NATIONAL ECONOMICS UNIVERSITY

NEU BUSINESS SCHOOL

….    ….

QUALITY MANAGEMENT
COURSEWORK

IKEA CASE STUDY IN THE TQM, QUALITY MANAGEMENT

SYSTEM AND QUALITY LEADERSHIP

Student’s name : Doan Manh Huy

Student ID : 11182197
Class : E-BBA 10.3
Lecturer : Ph.D. Vu Hoang Hiep

Hanoi, 2021
 IKEA is a Sweden furniture company that was founded by Ingvar Kamprad and has
evolved into a global giant which operates in 43 countries. IKEA is looking for ways to provide
"democratic design," or the creation of elegant and inexpensive items using cost-effective
materials and technologies. Furniture must be safe and environmentally sustainable, according
to IKEA's vision. The issues of safety, environmental safety, and quality are considered at all
stages of new product development. The following essay will introduce Total Quality
Management(TQM), quality management system, quality leadership, and how IKEA applies it
to make its brand stand out in the market.
The following is a study on how IKEA follows the TQM concept and makes its business
world-class. First, we have to understand the nature and concepts of quality. Quality is
described as the “degree to which a set of inherent characteristics (attributes) of the object
satisfies a set of requirements” when applied to an object (product, service, or process). As a
result, an object's quality is evaluated by comparing a set of specified features to a set of
requirements. If those traits conform to the requirements, high quality is achieved, but if they
do not meet the requirements, a low or poor level of quality is achieved. The second part is the
cost of quality. The cost of quality is a method for determining where and how much of a
company's resources are spent on prevention and product quality maintenance, as opposed to
the costs of internal and external failures. Finally, the concept of Total Quality Management.
Total quality management (TQM) is the continual process of detecting and minimizing or
eliminating production defects, optimizing supply chain management, improving customer
experience, and ensuring that staff is properly trained. Total quality management aims to keep
all parties involved in the production process accountable for the overall quality of the finished
product or service. Here are the 8 principles of total quality management, and how IKEA
applies them and made the business outstanding in the marketplace. In the first place, strategic
and systematic approach: A strategic and systematic approach to attaining an organization's
vision, mission, and goals is an important aspect of quality management. IKEA built a strategic
plan that integrates quality as a core component. IKEA's mission statement is to provide a
diverse range of well-designed, functional home furnishings at a price that is affordable to a
wide range of people. Their vision statement is to create a better daily life for as many people
as possible. In its market positioning statement, IKEA sees itself as a friend who makes
customers' lives better. IKEA does its part, as does the customer, to save money together. All
in service of IKEA's goals of producing low-cost, accessible products for customers and
improving the lives of those who cannot afford pricey goods. Secondly, customer-focused: It
is the customer who determines the ultimate level of quality. The consumer determines if an
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organization's attempts to increase quality are worthwhile, whether it is through employee
training, incorporating quality into the design process, or upgrading systems or software. IKEA
also uses these rules in customer connections with their homes to tailor their marketing
strategies and meet the demands of its customers. According to Laurent Tiersen, IKEA's UK
and Ireland Country Marketing Manager, the brand should be about much more than just
pricing; it should also be able to make customers feel better and improve their lifestyles.
They've done this in part by developing customer-segment-specific solutions based on lifestyle
and location, with storefronts reflecting the lives of the areas they serve. IKEA, for example,
has increased its strategy for adapting compact living areas in cities, which appeals to
millennials, in recent years. Thirdly, scientific approach to decision making and problem-
solving: Data on performance measurements are required to determine how well a company is
performing. Working with C Space, IKEA continually collects and analyzes data in order to
improve decision-making accuracy, achieve consensus, and allow prediction based on past
history. They conducted 36 in-home interviews in Austin, Chengdu, Osaka, Copenhagen,
Mumbai, and Munich; Ran online communities in seven core, globally representative countries
(USA, China, India, Denmark, Germany, Japan, Russia). They also created a strand of research
called ‘Home Pioneers’ – where they found people living in alternative ways, or in very
different kinds of homes. They’ve surveyed over 21,000 people in 22 countries to confirm their
findings and assumptions. All research is used to make strategies for the future and solve
current problems in a scientific way. Fourthly, long-term commitment: It is important to stay
committed to long-term goals grounded in science. The IKEA firm remains committed to the
Paris Agreement and to helping to keep global warming below 1.5 degrees Celsius. Even when
the pandemic has hit and operations have come to a standstill, their strategic movements have
continued. They have a unique role to play in helping people with limited financial resources
access healthy and sustainable living. They also have ability to work with long-term
commitments, and long-term relationships with suppliers, NGOs, and different stakeholders
around the world. During FY20, the IKEA business signed a Business for Natural call to action,
urging governments to take immediate action to reverse nature loss this decade. And fifth,
teamwork: IKEA has always directed everything towards minimalism and efficiency. That’s
why they share open offices, feel free to talk with any co-worker no matter their role or their
title. And they can always sit down for a ‘Fika’ (a slang of ‘kaffi’) together, to reflect and
reconnect. They just spend a few minutes together, talk it over and listen. Come up with ideas
and write them down. Pick each other’s brains, exchange ideas. Make plans and make them
happen. It's the informal approach seen at every IKEA worldwide, but it's simple and effective.
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Sixth, continuous improvement: IKEA is continuously improving not only its strategy and
vision, but also its corporate responsibility to society. As a big company, it cooperates with
many different suppliers so the environmental and social impact is inevitable. But, they are also
striving every day to be part of a proactive and innovative solution that does not compromise
social and environmental values. When IKEA talks about low prices, it is not at the expense of
people and the environment it provides on the market but by being responsible and
economizing resources which keeps production costs low. To show its partnership with the
society and environment, IKEA works with UNICEF and Save the Children to improve the
rights of children and with WWF on forestry, cotton, and climate change projects (e.g.
preventing girls from working on cottonseed farms in Andhra, India). Seventhly, training:
IKEA has its learning system and training programs tailored to certain employment roles. New
employees and interns will get introduction training, that they can learn about how the company
operates, the safety and security rules, customer-friendly principles, and environmental
approach. IKEA also hosts Development Centers, where participants learn about their,
strengths, and shortcomings, as well as receive advice on which areas are best suited for their
growth. And the last, total employee involvement: All employees work together to achieve a
common goal. Only when fear has been removed from the workplace, management has created
the right environment, and empowerment has emerged, can full employee commitment be
achieved. Employees at IKEA are highly involved in the community and report participating
in community outreach events monthly. IKEA employees also get together once a quarter
outside of work. Employees who are involved in the community establish a culture of social
responsibility both inside and outside the business. Leadership establishes a company's values,
which have a significant impact on how a company's culture is formed. IKEA places high
importance on having fun and being passionate about what they do, thus, 75% of their
employees are pleased to work for the company.
Ikea has succeeded in following TQM concept and making the business stand out in the
market. In addition, based on the information given in the case study, it can be seen that the
quality management and quality leadership system is very well applied by IKEA. The company
has a huge number of franchises that operate on their own and cannot have centralized
manufacturing and procurement. As a result, the ideal way to execute TQM in the organization
is to employ the ISO 9000 standard. ISO 9000 is a set of international standards for quality
management systems and quality assurance developed by the International Organization for
Standardization. The ISO 9000 series of standards were created to assist manufacturers in
properly documenting the quality system aspects that must be implemented to maintain an
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efficient quality system. They're being used in more and more organizations and industries.
Best practices, rules, and common terminology for quality management systems are outlined
in ISO 9000. ISO 9000 requirements at IKEA revolve around seven principles including
customer focus, leadership, engagement of people, process approach, continuous improvement,
evidence-based decision making, and relationship management. IKEA has partially met ISO
9000 requirements in its quality management systems, resulting in a fair sales and profit
performance for the company. The company's products have been attested to and are
anticipated to comply with all national and international laws in all markets where they are
marketed. As a result of the tight specifications in place, suppliers are obligated to adhere to
them. IKEA continues to create and implement tight product criteria while also allowing for
compliance monitoring and verification. IKEA has a test lab that is highly useful during the
product development process to assure durable, healthy, and safe quality items. This laboratory
has been certified and accredited by international standards. The company makes significant
efforts to employ materials derived from sustainable sources, and its products are subjected to
rigorous durability tests regularly. Besides, the role of leadership in quality management forms
the backbone of any improvement strategy. Leaders set the direction of the company while also
ensuring that everyone is on the same purpose. As a result, it is up to leaders to create and
manage the internal environment. Employees can get fully engaged in attaining the
organization's goals and objectives in this environment. As the driving force that sets objectives
and assists employees in achieving those objectives, excellent leadership is critical to
improving quality across the organization. Implement specific initiatives and plans to achieve
these objectives. Once objectives have been established, leaders must put them into action to
ensure that all levels of the organization are involved in quality management campaigns.
Quality leadership is required before quality management can be implemented. The connectors
of the system's parts are the quality leaders. They are the ones who express the importance of
each component interacting with the others. When the components are assembled methodically,
they are supported by data and repeatable throughout time. In IKEA, the quality leader
appreciates the need to have stable processes to maximize customer satisfaction and ultimately
to ‘win’ in the marketplace. They understand that people are the drivers of quality and change.
To make that change happen, they believe in the value of individual contribution as a member
of the system and model the behaviors necessary to build a collaborative culture of IKEA. In
there, the quality leader’s primary role is not just to make sure that parts are checked. Within
the leadership structure, the quality leader also works to create a customer-focused culture that
is always improving the mechanisms that provide success.
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 In conclusion, IKEA applies numerous Total Quality Management principles and
quality leadership in their quality management system. They do it efficiently and
synchronously around the world. The company has a focus on the Customer-needs policy
which is a bedrock of TQM, and makes it far in the market. However, IKEA does not currently
use a holistic approach to TQM. It is also not used in other critical areas such as retail layout
ergonomics and customer service.

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