case study ikea - leadership of ceo ingvar kamprad

BU057-A1 Margaux Ronfaut Leadership and corporate governance

INGVAR KAMPRAD March 1926-/



The MAN’s characteristics

Backgrounds

• German roots (his paternal

grandfather)

• He was studying Commerce in

Goteborg, Sweden

• At the age of 27, his mother died

because of cancer

Skills

• Great communicator and thus

spokesman

• Involved and focused in

business

• Determinated

• Generous and paradoxically

thrifty (money saver and non

too much spender)

• Minds’ master

Hobbies

• Business deals (1st were boxes of

matches and pens from

Switzerland), he is born made as

businessman

• Obsessed by cost-effective

distribution

• Advertisement

• Earning money and saving it


The FIRM’s characteristics – His impact

Why a leader?

• number 1 (Ikea started in 1943).• settled his values to his employees. “Noble art of Hugging management” I.K• managing scandals• the success of his concept & products.• footprint in the whole world.

Why IKEA?

The company's name is an acronym that consists of the initials of

Ingvar

Kamprad,

Elmtaryd (the farm where he grew up),

and

Agunnaryd (his hometown in Smaland,

South Sweden)

Legacy

1. The product range - our identity.

2. The IKEA spirit. A strong and living reality.

3. Profit gives us resources.

4. Reaching good results with small means.

5. Simplicity is a virtue.

6. Doing it a different way.

7. Concentration - important to our success.

8. Taking responsibility - a privilege.

9. Most things still remain to be done. A glorious future!

1976


His followers

2013:

7 billion on Earth220 million distributed catalogue

= 1 person/ 31 = 3%


His followers

• 154.000 Employees• Followers through websites, blog and obviously sales!• http://www.ikeafans.com/• Customers

http://www.ikeafans.com/

http://www.ikeafans.com/


Impact on the society

Exported Values across the world: common sense, cost consciousness, diversity, the right to be wrong, enthusiasm, honesty, humility, open-mind, respect the environment, simplicity, solidarity, willingness.

Home Sweet Home:

• Did you know that 1/10 Europeans is conceived in an IKEA bed?

• The IKEA catalogue is only slightly less popular than Harry Potter books. It is the third most printed book in the world after the Bible and the Red Book of China.

• IKEA is the third largest consumer of wood in the world, ahead of Walmart and behind Home Depot and Lowe's.

• 1person/100 in the world ever had or still has either a LACK table or a BILLY shelf in house.

Visionary mind:

flat packages• make the package easier to handle

and bring to customers,(lower risk of deterioration)

• Reduce transportation costs between manufacturers and shops

• reduce storage costs.• Earn more benefits for the company

Self-service stores

outside of cities’ centres


Turning to an association & Nowadays

Other scandals:

Involvement in to Fascism 1994

In a 1994 letter to IKEA employees, Kamprad called his affiliation with the organization the "greatest mistake of his life."

Intoxicated food In February 2013 in Europe and China

Spying employees and customers In 2011 in Europe

In 1973, he set up his first store outside Sweden, in Switzerland, near Zurich.

INGKA foundation stayed four years in Denmark, and then migrated to Liechtenstein to enjoy the famous tax benefits.

I.K. ensured he can convey his company to his son without paying inheritance taxes.+ reduced tax on capital transfers

Communication did not affect the longevity and safety projects of I.K. for his company / his treasure.In 1974 IKEA Finance SA. > in a fiscally attractive country: Luxembourg.

I.K. has shown great discretion because these decisions are very selfish and do not really go in line with his values, strictly transmitted to his loyal employees (e.g. simplicity).


Conclusion

“only those who are asleep make no mistakes”From a transformational leader, Ingvar Kamprad

Thanks !