1. IKEA Calvin Rehbein, Victor Bondarev, and Mina Sumaadii
Dickinson State University

2. IKEA
IKEA is a franchise-based chain of household furnishings' stores, first opened in Sweden. The owner and franchiser of the IKEA system is based in the Netherlands, and there are stores in 34 countries

3. IKEA CATALOGUE
The IKEA Catalogue, containing about 12,000 products, is printed in 160 million copies (2006) worldwide, and distributed free of charge, through mail and stores worldwide.
The IKEA Catalogue appears to meet or exceed the Bible (estimated at 53 to 100 million copies) in number of copies printed annually

4. WHERE IKEA GETS THE NAMES
Upholstered furniture, coffee tables, rattan furniture, bookshelves, media storage, doorknobs: Swedish place names
Beds, wardrobes, hall furniture: Norwegian place names
Dining tables and chairs: Finnish place names
Bookcase ranges: Occupations
Bathroom articles: Scandinavian lakes, rivers and bays
Kitchens: grammatical terms, sometimes also other names
Chairs, desks: men's names
Materials, curtains: women's names
Garden furniture: Swedish islands
Carpets: Danish place names
Lighting: terms from music, chemistry, meteorology, measures, weights, seasons, months, days, boats, sailors' language
Bedlinen, bedcovers, pillows/cushions: flowers, plants, precious stones
Children's items: mammals, birds, adjectives
Curtain accessories: mathematical and geometrical terms
Kitchen utensils (cutlery, crockers, textiles, glass, porcelain, tablecloths, candles, serviettes, decorative articles, vases etc.): foreign words, spices, herbs, fish, mushrooms, fruits or berries, functional descriptions
Boxes, wall decoration, pictures and frames, clocks: colloquial expressions, also Swedish place names

5. HISTORY

7. I K E A Ingvar Kamprad Elmtaryd Agunnaryd
IKEA - I and K as the initials of his name, E stood for his parental home Elmtaryd and finally the A for Agunnaryd I
Ingvar K
Kamprad E
Elmtaryd A
Agunnaryd

8. 1943 Komprad aged 17 opens his first real business
1951 first published catalogue
1958 first real IKEA store in Almhult (Smaland)
1963 first store in Oslo, Norway
1965 first store in Stockholm, Sweden
1969 Copenhagen, Denmark

9. IKEA IN THE WORLD
There are a grand total of 247 IKEA stores in 34 countries/territories.
The IKEA Group itself owns 219 stores in 24 countries (as of October 2006).

10. top 5 sales countries
Germany 19 % USA 11 % United Kingdom 11 % France 9 % Sweden 8 %
top 5 purchase countries
China 18 % Poland 12 % Sweden 9 % Italy 7 % Germany 6 %

11. sales by region Asia + Australia 3 % North America 16 % Europe 81
purchasing by region North America 3% Asia 30 % Europe 67 %

12. HOME FURNISHINGS INDUSTRY
Includes furniture, floor coverings, and household textiles.
Over last five years growth has increased.
Europe is most important geographical market.

14. FINANCIAL RATIOS 2004 Home furnishings Current Ratio 1.8 Quick Ratio
1.09
Inventory to Networking Capital
0.89
Net Profit Margin
2.6%
Return on Assets
9.0%
Inventory Turnover
10.42
Asset Turnover
3.46
Fixed Asset Turnover
26.82
Average Collection Period
37 Days

15. LEADING COMPANIES IKEA Group Bed Bath & Beyond Inc.
Federated Department Stores Inc.
Williams-Sonoma Inc.
Linens’n Things
Pier 1 Imports Inc.
MFI Furniture Group Pic.

17. THE OWNERSHIP STRUCTURE AND ORGANIZATION OF THE IKEA GROUP

18. DEVELOPMENT STRATEGY Developing a strong and vital range
Offer outstanding sales prices
Improve meeting with customers
Continue to reduce purchase prices and improve product quality
Develop a logistic efficiency in the whole pipeline

19. DEVELOPMENT STRATEGY 7. Be one IKEA
6. Attract, develop and inspire IKEA’s people
7. Be one IKEA
8. Become leaner, more simplified and quicker
9. Take responsibility for suppliers, their co-workers and for the environment
10. Keep the culture of IKEA a strong living reality

20. LOW PRICES POLICY IKEA stores Distribution Purchasing Industry group
Developing the product range

21. COMMUNICATION loose organizational structure
began using in the early 1980s
IKEA’s network is available worldwide
maximizing communication efficiency, IKEA minimizes costs

22. CATALOG DISTRIBUTION
Identify target consumer types and geographic areas for distribution of catalogue
Identify types and areas with poor sales potential
Increase sales return on catalogue expenditure
Develop business strategy
strategy resulted in an increased spend of 26% for each catalogue, which equates to an increase in sales only in the UK of £51 million

23. EXPANDING THE FOOD DIVISION
IKEA expands its food division
inverse of the strategy adopted by retail giants such as Tesco and Wal-Mart