Ikea.docx

Organizational Background: IKEA IKEA is a Swedish retail Multi National Company which was founded in the year 1943 by a carpenter, Ingvar Kamprad. First Swedish store of IKEA was opened in Almhult, Smaland in the year 1958 while it took 5 years to open their stores outside Sweden (Norway (1963) & Denmark (1969)). By the end of year 2010, company was able to expand in almost 17 countries including the USA, the UK, Singapore, Australia, Italy etc. Company was awarded Nordic Language Award of 2017 for expanding Scandavian heritage and culture around the globe along with their expansion. The company offers a wide range of products which include: design and sale of ready-to-assemble furniture, modular kitchens, homeware and kitchen appliances. In addition to that, it also has a chain of restaurants providing cross-cultural food items. IKEA currently has its 403 stores in 49 nations with a customer base of around 817 million and a strong team of 208,000 employees working together to design and provide the best furniture experience to its customers. In the year 2017, IKEA generated a total revenue of 36,295 million Euros with an operating income of 3,031 million Euros. Total revenue generated in 2017 was an increase of 1.7% as compared to that of year 2016. Total retail sales were close to 34 billion Euros and overall rental income touched the figures of 1 billion Euros.

Netherlands based INGKA Holding B.V. is the parent company of IKEA while it is owned by The Stitching INGKA foundation. IKEA is an organization devoted to provide durable and excellent quality modern furniture designs to its consumers at lowest possible prices so that majority of the population can afford it. While its vision is to provide better living experience to its consumers by continuously evolving their design and implementing new technological advancements in their products.