Ikea : Past, Present and Future

USI : Corporate Strategy (stream 1)

Ikea : Past, Present and Future

Lugano, 1st December 2012

Student : Arnaud Pochon Student ID : 08 – 501 – 041 E-mail : Arnaud.pochon@usi.ch Professor : Matteo Prato

IKEA : PAST, PRESENT AND FUTURE

© Inter IKEA Systems B.V. 2012 | 2012 Facts & Figures

1|Page

USI : Corporate Strategy (stream 1)

Ikea : Past, Present and Future

Lugano, 1st December 2012

Table of Contents

1. Corporate Governance

1.1 1.2 1.3 1.4 Ownership Structure Corporate Culture Corporate Knowledge Corporate Social Responsibility

2. Tools and Models

2.1 Key Success Factors 2.2 Porter’s 5(+1) forces 2.3 Value and Meta-Value Chains

3. Corporate Strategy 4. Questions from IMD’s IKEA case

4.1 Incentive to Grow 4.2 Global Sourcing Challenge 4.3 Kamprad’s Stamp on the Company

5. Conclusions 6. Appendix 7. Bibliography

2|Page

USI : Corporate Strategy (stream 1)

Ikea : Past, Present and Future

Lugano, 1st December 2012

1. Corporate Governance

The notion of Corporate Governance (CG) has become a common concept in the 20 th century as it tends to be an “essential ingredient in corporate success and sustainable economic growth”1. CG can be defined as a system of checks, balances and transparency among executives, directors and shareholders in terms of economic performance as well as social responsibility. The main reason for CG is that managers may not necessarily have the same incentives/interests than the actual owners of a corporation. CG is not forced by law but rather optional (guideline); as an example, the “Swiss Code of Best Practice for Corporate Governance”2 proposes to fix a conduct line and formulates recommendations that companies may freely adapt or develop according to their particular organizational principles. As benefits, CG ensures organizations to be “managed in a manner that fits the best interests of all”3 and is concerned with the board structure/composition of a company. Influenced by the...