IKEA's Innovative Human Resource Management Practices and Work Culture![]() ![]() ![]() ![]() |
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Calculating the true value of IKEA was made more difficult by its complicated ownership structure consisting of several holding companies and subsidiaries (Refer Exhibit I for IKEA's ownership structure). IKEA expanded using the franchisee model. BackgroundKamprad was a born businessman. As a young boy, he started a business selling matches to neighbors on his bicycle. He bought the matches cheaply in bulk and sold them at low prices, making a tidy profit. He reinvested his profit in the business and soon diversified into selling a variety of articles including Christmas decorations, stationery items, fish, and seeds.
In 1947, furniture was introduced for the first time in
IKEA's product line in the form of armchairs. Craftsmen from around Kamprad's
village made the furniture using wood from a nearby forest. 4] In the background note, 'IKEA' refers to the original Swedish company. However, in the rest of the case study, it refers to IKEANorth America. |
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