TitleABC123 Version X1IKEA Furniture Retailer to the.docx
- 1. Title ABC/123 Version X 1 IKEA: Furniture Retailer to the World MGT/448 Version 6 2 University of Phoenix MaterialIKEA: Furniture Retailer to the World Introduction IKEA is one of the world’s most successful global retailers. In 2007, IKEA had 300 home furnishing superstores stores in 35 countries and was visited by some 583 million shoppers. IKEA’s low-priced, elegantly designed merchandise, displayed in large warehouse stores, generated sales of €21.2 billion in 2008, up from €4.4 billion in 1994. Although the privately held company refuses to publish figures on profitability, its net profit margins were rumored to be about 10 percent, high for a retailer. The founder, Ingvar Kamprad, now in his 80s but still an active adviser to the company, is rumored to be one of the world’s richest men. Company Background IKEA was established by Ingvar Kamprad in Sweden in 1943 when he was just 17 years old. The fledgling company sold fish, Christmas magazines, and seeds from his family farm. It wasn’t his first business; that had been selling matches, which the enterprising Kamprad had purchased wholesale in 100-box lots (with help from his grandmother who financed the enterprise) and then resold individually at a higher markup. The name IKEA was an acronym, I and K being his initials, while E stood
- 2. for Elmtaryd, the name of the family farm, and A stood for Agunnaryd, the name of the village in southern Sweden where the farm was located. Before long Kamprad had added ballpoint pens to his list and was selling his products via mail order. His warehouse was a shed on the family farm. The customer fulfillment system utilized the local milk truck, which picked up goods daily and took them to the train station. In 1948 Kamprad added furniture to his product line, and in 1949 he published his first catalog, distributed then as now for free. In 1953 Kamprad found himself struggling with another problem; the milk truck had changed its route and he could no longer use it to take goods to the train station. Kamprad’s solution was to buy an idle factory in nearby Almhult and convert it into his warehouse. With business now growing rapidly, Kamprad hired a 22-year-old designer, Gillis Lundgren. Lundgren originally helped Kamprad to do photo shoots for the early IKEA catalogs, but over time he started to design more and more furniture for IKEA, eventually designing as many as 400 pieces, including many best sellers. IKEA’s goal as it emerged over time was to provide stylish functional designs with minimalist lines that could be manufactured cost efficiently under contract by suppliers and priced low enough to allow most people to afford them. Kamprad’s theory was that “good furniture could be priced so that the man with that flat wallet would make a place for it in his spending and could afford it.” 1 Kamprad was struck by the fact that furniture in Sweden was expensive at the time, something that he attributed to a fragmented industry dominated by small retailers. Furniture was also often considered a family heirloom, passed down across the generations. He wanted to change this: to make it possible for
- 3. people of modest means to buy their own furniture. Ultimately, this led to the concept of what IKEA calls “democratic design”—a design that, according to Kamprad, “was not just good, but also from the start adapted to machine production and thus cheap to assemble.” 2 Gillis Lundgren was instrumental in the implementation of this concept. Time and time again he would find ways to alter the design of furniture to save on manufacturing costs. Lundgren also stumbled on what was to become a key feature of IKEA furniture: self-assembly. Trying to efficiently pack and ship a long-legged table, he hit upon the idea of taking the legs off and mailing them packed flat under the tabletop. Kamprad quickly noticed that flat-packed furniture reduced transport and warehouse costs and also reduced damage (IKEA had been having a lot of problems with furniture damaged during the shipping process). Also, customers seemed willing to take on the task of assembly in return for lower prices. By 1956, self- assembly was integral to the IKEA concept. In 1957 IKEA started to exhibit and sell its products at home furnishing fairs in Sweden. By cutting retailers out of the equation and using the self-assembly concept, Kamprad could undercut the prices of established retail outlets, much to their chagrin. Established retailers responded by prohibiting IKEA from taking orders at the annual furniture trade show in Stockholm. Established outlets claimed that IKEA was imitating their designs. This was to no avail, however, so the retailers went further, pressuring furniture manufacturers not to sell to IKEA. This had two unintended consequences. First, without access to the designs of many manufacturers, IKEA was forced to design more of its products in-house. Second, Kamprad looked for a manufacturer that would produce the IKEA-designed furniture. Ultimately he found one in Poland. To his delight, Kamprad discovered that furniture manufactured
- 4. in Poland was as much as 50 percent cheaper than furniture made in Sweden, allowing him to cut prices even further. Kamprad also found that doing business with the Poles required the consumption of considerable amounts of vodka to celebrate business transactions, and for the next 40 years his drinking was legendary. Alcohol consumption apart, the relationship that IKEA established with the Poles was to become the archetype for future relationships with suppliers. According to one of the Polish managers, there were three advantages to doing business with IKEA: “One concerned the decision making; it was always one man’s decision, and you could rely upon what had been decided. We were given long- term contracts, and were able to plan in peace and quiet. . . . A third advantage was that IKEA introduced new technology. One revolution, for instance, was a way of treating the surface of wood. They also mastered the ability to recognize cost savings that could trim the price.” 3 By the early 1960s, Polish-made goods were to be found on over half of the pages of the IKEA catalog. By 1958, an expanded facility at the Almhult location became the first IKEA store. The original idea behind the store was to have a location where customers could come and see IKEA furniture set up. It was a supplement to IKEA’s main mail order business, but it very quickly became an important sales point. The store soon started to sell car roof racks so that customers could leave with flat-packed furniture loaded on top. Noticing that a trip to an IKEA store was something of an outing for many shoppers (Almhult was not a major population center, and people often drove in from long distances), Kamprad experimented with adding a restaurant to the Almhult store so that customers could relax and refresh themselves while shopping. The restaurant was a hit and it became an integral feature of all IKEA stores.
- 5. The response of IKEA’s competitors to its success was to argue that IKEA products were of low quality. In 1964, just after 800,000 IKEA catalogs had been mailed to Swedish homes, the widely read Swedish magazine Allt i Hemmet (Everything for the Home) published a comparison of IKEA furniture to that sold in traditional Swedish retailers. The furniture was tested for quality in a Swedish design laboratory. The magazine’s analysis, detailed in a 16-page spread, was that not only was IKEA’s quality as good as if not better than that of other Swedish furniture manufacturers, but also the prices were much lower. For example, the magazine concluded that a chair bought at IKEA for 33 kroner ($4) was better than a virtually identical one bought in a more expensive store for 168 kroner ($21). The magazine also showed how a living room furnished with IKEA products was as much as 65 percent less expensive than one furnished with equivalent products from four other stores. This publicity made IKEA acceptable in middleclass households, and sales began to take off. In 1965, IKEA opened its first store in Stockholm, Sweden’s capital. By now, IKEA was generating the equivalent of €25 million and had already opened a store in neighboring Norway. The Stockholm store, its third, was the largest furniture store in Europe and had an innovative circular design that was modeled on the famous Guggenheim Art Museum in New York. The location of the store was to set the pattern at IKEA for decades. The store was situated on the outskirts of the city, rather than downtown, and there was ample space for parking and good access roads. The new store generated a large amount of traffic, so much so that employees could not keep up with customer orders, and long lines formed at the checkouts and merchandise pickup areas. To try to reduce the lines, IKEA experimented with a self-service pickup
- 6. solution, allowing shoppers to enter the warehouse, load flat- packed furniture onto trolleys, and then take them through the checkout. It was so successful that this soon became the company norm in all stores. International Expansion By 1973 IKEA was the largest furniture retailer in Scandinavia with nine stores. The company enjoyed a market share of 15 percent in Sweden. Kamprad, however, felt that growth opportunities were limited. Starting with a single store in Switzerland, the company expanded rapidly in Western Europe during the next 15 years. IKEA met with considerable success, particularly in West Germany where it had 15 stores by the late 1980s. As in Scandinavia, Western European furniture markets were largely fragmented and served by high-cost retailers located in expensive downtown stores and selling relatively expensive furniture that was not always immediately available for delivery. IKEA’s elegant functional designs with their clean lines, low prices, and immediate availability were a breath of fresh air, as was the self-service store format. The company was met with almost universal success even though, as one former manager put it: “We made every mistake in the book, but money nevertheless poured in. We lived frugally, drinking now and again, yes perhaps too much, but we were on our feet bright and cheery when the doors were open for the first customers, competing in good Ikean spirit for the cheapest solutions.” 4 The man in charge of the European expansion was Jan Aulino, Kamprad’s former assistant, who was just 34 years old when the expansion started. Aulino surrounded himself with a young team. Aulino recalled
- 7. that the expansion was so fast paced that the stores were rarely ready when IKEA moved in. Moreover, it was hard to get capital out of Sweden due to capital controls, so the trick was to make a quick profit and get a positive cash flow going as soon as possible. In the haste to expand, Aulino and his team did not always pay attention to detail, and he reportedly clashed with Kamprad on several occasions and considered himself fired at least four times, although he never was. Eventually the European business was reorganized and tighter controls were introduced. IKEA was slow to expand in the United Kingdom, however, where the locally grown company Habitat had built a business that was similar in many respects to IKEA, offering stylish furniture at a relatively low price. IKEA also entered North America, opening seven stores in Canada between 1976 and 1982. Emboldened by this success, in 1985 the company entered the United States. It proved to be a challenge of an entirely different nature. On the face of it, America looked to be fertile territory for IKEA. As in Western Europe, furniture retailing was a very fragmented business in the United States. At the low end of the market were the general discount retailers, such as Walmart, Costco, and Office Depot, which sold a limited product line of basic furniture, often at a very low price. This furniture was very functional, lacked the design elegance associated with IKEA, and was generally of a fairly low quality. Then there were higher-end retailers, such as Ethan Allen, which offered high-quality, well-designed, and high-priced furniture. They sold this furniture in full-service stores staffed by knowledgeable sales people. High-end retailers would often sell ancillary services as well, such as interior design. Typically these retailers would offer home delivery service, including setup in the home, either for free or for a small additional charge. Since it was expensive to keep large inventories of
- 8. high-end furniture, much of what was on display in stores was not readily available, and the client would often have to wait a few weeks before it was delivered. IKEA opened its first U.S. store in 1985 in Philadelphia. The company had decided to locate on the coasts. Surveys of American consumers suggested that IKEA buyers were more likely to be people who had travelled abroad, who considered themselves risk takers, and who liked fine food and wine. These people were concentrated on the coasts. As one manager put it, “There are more Buicks driven in the middle than on the coasts.” 5 Although IKEA initially garnered favorable reviews and enough sales to persuade it to start opening additional stores, by the early 1990s it was clear that things were not going well in America. The company found that its European-style offerings didn’t always resonate with American consumers. Beds were measured in centimeters, not the king, queen, and twin sizes with which Americans are familiar. American sheets didn’t fit on IKEA beds. Sofas weren’t big enough, wardrobe drawers were not deep enough, glasses were too small, curtains too short, and kitchens didn’t fit U.S. size appliances. In a story often repeated at IKEA, managers noted that customers were buying glass vases and using them to drink out of, rather than the small glasses for sale at IKEA. The glasses were apparently too small for Americans who like to add liberal quantities of ice to their drinks. To make matters worse, IKEA was sourcing many of the goods from overseas and they were priced in Swedish kroner, which was strengthening against the U.S. dollar. This drove up the price of goods in IKEA’s American stores. Also, some of the stores were poorly located, and the stores were not large enough to offer the full IKEA experience familiar to Europeans. Turning around its American operations required IKEA to take some decisive actions. Many products
- 9. had to be redesigned to fit with American needs. Newer and larger store locations were chosen. To bring prices down, goods were sourced from lower-cost locations and priced in dollars. IKEA also started to source some products from factories in the United States to reduce both transport costs and dependency on the value of the dollar. At the same time, IKEA was noticing a change in American culture. Americans were becoming more concerned with design and more open to the idea of disposable furniture. It used to be said that Americans changed their spouses about as often as they changed their dinning room table, about 1.5 times in a lifetime, but something was shifting in American culture. Younger people were more open to risks and more willing to experiment, and there was a thirst for design elegance and equality. Starbucks was tapping into this, as was Apple Computer, and so did IKEA. According to one manager at IKEA, “10 or 15 years ago, travelling in the United States, you couldn’t eat well. You couldn’t get good coffee. Now you can get good bread in the supermarket, and people think that is normal. I like that very much. That is more important to good life than the availability of expensive wines. That is what IKEA is about.” 6 To tap into America’s shifting culture, IKEA reemphasized design, and it started promoting itself with a series of quirky hip advertisements aimed at a younger demographic—young married couples, college students, and 20- to 30-something singles. One IKEA commercial, called “Unboring,” made fun of the reluctance of Americans to part with their furniture. One famous ad featured a discarded lamp, forlorn and forsaken in some rainy American city. A man turns to the camera sympathetically. “Many of you feel bad for this lamp,” he says in a thick Swedish accent. “That is because you are crazy.” Hip people, the commercial implied, bought
- 10. furniture at IKEA. Hip people didn’t hang on to their furniture either; after a while they replaced it with something else from IKEA. The shift in tactics worked. IKEA’s revenues doubled in a four- year period to $1.27 billion in 2001, up from $600 million in 1997. By 2008 the United States was IKEA’s second-largest market after Germany, with 35 stores accounting for 10 percent of total revenues, or around $2.4 billion, and expansion plans called for there to be more than 50 stores in the United States by 2012. Having learned vital lessons about competing in foreign countries outside of continental Western Europe, IKEA continued to expand internationally in the 1990s and 2000s. It entered the United Kingdom in 1987 and by 2008 had 17 stores in the country. IKEA also acquired Britain’s Habitat in the early 1990s and continued to run it under the Habitat brand name. In 1998, IKEA entered China, where it had 4 stores by 2008, followed by Russia in 2000 (11 stores by 2008), and in 2006 Japan, a country where it had failed miserably 30 years earlier (by 2008 IKEA had 4 stores in Japan). In total, by 2008 there were 285 IKEA stores in 36 countries and territories, and the company had plans to continue opening between 20 and 25 stores a year for the foreseeable future. According to one manager, an important limiting factor on the pace of expansion was building the supply network. As with the United States, some local customization has been the order of the day. In China, for example, the store layout reflects the layout of many Chinese apartments, and since many Chinese apartments have balconies, IKEA’s Chinese stores include a balcony section. IKEA also has had to adapt its locations in China, where car ownership is still not widespread. In the West, IKEA stores are generally located in suburban areas and have lots of parking space. In China, stores are
- 11. located near public transportation, and IKEA offers delivery services so that Chinese customers can get their purchases home. IKEA has also adopted a deep price discounting model in China, pricing some items as much as 70 percent below their price in IKEA stores outside of China. To make this work, IKEA has sourced a large percentage of its products sold in China from local suppliers. The IKEA Concept and Business Model IKEA’s target market is the young upwardly mobile global middle class who are looking for low-priced but attractively designed furniture and household items. This group is targeted with somewhat wacky offbeat advertisements that help to drive traffic into the stores. The stores themselves are large warehouses, festooned in the blue and yellow colors of the Swedish flag, that offer 8,000 to 10,000 items from kitchen cabinets to candlesticks. There is plenty of parking outside, and the stores are located with good access to major roads. The interior of the stores is configured almost as a maze that requires customers to pass through each department to get to the checkout. The goal is simple: to get customers to make more impulse purchases as they wander through the IKEA wonderland. Customers who enter the store planning to buy a $40 coffee table can end up spending $500 on everything from storage units with an eye to boosting sales. For example, when IKEA managers noticed that men would get bored while their wives stopped in the home textile department, they added a tool section just outside the textile department, and sales of tools skyrocketed. At the end of the maze, just before the checkout, is the warehouse where customers can pick up their flat-packed furniture. IKEA stores also have restaurants (located in the middle of the store) and child-care facilities (located at the entrance for easy drop-off) so that shoppers stay as long as possible.
- 12. Products are designed to reflect the clean Swedish lines that have become IKEA’s trademark. IKEA has a product strategy council, which is a group of senior managers who establish priorities for IKEA’s product lineup. Once a priority is established, product developers survey the competition and then set a price point that is 30 to 50 percent below that of rivals. As IKEA’s website states, “We design the price tag first, then the product.” Once the price tag is set, designers work with a network of suppliers to drive down the cost of producing the unit. The goal is to identify the appropriate suppliers and least costly materials, a trial-and-error process that can take as long as three years. By 2008, IKEA had 1,380 suppliers in 54 countries. The top sourcing countries were China (21 percent of supplies), Poland (17 percent), Italy (8 percent), Sweden (6 percent), and Germany (6 percent). IKEA devotes considerable attention to finding the right supplier for each item. Consider the company’s best-selling Klippan love seat. Designed in 1980, the Klippan, with its clean lines, bright colors, simple legs, and compact size, has sold some 1.5 million units since its introduction. IKEA originally manufactured the product in Sweden but soon transferred production to lower-cost suppliers in Poland. As demand for the Klippan grew, IKEA then decided it made more sense to work with suppliers in each of the company’s big markets to avoid the costs associated with shipping the product all over the world. Today there are five suppliers of the frames in Europe, plus three in the United States, and two in China. To reduce the cost of the cotton slipcovers, IKEA has concentrated production in four core suppliers in China and Europe. The resulting efficiencies from these global sourcing decisions enabled IKEA to reduce the price of the Klippan by some 40 percent between 1999 and 2005. Although IKEA contracts out manufacturing for most of its
- 13. products, since the early 1990s a certain proportion of goods have been made internally (in 2008 around 90 percent of all products were sourced from independent suppliers, with 10 percent being produced internally). The integration into manufacturing was born out of the collapse of Communist governments in Eastern Europe after the fall of the Berlin Wall in 1989. By 1991 IKEA was sourcing some 25 percent of its goods from Eastern European manufacturers. It had invested considerable energy in building long-term relationships with these suppliers and had often helped them to develop and purchase new technology so that they could make IKEA products at a lower cost. As communism collapsed and new bosses came in to the factories, many did not feel bound by the relationships with IKEA. They effectively tore up contracts, tried to raise prices, and underinvested in new technology. With its supply base at risk, IKEA purchased a Swedish manufacturer, Swedwood. IKEA then used Swedwood as the vehicle to buy and run furniture manufacturers across Eastern Europe, with the largest investments being made in Poland. IKEA invested heavily in its Swedwood plants, equipping them with the most modern technology. Beyond the obvious benefits of giving IKEA a low-cost source of supply, Swedwood has also enabled IKEA to acquire knowledge about manufacturing processes that are useful both in product design and in relationships with other suppliers, giving IKEA the ability to help suppliers adopt new technology and drive down their costs. For illustration, consider IKEA’s relationship with suppliers in Vietnam. IKEA has expanded its supply base there to help support its growing Asian presence. IKEA was attracted to Vietnam by the combination of low-cost labor and inexpensive raw materials. IKEA drives a tough bargain with its suppliers,
- 14. many of whom say they make thinner margins on their sales to IKEA than they do to other foreign buyers. IKEA demands high quality at a low price. But there is an upside; IKEA offers the prospect of forging a long-term, high-volume business relationship. Moreover, IKEA regularly advises its Vietnamese suppliers on how to seek out the best and cheapest raw materials, how to set up and expand factories, what equipment to purchase, and how to boost productivity through technology investments and management process. Organization and Management In many ways IKEA’s organization and management practices reflect the personal philosophy of its founder. A 2004 article in Fortune describes Kamprad, then one of the world’s richest men, as an informal and frugal man who “insists on flying coach, takes the subway to work, drives a 10-year-old Volvo, and avoids suits of any kind. It has long been rumored in Sweden that when his selfdiscipline fails and he drinks an overpriced Coke out of a hotel mini bar, he will go down to a grocery store to buy a replacement.” 7 Kamprad’s thriftiness is attributed to his upbringing in Smaland, a traditionally poor region of Sweden. Kamprad’s frugality is now part of IKEA’s DNA. Managers are forbidden to fly first class and expected to share hotel rooms. Under Kamprad, IKEA became mission driven. He had a cause, and those who worked with him adopted it too. It was to make life better for the masses, to democratize furniture. Kamprad’s management style was informal, nonhierarchical, and team based. Titles and privileges are taboo at IKEA. There are no special perks for senior managers. Pay is not particularly high, and people generally work there because they like the atmosphere. Suits and ties have always been absent. From the head office to the loading docks, the culture is egalitarian. Offices are open plan, furnished with IKEA furniture, and
- 15. private offices are rare. Everyone is called a “co-worker,” and first names are used throughout. IKEA regularly stages anti- bureaucracy weeks during which executives work on the store floor or tend to registers. In a 2005 BusinessWeek article the CEO, Andres Dahlvig, described how he spent time earlier in the year unloading trucks and selling beds and mattresses. 8 Creativity is highly valued, and the company is replete with stories ofindividuals taking the initiative, from Gillis Lundgren’s pioneering of the self-assemble concept to the store manager in the Stockhom store who let customers go into the warehouse to pick up their own furniture. To solidify this culture, IKEA had a preference for hiring younger people who had not worked for other enterprises and then promoting from within. IKEA has historically tended to shy away from hiring the highly educated status-oriented elite because they often adapted poorly to the company. Kamprad seems to have viewed his team as extended family. Back in 1957 he bankrolled a weeklong trip to Spain for all 80 employees and their families as reward for hard work. The early team of employees all lived near each other. They worked together, played together, drank together, and talked about IKEA around the clock. When asked by an academic researcher what was the fundamental key to good leadership, Kamprad replied “love.” Recollecting the early days, he noted, “When we were working as a small family in Aluhult,we were as if in love. Nothing whatsoever to do with eroticism. We just liked each other so damn much.” 9 Another manager noted, “We who wanted to join IKEA did so because the company suits our way of life. To escape thinking about status, grandeur, and smart clothes.” 10 As IKEA grew, the question of taking the company public arose. While there were obvious advantages associated with doing so,
- 16. including access to capital, Kamprad would impose short-term pressures on IKEA that would not be good for the company. The constant demands to produce profits, regardless of the business cycle, would in Kamprad’s view make it more difficult for IKEA to take bold decisions. At the same time, as early as 1970 Kamprad started to worry about what would happen if he died. He decided he did not want his sons to inherit the business. His worry was that they would either sell the company, or they might squabble over control of the company, and thus destroy it. All three of his sons, it should be noted, went to work at IKEA as managers. The solution to this dilemma created one of the most unusual corporate structures in the world. In 1982 Kamprad transferred his interest in IKEA to a Dutchbased charitable foundation, Stichting Ingka Foundation. This is a tax- exempt, nonprofit entity that in turn owns Ingka Holding, a private Dutch firm that is the legal owner of IKEA. A five- person committee, chaired by Kamprad and including his wife, runs the foundation. In addition, the IKEA trademark and concept was transferred to IKEA Systems, another private Dutch company, whose parent company, Inter-IKEA, is based in Luxembourg. The Luxembourg company is in turn owned by an identically named company in the Netherlands Antilles, whose beneficial owners remain hidden from public view, but they are almost certainly the Kamprad family. Inter-IKEA earns its money from a franchise agreement it has with each IKEA store. The largest franchisee is none other than Ingka Holding. IKEA states that franchisees pay 3 percent of sales to Inter-IKEA. Thus, Kamprad has effectively moved ownership of IKEA out of Sweden, although the company’s identity and headquarters remain there, and established a mechanism for transferring funds to himself and his family from the franchising of the IKEA concept. Kamprad himself moved to Switzerland in the 1980s to
- 17. escape Sweden’s high taxes, and he has lived there since. In 1986, Kamprad gave up day-to-day control of IKEA to Andres Moberg, a 36-year-old Swede who had dropped out of college to join IKEA’s mail order department. Despite relinquishing management control, Kamprad continued to exert influence over the company as an adviser to senior management and an ambassador for IKEA, a role he was still pursuing with vigor in 2008, despite being in his 80s. Looking Forward In a half century, IKEA had established an enviable position for itself. It had become one of the most successful retail establishments in the world. It had expanded into numerous foreign markets, learning from its failures and building on its successes. It had bought affordable, welldesigned, functional furniture to the masses, helping them to, in Kamprad’s words, achieve a better everyday life. IKEA’s goal was to continue to grow, opening 20 to 25 stores a year for the foreseeable future. Achieving that growth would mean expansion into non-Western markets, including most notably China where it had recently established a beachhead. Could the company continue to do so? Was its competitive advantage secure? Sources 1 Quoted in R. Heller, “Folk Fortune,” Forbes, September 4, 2000, p. 67. 2 B. Torekull, Leading by Design: The IKEA Story (New York: Harper Collins, 1998), p. 53. 3 Ibid., pp. 61–62., 4 Ibid., p. 109.
- 18. 5 J. Leland, “How the Disposable Sofa Conquered America,” The New York Times Magazine, October 5, 2005, p. 45. 6 Ibid 7 C. Daniels and A. Edstrom, “Create IKEA, Make Billions, Take a Bus,” Fortune, May 3, 2006, p. 44. 8 K. Capell et al., “Ikea,” BusinessWeek, November 14, 2005, pp. 96–106. 9 Torekull, Leading by Design: The IKEA Story, p. 82. 10 Ibid., p. 83. Case study taken from: Hill, C.W.L. (2013). International business: Competing in the global marketplace (9th ed.). New York, NY: McGraw-Hill. Copyright © XXXX by University of Phoenix. All rights reserved. Copyright © 2014 by University of Phoenix. All rights reserved.