By:Katelyn DavidsonMichael Khoshaba Noemi Cisneros Johnny Vasquez http://www.youtube.com/watch?v=yv_e1fy3Gsk http://www.youtube.com/watch?v=yv_e1fy3G sk
History• Began in 1943• Ingvar Kamprad at the young age of seventeen, founded IKEA in Sweden.• IKEA is formed from the “founder’s initials (I.K.) and also the letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he grow up.”• IKEA distributes to the Caribbean, Middle East, North America, Asia Pacific, and Europe distributing to forty-one countries.
History Continued…• Goal was to meet consumer’s needs while keeping prices low• When first starting, IKEA only sold: • Picture frames • Pens • Wallets • Watches • Table runners, • Nylon stockings • Jewelry
Who They Are “IKEA is an international home productcompany that designs and sells ready toassemble furniture appliances and home accessories.”
IKEA’s Vision“To create a better everyday life for the many people.”
Employees“We employ people who really care about customers and colleagues, people who areprepared to work hard, and want to do their best. Everyone is encouraged to use theirinitiative, to question and try new ways and we believe strongly in opportunities forprogression and career advancement in the company.”
Employees• Trust, integrity, and honesty are the main values that build IKEA’s foundation• 131,000 employees• Employees are referred to as co-workers to show that everyone is on an equal playing field
Top 10 Reasons People Stay with IKEA• We hire the right • Ego’s parked at people the door• They’re inspired! • The rewards of a• Making mistake’s never-ending job is okay • Learning by the• An up, down & seat of your pants sideway career • A parent-friendly• Sweden today, environment China Tomorrow • The original social network
Customers• “We shall 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.”• To begin with, IKEA’s employee training includes core principles of customer service set out by IKEA which include: – dignity, equity, inclusion, independence, integration, sensitivity, and equality.
Customers Continued..• Provides products that are long-lasting and better for the environment and society while keeping affordable prices• Will benefit the customers and the way they decide to live lives with less stress and worry
Why Stakeholders Love IKEA• They are creating technology that is the most innovative, and energy efficient to save their customers money• Aware of the environment, and takes many steps in preserving the environment
How IKEA Differs• Have centralized planning for all of their products which reduce their overhead cost of developing products for individual markets• Can charge low prices for their products due to highly efficient supply chain • They have limited number of products in comparison, and can work their supply chain around them • They are like Wal-Mart, they cut down cost of products by efficiency
Society• UNICEF Partner • “ Working in over 150 countries, UNICEF aims to help children survive and thrive. UNICEF is the world’s largest provider of vaccinations for developing countries and also supports child health and nutrition works, good water, sanitation, quality basic education and protection of children from violence, exploitation and HIV.”
Society (IKEA and UNICEF)• IKEA has worked for UNICEF for more that 10 yrs• IKEA has been funding UNICEF project that help: • Improve children’s education • Keep children out of work. • Provide a health start of life for children.• Most of IKEA support of UNICEF is going to India and Pakistan. Focus on children having: • Access to education. • A sustainable family income. • Changing attitudes.• IKEA ultimate goal is “tackle the root causes of child labor”
IKEA and UNICEF Cont’d• EXTRA info: • IKEA has donated $200,000,000 + • IKEA has impacted more than 74 million children in India alone• Soft Toys for Education: • Since 2003, for every soft toy bought in any IKEA stores worldwide, IKEA will donate 1 euro to save the children and fund UNICEF to ultimately educate kids and stop child labor. • So far IKEA has donated $35,000,000 through UNICEF.
Other Programs IKEA- In Kind Assistance • Instead of donating money, IKEA also donates materials that are needed by people worldwide. Ex: • 18,000 tables for use in schools and health in African countries. • Quilts for tsunami survivors. • 45,000 baby blankets for survivors in Pakistan earthquake. • Etc……….. Response to mother nature’s emergencies, 2 stages: 1. During the initial phase of emergencies, IKEA donates needed products, such as food, blankets, etc. 2. Invest in recovery efforts.
IKEA’s Products that Benefit Society• Switch to LED • By 2016, all lighting sold from IKEA stores will be LED • How does this benefit the customers: • LED Use 85 % less energy than incandescent bulbs • LED Last 20 times longer incandescent bulbs • LED bulbs are not expensive than incandescent bulbs even if their price tag has a higher price since it has a longer life time• To help people save money on their electric bill, IKEA provided more induction cook top to the market for a lower price than their competitor stores • Induction cooktops are good at saving energy since they are designed to waste as little heat as possible • In similar situations, IKEA also provides fridges, freezers, and many other goods that are energy efficient and are sold at a low price so to help those who can’t afford at a normal price to buy it
IKEA’s Products that Benefit Society Cont’d• IKEA offers products, such as DIMPA, that are made out of recycled materials • IKEAS goal is to mine fewer resources out of the earth and use more recycled material• IKEA provides Faucet that reduces water consumption by 30 % or even more. The befits include: • Lower water bill • Lower waste of fresh water since we only have 3% or less of fresh water available to us on earth and almost 10% of that water goes into household consumption
Other IKEA Activities Helping Society:• Works to protect forestry and use only certified wood on their products• Reducing CO2 emissions to help stop climate change• One of their goals is to have all their buildings getting their power energy from the sun and wind • More than half of the energy IKEA buildings use is renewable • IKEA recycles 90% of their waste to produce renewable energy• Helps promote producing sustainable cotton through less water usage in third world countries• IKEA is the first store to sell 100% certified chocolate bar• AND THE LIST KEEPS GOING ON AND ON
IKEA Competitor’s Dealing with Society• Rubbermaid: member of HIMSS • “HIMSS is a cause-based, not-for-profit organization exclusively focused on providing global leadership for the optimal use of information technology (IT) and management systems for the betterment of healthcare.”• Jarden: • “Jarden Corporation CEO To Run 135 Miles In Desert To Help Wounded Veterans Back On Their Feet.”• Fortune Brands: • Donates money to causes such as The Home Depot Foundation, Lowe’s Charitable Education Fund, Habitat for Humanity, and American Cancer Society. • “We give to support the priorities of our people and the communities in which they work and live”
Other Partnerships with IKEA• Woodland Trust: 2007-2011 • “A foot in the forest” Campaign • Protects native woodland • Creating new woodland in the UK • Have created over 309 acres of woodland in the UK • IKEA continues the partnership for another 2 years aiming to plant 1,000,000 trees in local communities across the UK • IKEA Family members just have to swipe their card & money donated goes to local community groups, schools, youth groups
Other Partnerships with IKEA Cont’d• Building & Wood Workers International (BWI) • 1998 IKEA est. a long term c0-operation & agreement based on IKEA Code of Conduct. • Global Union Federation of democratic & free trade unions, protecting more than 12 million members in 350 trade unions around the world in the building, building materials, wood, forestry and allied industries.
Other Partnerships with IKEA Cont’d• Business for Social Responsibility (BSR) • Non-profit organization which helps companies achieve business success with respecting ethical values, people, communities, & environment. • IKEA has a representative on board
Investors• IKEA is a private company, thus cannot be invested in by investors.• Even though there are not investors that invest in IKEA, IKEA invests in many organizations to help society and the environment.
Question 2How does IKEA differ from it’s competitors?
• Have centralized planning for all of their products which reduce their overhead cost of developing products for individual markets• Can charge low prices for their products due to highly efficient supply chain