THE IKEA WAY

IKEA has its roots in Smaland, historically one of Swedens poorest region and so hard work and economizing with resources have always been part of its heritage. IKEA is a home furnishing company with a fully integrated supply chain. The group works in four basic areas: range strategy and product development, production, supply and retail. 1943 IKEA is founded by Ingvar Kamprad. In 1955 IKEA begins designing its own furniture. In 1985 The first IKEA store opens in the USA. At present IKEA has 301 stores in 37 countries, having 1,27,000 co-workers. It is worlds leading home furnishings retailer. It was open to provide consumer with Lowcost home products.

THE VISION AND BUSINESS IDEA

Its VISION is: To create a better everyday life for many people. Its BUSINESS IDEA is: To offer a wide range of well-designed, functional home-furnishing product at prices so low that as many people as possible will be able to afford them. Its MARKETING POSITIONING STATEMENT is: Your partner in better living. We do our part, you do yours. Together we save money The IKEA brand is some total of the emotional and rational values that consumer associate with the IKEA trademark and the reputation of the company. IKEA marketing communication is to build the IKEA brand and inspire people to come to the stores. The IKEA concept builds on a relationship with the consumer.

IKEAS CO-WORKERS
IKEAs co-workers are its most valuable resource as the company believes that when they grow, IKEA grows. IKEA conducts an annual company-wide survey to collect feedback from co-workers. The company wants to learn what motivates them and what they are dissatisfied with, so that IKEA can keep improving as an employer. IKEA continuously do survey which is called as vOICE. IKEA leadership index, which measures co-workers view on their managers.

SPOTTING & ENCOURAGING TALENT

Introduce transparent ways of spotting potential and promoting co-workers in order to increase diversity and expand the pool of upcoming talent by organizing Backpacker Programme and +200 project. Equal compensation & benefit structure for all the co-workers. Flexible Working Hours and Holidays.

THE WORK ENVIRONMENT

All co-workers with in retail and distribution undergo safety training before starting to work at IKEA. This includes training on how to use equipment and machinery, fire and evacuation training, routines to prevent and handle workplace accidents, ergonomics etc. Each IKEA unit also has a risk manager, responsible for local safety routines and drills based on the IKEA Group Risk Manual. Safety work is evaluated annually. The top 800 IKEA managers around the world represent more than 50 different nationalities, and overall ambition is to have a workforce that mirrors the divers IKEA customer base. Access to relevant information is a necessity to enable co-workers to do their job, but IKEA also wants to build strong relations with co-workers and help them manage in their workplace with a sense of value and belonging. In FY10, IKEA received nearly one million applications, both for unsolicited and specific open positions.

LINKING WITH THE SUPPLIERS

As the company is a production-oriented company, it strives to build long term relationships with suppliers who share its values and want to grow and develop together with IKEA. Every three years, IKEA conducts a supplier survey to collect feedback from its suppliers on its relationship. The companys practice is to work side-by-side with its suppliers on the factory floor. So. The company has a better understanding of the production conditions. Designers, product developers and purchasers often work on-site in factories. Many suppliers have also experienced that investments in working conditions and the environment often lead to more orders, better productivity and improved profitability, thereby improving competitiveness. Over the years, due to the focus in IWAY, their work has shifted to be more about what needs to be achieved rather than on the detailing how to do it. A working group has now started planning for IWAY of the future, which is expected to be ready for implementation in FY13. The work will involve a variety of internal competencies and external experts to ensure the best possible scope and content.

CARING FOR THE ENVIRONMENT

Company strives to minimize the negative impact on the environment by applying innovative thinking. Cost consciousness is part of its culture, and it inspires to try to make more from less resource and minimize waste in every form. It also help reduce greenhouse gas emissions and minimize waste and water consumption in society by offering products that help its customers live in a more sustainable life at home. Ikea does not accept illegally felled wood or wood from intact natural forest unless it has been certified as responsibly managed.

SUBMITTED BY:ABHISHEK KUMAR SINGH, M6-01 BHASKAR SINGH, M6-08 PRABHAKAR, M6-16 SUMIT TAYAGI, M6-24