Balanced Scorecard IKEA Essay

About the companyIKEA is a Swedish company registered in the Netherlands that constructs and sells ready-to-assemble furniture, appliances and fellowship accessories. As of January 2008, the company is the demesnes bigst furniture retailer. Founded in Sweden in 1943 by 17-year-old Ingvar Kamprad, who was listed as mavin of the grounds richest people in 2013, the companys name is an acronym that consists of the initials of, Ingvar Kamprad, Elmtaryd (the farm where he grew up), and Agunnaryd (his standtown in Smland, south Sweden).The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design decease is a lot associated with eco-friendly simplicity. In addition, the firm is known for its attention to cost control, operational details, and continuous merchandise intermitment, corporate attributes that allowed IKEA to depress its prices by an average of two to three percent over the decade to 2010 during a peri od of international expansion.IKEA is about much more than than just growths. It is about offering consumption, home furnishing knowledge, newfangled overlaps and solutions people displace relate to. Always at low prices. IKEA home furnishing springinesss people access to afford adequate to(p) solutions that solve their involve and improve everyday life at home. Simply put, IKEA home furnishing makes it possible to turn dreams into reality and compose homes to love musical accompaniment in.A elaboration of heartsThe IKEA culture is hard to describe but aristocratic to embrace. Its a culture of enthusiasm, togetherness and volitionpower, born from our roots in southern Sweden and inspired by the IKEA fo downstairs, Ingvar Kamprad. The IKEA culture humbly unites us in our go to create a collapse everyday life for the more another(prenominal) people. Its not an easy task and maybe thats why we and all other IKEA co-workers be so dedicated and so stubborn. We all sha rgon the same conviction that many, not few, shall be able to create the home they wantand dream of. And when you put your heart into your work, its then you really tramp make a difference. Over 150,000 people argon problematical in the creation of a better everyday life for the many people. Business plans Maintaining a strong IKEAand expansion ideas are great motivators to work hard. But there is no culture is one of the most crucialsubstitute for the feeling of in reality contributing to something bigger. factors behind the continuedsuccess of the IKEA sentimentIngvar KampradIKEA founderThe IKEA valuesValues shadowernot be invented they corporation solely emerge from one place the heart. IKEA values are very much a intersection point of our origin. Hard work, tough challenges, common sense, Swedish roots and limited resources have formed IKEA values. To keep the IKEA pattern successful, we work to keep our values close to our heart. The IKEA values convey the essence of t he entire IKEA culture. Over the long time weve learned that acting according to IKEA values not only brings us together no weigh what age, race or part of the world we live in it athletic supporters us do argument successfully.The IKEA growth figure of speechDeveloping IKEA wares can take place almost anywhere around the world on a factory floor in Asia or on the drawing board in lmhult, Sweden. And everybody involved works together to create a product mould that is simple, easy to live with and affordable. Good design should be available for the many, not the few. Thats why all IKEA designers design every IKEA product startle with a give wayal need and a price. hence they use their creativity and knowledge and use inexpensive raw materials and manufacturing processes to create utilitarian products. Then large volumes are purchased to push prices down even further. roughly IKEA products are likewise designed to be transported in flat packs andassembled at the custom ers home. This in like manner lowers the price by minimizing transportation and storage costs. By doing all this, the IKEA Concept uses design to make true that IKEA products can be bought and enjoyed by as many people as possible. IKEA designers constantly seek new ways to improve peoples lives without emptying their wallets. But how can corking design and function be combined with good theatrical role, all at a low price? It starts with focusing on whats important. Will an expensive finish on the back of a shelf or under a table-top improve the function? Of course not. So IKEA designers do not do it, because a product is of no use to the many people if it is not affordable. Low prices with meaningLow prices are only valuable if they offer good function, quality and design. IKEA product development teams constantly ask themselves does this product pass on to a better everyday life? Does it have a good, sustainable design? Is the function and quality suited for everyday life? And most crucial is the price low enough to make this product accessible to many, not just the few?Touch. Try. Explore. DreamThe IKEA store is our meeting place. It is where the IKEA product range comes to life. Visitors can compare styles and prices and get inspired by realistic room settings. They are welcome to sit, lie down, throw and close drawers and cabinets, and pretend to cook, sleep or watch TV. The IKEA store is designed to meet many people looking for something for their homes. Its also a place where you actually can go from inspiration to involvement by getting inspiration from solutions in the store, searching, finding and choosing the products needed, picking them up, buying them, bringing them home, putting them together and enjoying them the same day. All the IKEA products in the store are supported by price and product information that makes it easy for visitors to serve themselves. Customer involvement contributes to low prices.An invitation for the whole year With hundreds of pages of ideas, inspiration, solutions and products, the IKEA classify shows how the IKEA product range contributes to a bettereveryday life. It is filled with solutions that answer peoples dreams and needs, it is also complemented with digital content that gives users a richer last and provides more in-depth home furnishing knowledge. Still, it shows only part of what is offered in IKEA stores.Improve and develop the IKEA ConceptThe IKEA Concept is a living concept. We develop and improve it together with IKEA retailers and other contributors. Together we work to stay in the forefront of global trends and changes in retailing. We listen to the needs based on real-life workshop floor experience to get better insight into what the many people need in oppositeiate to improve their life at home. All this admirers us to ensure that the IKEA Concept remains successful in an ever-changing world.We constantly monitor how the IKEA Concept is implemented in every marke t to ensure it is creating the maximal impact. Monitoring helps us to understand the different challenges facing IKEA. This could range from market conditions to cultural factors affecting obtain behavior. Through monitoring we can find ways to improve the IKEA Concept and how it meets the many people. IKEA retailers share their experiences, knowledge, figure and ideas. This helps the IKEA Concept to be a living and dynamic concept that continuously develops and expands. The key is working together.Online know-how, Publications, instruct programmesWe offer an online resource for IKEA know-how that includes solutions, news, training programmes, publications and much more. We provide manuals and guidelines for all parts of the business and specific know-how areas. We also publish a magazine for IKEA retailers filled with tips, tools and proven solutions from all over the IKEA world. We offer a range of training programmes for many aspects of the business.Market researchWe conduct regular market research and provide IKEA retailers with reports and tools that help them improve their business. For example, we measure how closely IKEA retailers have positioned the IKEA Brand in each market and how satisfied customers are with their latest store visit. We also conductresearch that helps find ways to improve the IKEA product range, the IKEA catalogue and the IKEA website. And we gather and analyze insight into macro-economic factors and the competitive situation.The IKEA Concept CenterWe believe in learning by doing. We operate the IKEA Concept Center in Delft, the Netherlands, where obtain, learning, testing and supporting all come together. The idea is to give IKEA retailers the chance to learn about the IKEA Concept and its recent updates and benefit from all the competence of specialists in a hands-on environment. For most visitors, the main attraction of the IKEA Concept Center is the IKEA store. Like all IKEA stores in the world it offers inspiring solutio ns, low prices, tasty food and shopping that is fun and enjoyable.The IKEA Concept Center is also home to specialists who, in co-operation with the IKEA retailers, find and identify good ideas and solutions. New solutions are developed, documented and analyzed from a abstract viewpoint. We provide systematic transfer of IKEA know-how. And communicate proven solutions to all IKEA retailers, so that each and every one can benefit from these in their business. Together, we work to keep the IKEA Concept successful. We offer more than 50 different training programmes and workshops to IKEA managers and specialists at the IKEA College. In addition, many training programmes are offered locally or as elearning programs. all year thousands of students are educated on how to use proven systems, methods and solutions to maximize the possibilities of the IKEA Concept.TestingJust as all IKEA products are tested to ensure quality and to find ways to improve, we are always evoke in improving the living IKEA Concept. We test lots of new and innovative ideas at the IKEA Concept Center. These could be ideas suggested by IKEA retailers or ones that we come up with ourselves. When we find solutions that work well we make the part of the IKEA Concept and document and describe them so that all IKEA retailers benefit.2013 was exciting for IKEA retailingIn a tough humor IKEA retailing continued to grow and expand. Retail gross sales ended at EUR 29.2 billion for the full year. The business climate in Europe continued to be challenging for IKEA retailers, while we see improvements in spousal relationship America, Asia Pacific and the Middle East. As many developed economies strive to balance economics and social well being, we see that uncertainties will continue to dictate the business climate for some time. This affects peoples lives and living conditions and therefore we believe that the IKEA Concept is more needed than ever. The IKEA Concept gives everyone the possibility to improve their life at home IKEA products are becoming more accessible. This is about offering a wide range of good home furnishing products at low prices. It is about providing more and better services. And it is about creating a positive shopping experience in IKEA stores and online. Nine new IKEA stores opened, two of which are in new markets Lithuania and Qatar. There are also continuedYou do your part.We do our part.Together we,save money.improvements in sustainability efforts in various aspects of the IKEA Concept. oneness example is that by 2016, all the lighting sold at IKEA stores will be LED. The IKEA product range aims to help the many people live a more sustainable life at home, with solutions to help save energy, water and reduce waste.Most things remain to be doneThe first IKEA business was founded in 1943 and the IKEA Brand celebrated 70 years during 2013. Today more than 150,000 co-workers are working through-out the IKEA world. We saw more than 770 million visits to the IKEA stores and 1.2 billion visits to IKEA websites in the past year. Still we are just at the beginning. IKEA retailing is petite in most markets and does not exist in others. Peoples needs for good home furnishing products at low prices are bigger than ever and the IKEA Concept will continue to contributeto a better life at home for the many people. A July 2013 media report speculated that IKEA is the worlds largest consumer of wood after a finding that the company uses 1% of the Earths wood supply. As of January 2014, IKEA owns and operates 349 stores in 43 countries.The Balanced ScorecardValue propositionIKEAs value proposition is operational morality because all IKEA designers design every IKEA product starting with a functional need and a price. Then they use their creativity and knowledge and use low-cost raw materials and manufacturing processes to create functional products. Then large volumes are purchased to push prices down even further.Mission StatementIKEAs mis sion is to create a better everyday life for the many people, 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. Its about creating homes to love.Critical success factorsFinancial-grow and expand-increase sales-enhance customer value-improve cost structureCustomer-brand positioning-low cost product solutions-real life experience stores-rich content catalogsInternal Business Processes-minimizing storage and transportation costs-quality testing-product development-market research reports education and Growth-culture of hearts e-learning programmes, training programmes and workshops-sharing experience, ideas, innovations, knowledge and know-how -market research reports-IKEA college