IKEA is a furniture company founded by a Swedish billionaire - Ingvar Kamprad, who is a successful leader and a living legend of IKEA. He made a great contribution to the innovation and successes of IKEA as well as keeping it grow strongly: Just in 10 years, sales of IKEA tripled from over $ 4 billion in 1993 to more than $ 12 billion in 2003.
Starting a new career with IKEA by small business in the village Agunnaryd Elmtary - where Kamprad lived, but finally he turned to selling furniture. Since 1952, IKEA's innovation has changed the furniture industry with the initiative "flat-pack method" for IKEA furniture products. 04 years later (1956), "the concept has almost completely codified" (Kamprad wrote). One of the great successes of Ingvar Kamprad is the shaping and maintaining of an IKEA culture closely linked to his native Sweden. This is a culture of solidarity (empathetically agreed by many people). That culture aims at "making the daily life many people better". This culture is strengthened and supported by IKEA through: •
Employing co-workers (IKEA prefers the word “co-workers” to “employees”) who know how to support each other and have good spirit of teamwork; •
Expecting co-workers to find innovative and better ways to do tasks in every aspect; •
Respecting co-workers and their opinions;
Setting goals for the whole company, co-workers and working tirelessly to achieve them; •
Making cost become a part of everything they do, from improving the manufacturing process, shopping wisely, to traveling less expensively; •
Avoiding complex solution - the simplicity is an important part of the IKEA culture; •
Leadership by actions, so IKEA leaders are expected to embark in working when needed and create a better working environment; and •
Believing that a diverse workforce helps strengthen the company as a whole. 2.
Answering the questions
Question 1: Discuss three elements of inputs in the Congruence Model that brought success to IKEA. Congruence model includes components to support a company's operations: input, formal organization, informal organization, work, people, and output (Figure 11.2 - Chapter 11, Theory and concepts of leadership). In this model, inputs are mixed into a process of interaction between work, people, formal organization and informal organization before becoming output. Inputs of the model include environment, resources and history. The environment that impacts the company includes 10 elements (degree of technological change; new products/services necessary for competitiveness; Product/Service Lifecycle; market growth rate; Customers’ constantly changing expectations and requirements; competitive situation; Business and Market Globalization; applicability of the Product or Service; accessibility to information, the company's impact on the environment). The company's resources include 05 elements (Finance, Human; Facilities; Information, Time). History - the establishment and operations of the company consists of people associated with the foundation of the Company and events associated with achievements of the company).
In this article, I would like to discuss the elements of inputs a in the Congruence Model that made IKEA successful as follows: 2.1.1.
IKEA was founded by Ingvar Kamprad - who was not only a successful founder and leader but also a living legend of IKEA. Stories and anecdotes about Kamprad and IKEA are still circulated among the furniture business people as well as and even other product businessmen in Sweden and all over the world. Ingvar Kamprad was born on 26th March 1926 in Elmtaryd Agunnaryd, a poor village in Sweden. Right when very small, Kamprad heard of business and showed a talent for business. At age 5, Kamprad was known as a clever boy selling matchboxes to households in the village. It was the boy Ingvar Kamprad who helped berries pickers and fish men sell their products. At the age of 13-14, Ingvar Kamprad truly...
References: 4.1. Course book: Leadership Theories and Concepts (for MBA, by CMU).
4.2. Lectures by Dr. Dominic Mwenja- Rector of California Miramar University.
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