The Most Successful Strategies Of IKEA Company

IKEA is a Swedish-founded Dutch-based multinational group, that designs and sells ready-to-assemble furniture, kitchen appliances and home accessories. It has been the world's largest furniture retailer since at least 2008. It was founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed by Foreskin 2015 as one of the ten richest people in the world, worth more than $40 billion. IKEA culture that they have use is ‘work hard, be yourself’, it’s mean ability to do job is just starting point but the real quantities is what you really need. It is desire to learn, have to motivate to do better in work, having sense, and other ability that mean to improve or being leader. Different strategies in company can have effect to outcome as whole company and I will conclude which are the best strategies in this case.

Motivation at IKEA

Motivation which Ikea provided to their employers has more than good environment. Ikea guarantee on bonus salary, public transport, provide school loan for employee child, insurance and employee work for more than 5 year Ikea will provide extra 5 days of vacation. Quote of Ikea ‘work hard, be yourself’, Ikea need employee that have ability to do job. Working need to have motivation it can be from desire to learn and desire to be leader in future.


Ikea is one of the biggest furniture brank in the world, the story begins in 1926 boy name Ingvar Kamprad is born in Småland in southern Sweden. He was raise in small farm near small village of Agunnarvd but Ingvar Kamprad have dreams to develop a business when he was young. When he was five years old he start selling matches at village nearby and by seven years old he start selling further afield. He has find out that he can buy in bulk cheaply in Stockholm which he re-sell matches individually and make a lot of profit. Expanding his range of product from only matches adding flower seed, greeting cards, decorations, and stationary. Between 1940 to 1950 Ingvar Kamprad starting to develop Ikea into furniture retailer. With opportunities which in that time furniture starting to expand in designing, advertising, create catalogue to collect every furniture in Ikea and of course the most known for Ikea is their showroom to reach many people. Ikea starting to take shape in 1960-1970, their popular product that has been developed such as POÄNG and BILLY bookcase. This time Ikea having their own unique and Ingvar Kamprad have alias ‘The Teastament of a Furniture Dealer’. After Ikea having their own concept and making a lot of profit Ikea expands dramatically in 1980 such as USA, France, Italy and the UK. This time where Ikea have take form of their modern style. Next decade children Ikea have been added into system, create furniture that answer both parent and children needs. In year 2000 Ikea expands into new countries such as Japan and Russia. This time Ikea have been success in many partnership regarding social and environmental side.

Organizational structure types

Ikea have a unique organization structure. Ikea organize how franchise work with main Ikea organization name inter Ikea group. Ikea have franchise around the countries which they name to create organization to help different area to operate properly, most of Ikea franchises are own and operated by INGKA group. Inter Ikea and INGKA group is similar in history but operate by different owner since 1908’s.

Maslow’s Hierarchy of Needs

Maslow hierarchy of needs is the proper theory that every company should provide to their employee. I think that IKEA have provide the first needs is physiological needs, IKEA work place have many benefit for employee that take care them. IKEA surely that give their employee salary constantly so second of needs is safety needs really get fulfill from that because constant income mean employee can rent apartment. The third needs that is psychological needs is belongingness and love needs, for IKEA employee you don’t need to be scare about being left behind or have no belonging. From IKEA trainee information above you can tell that manager and employee was work in group and they were very supporting each other to get each other motivated. The fourth levels of need are also psychological needs it is esteem need and IKEA also fulfill tis needs because from benefit information you can see that they will have parties and extra holiday provided if you work for them for 5 years so the feeling of accomplish can be fulfill because when you work for them IKEA will provide a special benefit for people that work hard to accomplish something. The last need that hard to accomplish for some company but I surely that IKEA can fulfill the self-actualization needs because IKEA will push you in direction of motivating you not push you in only just higher salary. IKEA was company that support people because from all information that I have written IKEA was company that help people to get fulfill or happy with their jobs and everyone was ready to support each other.

Adams’ equity theory

Adam equity theory this theory says that the amount of input you do for the company you should get the equal amount of output. Input are working, completing the set goals, and anything that’s is internal for the output are money, vacation, and anything that is external that you will get from the company depends on how you work for the company. From my research I saw that IKEA has a very good management on the employee and manager will always set their goals for the employee. I think that if IKEA uses Adam theory the employee might work harder than they used to work because IKEA employee is already working hard and are always motivated but if something from that hard working like vacation and maybe extra holiday. They would be 10 times more motivates. I think that Adam equity theory is the golden theory for IKEA because it would motivate the employee more.

Herzberg two factor theory

Herzberg theory or two factor theory by Fredrick Herzberg. As Ikea already provide an hygiene side and with great environment working with other college will be helping in motivation side. Having high hygiene and low motivation can create dissatisfaction, there are choice of path to choose how management or human resource can prevent dissatisfaction. Most important factor that can clear employee role of work is in bureaucracy theory which is each person have their own role in organization so some person doesn’t need to have many job in one person. Now Ikea can prevent employee from dissatisfaction so organization are able to create satisfaction by giving responsibility to team that working which mean company trust in them so employee appreciate how organization have recognized them.

IKEA SWOT analysis

SWOT is strengths, weaknesses, opportunities, threats, and sources. Ikea strength, was known for its modern furniture concept which provide part of furniture for customer assemble by their own. Customer assemble furniture by themselves mean reducing cost in production and Ikea start using renewable material also reduces cost. Ikea weakness, having hundreds of franchises and around the world mean it can have effected Ikea standard of quality. Producing large quantities of product equal large quantities of raw product, even Ikea using such a raw material retailer can change price that can affected Ikea directly in profit. Opportunities, Ikea using material such as wood chips that compress into wood board, with it ‘green’ business model there will be customer group. Threats, Ikea is model business using low cost product there will be rival business to use the same concept. Ikea need to be head in furniture retailor so they need to be constantly improve.


As motivation at Ikea, Ikea already have strategies that close to Adam’s theory as Ikea quote ‘work hard, be yourself’. Input equal to output is what Adam’s theory is, also Ikea for example employee working for long period 5 year Ikea give 5 days extra of vacations. Ikea have new employee apply for every day, competition inside company of employee rate is high. In order to be promoted, employee need to be working hard in order to prove they have ability to be leader. In conclusion Ikea adopted Adam’s theory is the best choice of having the best employee working in company.

13 January 2020
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