Ikea has a long history of making excellent furniture. Its owner Ingvar Kamprad came from humble beginnings in a small town in Switzerland. Many people in this community have a hard working spirit that he himself obtained overtime. He runs his business based on the same values that he grew up around. He teaches his workers this system and it is the backbone of his company.
His management style is that of a cost saving company. Using these methods has enabled him to stay in business for a very long time. He has managed the global economy by keeping cost down. By doing this method, he maintains his mark share in the business. Many of his competitors sometimes go over budget, putting them in a poor position.
It says in the case study that his
…show more content…
The owner requires that during certain weeks top managers work in store areas. This helps them keep up with their training over-time. This keeps them ahead of the competition because; every employee is fully knowledge able about how the company runs.
Many other companies hire managers that are not informed about the company functions. This causes poor leadership and poor spending in some cases. By managers not understanding the workings of the company they could budget poorly. Leading the company in financial ruin. This is one area where Ikea is leading the pact and will continue under good leadership.
Ikea is also a global leader by not having a class structure at his company. During lunch all the employees eat together, this lets each employee feel that they are important. Upper management does not have special dining rooms at this company. The owner does not want anyone to feel they, are better than anyone else is. This prevents workers from turning against each other.
By doing this, the company becomes a strong unit or a family. A united group of employees makes a strong company. Ikea success comes from a good business structure, which models good money management. Good money management keeps the company ahead of the competitors. In addition, they have a culture that pushes
…show more content…
This company is an example of how Ikea, treats its workers like family. This one thing makes any company an industry leader in their field. Ikea controls the environment by treating all workers equally.
The system that the founder uses has been in place for many years. Many small companies use this system all the time; he just perfected it on a larger scale. Lefcourt (2016) said entreprenship is not a just work it is a hobby. Therefore, the founder of Ikea felt that creating this company was a hobby. Because he put so much time and detail into the running of this company.
It seems like the owner wanted to create a company that customers would love. He wanted a company built on trust and every employee feeling like they were part of a family. This model has gotten his company to the top of the industry. If they keep this going, the company could be in business for a very long time. His company focuses on people both employees and customers over profits. If you please the first two the profits will follow