IKEA: Catalyst for Change In 1943, Ingvar Kamprad founded IKEA with an emphasis on cost leadership. IKEA designs and sells furniture in

IKEA: Catalyst for Change

In 1943, Ingvar Kamprad founded IKEA with an emphasis on cost leadership. IKEA designs and sells furniture in “flat packs” that allow one truck to deliver the same amount as six trucks hauling fully assembled furniture. However, a couple of wake-up calls changed IKEA’s focus from low costs to “Low prices but not at any price.”

In the early 1980s, formaldehyde emissions were found to cause health issues such as watery eyes, headaches, and a burning sensation in the throat. This led regulatory bodies in Denmark and Germany began to regulate these emissions. Higher than acceptable concentrations of formaldehyde were found in many IKEAs products, which used it as binding glue in plywood and particleboard. When this information was publicized, IKEA sales dropped 20 percent in Denmark. The company reacted by setting strict guidelines, but this was not enough. In the early 1990s, a best-selling IKEA book case was again found to have higher than acceptable levels of formaldehyde. Once again, sales dropped.

Because of the large financial impact and IKEA’s desire to be socially responsible, IKEA CEO Anders Dalhvig knew changes had to be made. He began by asking a series of questions: “Is environmental and social work good for business? What right do we have to put demands on our suppliers? How fast should a company like IKEA move on sustainability?” Struggling with these questions led to IKEA becoming a company that is well known for its commitment to the environment.

To become more green, IKEA rallied company support around five primary issues: forestry, adapting the product range, working with suppliers, transport and distribution, and ensuring environmentally conscious stores. In regard to forestry, IKEA gets its timber from responsibly managed forests. IKEA is also working with the World Wildlife Fund to help the countries where they get their timber to improve ecological sustainability.

IKEA also employs inspectors who ensure that make sure that suppliers adhere to its code of conduct (called IWAY).118[1] Their aim is to make products that have a minimal impact on the environment in a socially responsible way. Further, the famed “flat packs” allow IKEA to ship more in one truck and reduce its emissions. Like IKEA’s other social responsibility initiatives, focus on the environment is an ongoing process and IKEA hopes to continue to reduce its environmental footprint.

Case Study Questions: Answer the following questions

1. Of incremental, strategic, or transformational, which scope of change best describes IKEA’s response to concerns over product safety and sustainability?

2. You have been assigned by IKEA’s board of directors to appoint a new manager who will oversee IKEA’s change to a green organization. Would you prefer to hire someone from within the organization or from outside of the organization?

3. What are the primary internal and external forces that are fueling IKEA’s need to change?

Expert Answer

 1.Transformational change is the best out of it. This is mainly because they need to transform their overall approach towards business especially regarding sustainability practices. The company has got a bad reputation because of the presence of formaldehyde. Thus they have to get rid of such health hazard materials from their processing , for that they need to find the alternative solution, better alignment with suppliers with quality raw materials and semi fnished goods. Thus a transformational change is required starting from the procurement to the delivery of final product to the customers.

2.Will prefer someone from outside the organisation. This is mainly due to the following reason

  • Can hire an experienced consultant from outside who has fresh approach to green organisational change
  • There wont be any internal pressure which might create a narrow minded working style
  • Less influencial to the current setups, so there will be free mind working style and implementation capability for the person.
  • Other industrial and market knowldge can be replicated in the similar case

3. Primary internal factors are concerns about employees on their health issues because of formaldehyde kind of hazardous materials, then quality related issues from suppliers will cause loss to the company. The external factors are sustainability issues because of negative impact to the environment, loss of trust to the brand because of the issues in their processing material, competitors might take advantage of the company current situation, customer dissastisfaction, government regulations and policies.

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

HOW OUR ONLINE ESSAY WRITING SERVICE WORKS

Let us write that nagging essay.

STEP 1

Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.

STEP 2

Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.

STEP 3

Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.

STEP 4

Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?