Ana Lyn Abad Prof.

Napoleon Ocampo
BSAIS 301 October 02, 2023

STRATEGIC MANAGEMENT PAPER OUTLINE

I.

Company Background
IKEA - Corporate
IKEA was founded in 1943 by Ingvar Kamprad, he started in selling pens and wallets at the age of
17 until he started selling furniture’s and used a small amount of money to sell. The company name
IKEA was made up of the founder's initials as well as those of Elmtaryd, the farm where he was raised,
and the nearby village of Agunnaryd.. IKEA has its global headquarters in Delft, the Netherlands, that
one of the remarkable Swedish company and well-known home furnishing brands in the world. IKEA
started in 1943 by Ingvar Kamprad and become the world’s largest furniture retailer since 2008.

Vision and Values

Inspired by our vision and driven by our values, we’re passionate about life at home.

“To create a better everyday life for the many people.”

IKEA’s vision is to provide local communities to obtain raw materials in where people live in sustainable
home environment and provide difference in the world.
The IKEA Objectives
“To offer 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.”

II. Corporate Social Responsibility

The Environmental Pillar (Planet)
IKEA provide People and planet positivity and contributed to stop the climate change and they are
one of the sustainable companies in the world in where they provide a sustained decrease in overall
carbon footprint and increase rate the use of renewable energy in both manufacturing and retail. IKEA
was one of the first companies to reveal the amount of outdoor air pollution produced along a value
chain. The first ever manual on monitoring pollution throughout value chains has been released by IKEA.
This tool promotes efforts to combat air pollution and climate change and enables businesses to
evaluate their influence on air pollution with the collaboration with the Stockholm Environment
Institute (SEI) and the Climate & Clean Air Coalition (CCAC).

Where exactly does IKEA get its wood from?

According to the world map of IKEA, the suppliers use FSC-certified or recycled wood in products
in which they make sure that all woods in their products are inspect in wood control system and make
sure that there is no illegal harvested of woods and practice tree plantations. Becoming climate positive
by reducing on carbon offsets, IKEA will be a climate-positive firm by FY30 because it is reducing its
greenhouse gas (GHG) emissions. Engaging in this practice, they help to decrease the rate of the
increasing rate world temperature that may be attributed to climate change, bringing it down to 1.5°C.

Regenerating resources

The IKEA Company seeks to develop a rate of resources in 2030 that are renewable or recyclable,
improving biodiversity and protecting the ecosystem. They also try to address any possible negative
impacts on the planet and people.

III. Corporate Governance

Goals and risk management
IKEA provides policies and procedures to meet the company’s short and long-term goals and
carefully examine and inspect the products and services that they provide by providing checklist and
instructions. They create products safe for environment and to the people. They verified and tested
their products carefully to avoid risk and problems. In IKEA, products are safety risk assessment from
product idea, through the design and development process, into the finished product they offer in the
customers. Every product is complying with laws and standard before being sold. They also provide
requirements in the materials. IKEA strictly requires making sure that there will be no holes, openings,
and gaps. They make sure that all the products are safe in any age, including children that don’t
contains any chemical. They also support life and support children’s development. They are not just
providing furniture but also, they provide foods and meals for the customers to provide great customer
service. The desire of the IKEA is to offer lower price of goods with a high quality of products
considering the function, form, and sustainability. It is important to make sure you have strategic
decision-making and plans because it makes the company meet the short and long-term investment
goals. Great management can be result to the success.

IV. Management Lessons Learned

IKEA provides good quality of management and structured plans to make the company succeed. I
learned the history and in how to provide a great plan for short and long-term investments goals. In
making a business, you should consider the environment and the one who affects in your product and
services. You should consider the problems that will solve, and the right choose of investors. You should
ensure the quality of natural resources to become sustainable. I learned the materials that should use in
reducing the carbon footprints which affects the environment, and the overall undesirable
environmental impact. Ingvar Kamprad is really dedicated to his passion. He has a mind and heart in
where he considered the health of the people and planet. As being inspired by Ingvar, we should use
money wisely. You should provide a deep research, standards and carefully examine the products and
service before publicizing it to the market. Provide a product that affordable but has a high quality that
good for all people and the environment.

IV. Bibliography
Developing safe products you can trust. IKEA. (n.d.). Retrieved March 14, 2023, from
https://www.ikea.com/us/en/life-at-home/how-ikea-develops-safe-products-pubbfc00b00
Explore the IKEA sustainability report FY22. IKEA Sustainability Report highlights. (n.d.). Retrieved March
14, 2023, from https://about.ikea.com/en/sustainability/sustainabilityreport-highlights#:~:text=retail
%20and%20production-,Regenerating
%20resources,protecting%20ecosystems%20and%20improving%20biodiversity.
IKEA takes lead in Tackling Air Pollution. About IKEA. (2022, November 10). Retrieved March 14, 2023,
from https://about.ikea.com/en/newsroom/2022/11/10/ikea-takes-lead-intackling-air-pollution
The IKEA vision, values and business idea. IKEA. (n.d.). Retrieved March 14, 2023, from
https://www.ikea.com/gb/en/this-is-ikea/about-us/the-ikea-vision-and-values-pub9aa779d0
Our history. IKEA. (n.d.). Retrieved March 14, 2023, from
https://www.ikea.com/ph/en/this-isikea/about-us/ikea-heritage-pubad29a981
Wood at Ikea. Wood sourcing and forest management statistics. (n.d.). Retrieved March 14,
2023, from https://about.ikea.com/en/sustainability/wood-forestry/wood-we-use Powered by
TCPDF (www.tcpdf.org)