2. The “Perfect Picture Frame”
In the beginning there was Ingvar
Our part + Your part = $$$
If you want to know what to do right, just ask
your customers
How we make what we make
The Past, The Present, and the Future
3. My first thought was IKEA®
Why think of a store that’s 2 hours away?
Large selection.
Unique items.
Great values
12. Our Part
We make durable affordable
products that are ready-to-assemble.
To keep down cost we
manufacture our own goods.
We place the pieces in Flat-pack
boxes that are easy to
transport.
Your Part
You assemble to products,
which saves money.
Allows you to find things to suit
your needs without multi-brand
confusion.
You take the boxes from the to
store to your home.
13. “To create a better everyday life for
the many people”
-Ingvar Kamprad
14. More furniture requires more wood.
More wood requires more trees.
…..but does this create a better world?
What’s the solution?
15. 1989 IKEA® names it’s first environmental manager
Today Two-Thirds of our cotton comes from more
sustainable sources
There are 550,000 solar panels on IKEA® buildings
world wide.
That’s 130 football fields
worth of solar panels
17. “To create a better life for the many people”
Partnerships
Connecting Thailand and India to Austria,
Sweden and Switzerland
18. No child labor
No forced or bonded labor
No discrimination
Freedom of association
At least minimum wages and
overtime compensation
19. A safe and healthy work
environment, preventing
pollution to air, ground and
water and work to reduce
energy consumption
20. Research visits
Find a need or
want
Design a
solution
Form + function
+ quality +
sustainability +
affordability =
great products.
21. Products direct from suppliers to
stores
Working along side suppliers
Better relationships
Cost Savings through efficiency
22. IKEA®’s uses technology spans all areas of the store
Unique shopping carts with flexible bags
Intriguing store design with many twists and turns
that keep customers guessing
Areas set up to show you exactly what and how
much you can fit in a space, complete with square
footage numbers
See through model versions of quality testing
machines
Desks and tables with interchangeable parts that let
you design exactly what you need
23. Provide value and make as many lives better as
you can
Learn from one another and always improve
If you want to know what people want, go see
the people
24. If it’s not broke don’t fix it
Find ways to grow sustainably
Keep blazing trails
27. 1) Unknown author (Nov. 2014). This is IKEA: The IKEA Concept. Retrieved from
http://www.ikea.com/ms/en_US/this-is-ikea/the-ikea-concept/index.html
2) Unknown author (Nov. 2014). This is IKEA: Democratic Design. Retrieved from
http://www.ikea.com/ms/en_US/this-is-ikea/democratic-design/index.html
3) Unknown author (Nov. 2014). People & Planet: Putting people first. Retrieved from
http://www.ikea.com/ms/en_US/this-is-ikea/people-and-planet/people-and-communities/
4) Unknown author (Nov. 2014). People & Planet: Energy & Resources. Retrieved from
http://www.ikea.com/ms/en_US/this-is-ikea/people-and-planet/energy-and-resources/
5) Graham Winfrey (Sept. 2014). The Design Secrets That Turned IKEA Into a Furniture Heavyweight
Retrieved from http://www.inc.com/graham-winfrey/the-genius-design-elements-that-made-ikea-
a-massive-success.html
6) Arlene Hirst (Oct. 2014). How Ikea Became America’s Furniture-Selling Powerhouse Retrieved from
http://curbed.com/archives/2014/10/08/how-ikea-became-americas-furnitureselling-powerhouse.
php
7) Unknown author (Nov. 2014). About us: Milestones. Retrieved from
http://www.inter.ikea.com/en/about-us/milestones/
Editor's Notes
Good afternoon, my name is Robert Moore Jr. I am a student at Florida State College at Jacksonville.
Today I am going to talk about IKEA. A great place to visit and an even better place to shop.
Here’s what we’ll cover:
A little bit about my personal thoughts on IKEA.
How the store began
The central concept of IKEA
The reasons that IKEA remains relevant
How the products are made.
And the Past, Present, and Future of IKEA
For Father’s day this year my daughter gave me a picture of the word “Daddy” in a bunch of different languages.
I was really excited about it and the first thing that came to mind was to frame it, but I didn’t want just any frame.
I thought of IKEA.
We have gone there a few times before and remembered all of the awesome frames for low prices.
So, I asked my wife if we could plan a trip to IKEA.
It took a couple months before we could schedule the trip, but once we got there I found the perfect frame.
Now it sits just above my desk.
I think I paid $10 for this frame and it was perfect.
It all started with one man, who had an idea and it now has grown into a world wide phenomenon.
I guess you could say that Ingvar is IKEA.
The “I” stands for Ingvar
The “K” is for Kamprad
Which is the founder’s first and last names.
The “E” is for Elmtaryd
And the “A” is for Agunnaryd
Which are the farm and village where he grew up.
The first business named IKEA was a mail order business selling pencils, postcards, and other merchandise.
The furniture came later.
Taking advantage of the furniture makers in the area, Ingvar started offering furniture to go with the merchandise that he was already selling.
Never one to rest, over time he would make improvements such as Flat Pack boxes and self-assembly furniture.
And he would eventually move from the mail primarily, to a showroom, and then a store front.
During the time when most of us are trying find our footing Ingvar went from a small mail order business to full blown store.
He quickly realized that if customers could see and touch the products it would make a difference.
It would also allow him to interact with the customers and hear their thoughts.
Partnership and collaboration was a part of IKEA from the beginning.
What better way to find out what the customer really liked and disliked?
This allowed him to know what products to market and which designs were being received well.
Later this philosophy also applied to the relationship between IKEA’s manufacturing and the customers assembling of products.
And all that adds up to…. You guessed it….
Savings!!!!
It equals reduced labor costs for IKEA, and lower priced products for the consumer.
Just as you would take pride in a paint by numbers picture.
Putting together your own furniture provides a since of accomplishment.
So, how does IKEA do it?
Each action completed on our side relates to another action on your side.
This brings us right back to Ingvar. He’s quoted as saying that his goal was
“TO CREATE A BETTER EVERYDAY LIFE FOR THE MANY PEOPLE”
You can see this theme reflected in every part of the company.
But nothing goes on without some problems.
Thankfully Ingvar was all about solutions.
As IKEA grew and produced more, they needed more resources.
It kind of reminds me of the Lorax by Dr. Seuss.
But unlike the Lorax, Ingvar once alerted to the concerns got right down to work.
Not only did IKEA make changes where wood was concerned.
They expanded the mission to all aspects of the company.
Speaking of listening, when a California location was not performing well.
They asked several Hispanic employees to help them get to know the community.
They went to their homes and spoke with their neighbors and started offering products more in tune with the area.
Things like bright, boldly colored items and items with unique design aesthetics.
Sometimes when companies grow very big, it’s hard to see the individuals down at ground level.
IKEA hasn’t!
In a continuing effort “To create a better life for the many people”
IKEA has partnered with small entrepreneurs in Thailand and India to make unique products.
These products are sold to people in Austria, Sweden, and Switzerland.
Giving people an opportunity to make their own business ventures just like Ingvar did many years before.
And to ensure that these partners are not being taken advantage of, IKEA embraces the IWAY Standard.
All suppliers are made aware of the provisions and are monitored periodically.
Only in this way can a difference be made.
The “Democratic design” process is design for everyone.
It starts with visiting the homes of many people every year and finding out what they want and need.
Then bringing that information back to the IKEA designers to find solutions for those problems.
In a Nut Shell FORM plus FUNCTION plus QUALITY plus SUSTAINABILITY plus AFFORDABILITY
Equals GREAT PRODUCTS
But once a product is made, what then?
IKEA’s relationships with suppliers allows products to go in many times direct from suppliers to stores.
Working along side these suppliers helps to foster better relationships.
Which provides cost savings for customers.
The entire store is an exercise in technology and innovation.
If you ever thought a studio apartment was not big enough to fit everything you need.
Go to an IKEA store you will see a space that 450 sq. feet and I challenge you to tell me what’s missing.
Then you go around the corner you see this crazy machine opening and closing a kitchen drawer with a counter adding up every close.
I think on my last visit, it was at something like 60 thousand.
Technology locked in a room is one thing, but let a customer interact with technology,
Then you’ve got their attention.
As far as IKEA has come it’s never strayed from it’s humble beginnings.
The little things done right add up to big successes.
It’s important to find out what you are doing right and keep doing it.
While improving and making the world a better place.
And remember
With IKEA and YOU
There is no limit to what we can do.
References used in the creation on this Power Point Presentation
