Swedish norms and in particular the opinions and values of the founder himself. It is not unusual to see IKEA employees following the norms and values even outside the working hours, but how important is OB really for IKEA?


A Swedish 17-year-old man named Ingvar Kampard founded Ikea in 1943. It all began with the Ikea catalogue that was sent from house to house, which is still known today as Ikeas signature. In 1948 the range of IKEA products extended to furniture and by 1958 the first store is opened.

By the end of the seventies, Ikea manages to not only open stores all over Europe, but in Canada and Australia as well.

The large cash flow start coming in once Ikea enters the US in1985. By this time IKEA has 10,000 co-workers and 60 stores. Ingvar Kampard retires from Group Management and becomes an advisor to the parent company INGKA Holding B.V.

In 90s IKEA expands in Eastern Europe as well as China. In 1990 the first environmental policy and social responsibility policy is introduced in IKEA. In 1997 IKEA launches Children`s furniture and becomes a retailer with offers to the entire family. By 1999 IKEA group grows to 50,000 co-workers and has 158 stores in 29 countries.

In the year 2000 IKEA arrives to Moscow, Russia and same year Code of Conduct is introduced, called IKEA WAY. Following years IKEA is actively participates in world donating events and promotion of social responsibility.



In 2011 IKEA Group opened 7 new stores in 7 countries. As of 31.08.2011 it had 287 stores in 26 countries 13

Top 5 purchasing countries:
1. China 22%
2. Poland 18%
3. Italy 8%
4. Sweden 5%
5. Germany 4%

Top 5 Selling Countries:
1. Germany 15%
2. USA 11%
3. France 10%
4. Italy 7%
5. Sweden 6%
* Purchasing, distribution, wholesale, range & other: 14,300 * Retail: 100,000
* Swedwood: 16,000
* Swedspan: 700
* Total co-workers in FY11 131.000

TOTAL SALES: Sales increased by 6.9% compared to 2010. Total sales amounted to EUR 24.7 billion.

SUPPLIERS IN 2011: 1,018 suppliers in 53 countries

PRODUCTS: The IKEA range consists of approximately 9,500 products.

PRINTED CATALOGUES, LANGUAGES & EDITIONS: The IKEA catalogue was printed in more than 208 million copies in 30 languages and 59 editions.

STORE VISITS: In 2011, the IKEA Group stores had 655 million visits.

IKEA .COM: IKEA websites had 870 million visits in 2011

As for Ikeas competitors, there is Wal-Mart, Howden and Ashley Furniture.

Company Employees

According to Emil Svallingsson who is an employee at IKEA for 10 years, about 50% of the employees are proud of their jobs. The other half refers the individuals who do not share the exact same vision about the company, and need to be told how to do things and have a stereotypical “boss”, rather than be all a part of one team.

Culture Center - Together
In the hometown of IKEA, Älmhult, there is a Culture Center called "Together". It is a place for employees all over the world to attend education, meetings and to learn about the company culture. There is a lecture hall, access to product archives and documents, as well as exhibitions and interactive installations. Employees are stating that the center is a great help to keep their foundational values alive and that it makes them more motivated in the everyday work life. "Together" works as a meeting place for people working at IKEA as well as a place for developing employment skills. The main idea is to gather the IKEA culture in to one building. Since there are more and more warehouses build over the world, it is not always easy to keep the same values for everyone, and therefore the center is the beginning to keep the...
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