This slide presentation taken from Leadership text book by Hughes, 7th Edition in the page of 513-515, Chapter 12 about The Situation

1. Minicase: Innovation at IKEA
Presented by:
Irwanti Martha & Randy Wiska

2. Outline
•Discuss the three input components of the
Congruence Model as they apply to success of
IKEA.
Question 1
• Consider Schein's four key organizational
culture factors. What examples can you identify
within the IKEA organization that contributes to the
company's strong corporate culture?
Question 2
• Based on the level of technological complexity and
the degree of environmental uncertainty present at
IKEA, what type of organizational structure would
you expect?
Question 3

3. • I (Ingvar ) Founders first name
• K (Kamprad) Founders last name
• E (Elmtaryd) Farm where he grew up
• A (Agunnaryd) Home village

4. The IKEA Vision
“The IKEA vision is to create a better everyday life for the many
people. We make this possible by offering 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.”

6. Minicase 1:
Discuss the three input components of the
Congruence Model as they apply to success of
IKEA.

7. Minicase 1
Environment
• Outside Organization: Consument, Market, Government,
Society, Competitor, Technology, Environmental uncertainty
• Inside Organization : Company policy, Employee treatment .
Resources
• Tangible resource: Increased sales, Profits, Market share,
Information about customer want & need
• Intangible resource: Customer’s perceptions , Positive
organizational culture, Commitment & dedication

8. Minicase 1
History
• In 1943, IKEA was founded by Ingvar Kamprad
• Based in Sweden
• Bright blue and yellow
• Originally and Now IKEA
• In 1951, the first IKEA furniture catalog was published
• 1955 IKEA begins designing its own furniture
• 1985 The first IKEA store opens in the USA
• 1993 IKEA reaches 114 stores
• 2012 July IKEA reaches 300 stores
• IKEA numbers 120,000 employees in 300 stores in 44 countries

9. Minicase 2: Consider Schein's four key organizational culture factors. What examples
can you identify within the IKEA organization that contributes to the company's strong
corporate culture?
Myths & Stories:
Ingvar Kamprad
Rituals: Hiring
Process & Founder’s
Regular Visit
Language: Naming of
Products
Symbols & Artifacts:
Building &
Decoration

10. Minicase 3: Based on the level of technological complexity and the
degree of environmental uncertainty present at IKEA, what type
of Organizational Sturcture would you expect?
Organizational Sturcture
• Horizontal Complexity
• Vertical Complexity
• Spatial Complexity

11. References
• http://www.ikea.com/ms/en_US/about_ikea/pdf/FF
09_GB.pdf
• http://www.ikea.com/ms/en_US/about_ikea/facts_
and_figures/index.html#
• http://en.wikipedia.org/wiki/IKEA
• www.ikea.com

12. Thank You!