Ikea - a Sustainable Business

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Sustainability Strategy
Presented by Sinead Peters http://www.youtube.com/watch?v=AqLQmaIT6-o

History
IKEA was founded in 1943 by Ingvar Kamprad in Sweden. The name IKEA is formed from the founder's initials (I.K.) plus the first letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grew up.

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History
First stores opened Sweden in 1958, Northern Ireland in 2007 Republic of Ireland 2009 IKEA specialises in designing and selling readyto-assemble furniture and are currently the world’s largest retailer with a range of 9.500 products. 3

Sustainability – Approach
Strength

IKEA began to push for sustainability in the early 90s. IWAY – IKEA code of conduct Strong approach and awareness about sustainable business practices. Up to date Sustainability report, recently published from 2011, includes goals until 2015 ‘Never Ending List’ to become more sustainable

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Sustainability – Approach
Strength cont.

Functional products at low prices. Cost leader in the furniture industry. Combined low cost with good quality helps to attract and retain its customers. Maintain long term partnership with its suppliers. Majority of IKEAs furniture is flat-pack, ready to be assembled by the customer. Strong focus on co-worker retention. IKEA Value their employees. 5

Sustainability – Approach
Weakness

There may be cultural differences in some diversified markets for example US, China and Japan. Size and scale of its business. IKEA’s global activities may make it difficult to control standards. Demand for low-cost products. Costs need to be balanced against quality. 6

Sustainability – Approach
Opportunity

Growing demand for greener products. Due to social trends, IKEA receive tips and ideas on reducing their impact on the environment. Market forces make better use of technology and materials. This reduces costs and benefits the customer and the environment. Greener products also attracts the upper class. Opportunity to focus...
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