Investigating Ikea

Investigating IKEA

Introduction

In this piece of work I will be looking at the Swedish born business

IKEA. I will be classifying its type of ownership and explaining the

advantages and disadvantages of this. I will be using primary

resources such as surveys- questionnaires and interviews. I will also

be using secondary resources such as- web sites, newspapers,

magazines, associations, textbooks, business data and government &

local authority data.

Introduction to IKEA

IKEA is a well-known household name. They are an extremely popular

business. They sell all kinds of household fittings form; the smallest

t-spoon to huge double beds. IKEA first started in the 1940's in a

small farming village in southern Sweden where it was founded by

Ingvar Kamprad- when he was 17. IKEA originally sold pens, wallets,

picture frames, table runners, watches, jewellery and nylon stockings.

In the 50's and 60's IKEA forged good relations with its suppliers in

Poland, as they started to use a lot more wood in many of their

designs. After 41 years of steady growth Ikea opens its first store in

the USA. Then IKEA reaches a huge milestone, after 50 years of

providing millions of people with their home furnishings IKEA reaches

114 stores worldwide in 25 countries. Ikea is still growing throughout

the world.

E2.

Ownership

Ikea is made up of two other businesses, INGKA Holding B.V; which is

the "parent company" for all of IKEA's group companies. And Swedwood

industrial group; which manufactures IKEA furniture, the sales

companies that run IKEA stores, as well as purchasing and supplying

functions, and IKEA of Sweden, which is responsible for the design and

development of products in the IKEA range. INGKA Holding BV is solely

owned by Stitching INGKA Foundation, which is a foundation registered

in the Netherlands. (See appendix 1).

Inter IKEA Systems B.V., the Netherlands, owns the IKEA concept and

the trademark, there is a franchising agreement...