BSO2003 Operations Management: IKEA's Sustainable Strategies

This management briefing document explores IKEA's sustainability strategies, highlighting the company's initiatives to promote economic, environmental, and social well-being. It discusses IKEA's focus on resource management, waste reduction, and the use of renewable materials. The report emphasizes the importance of sustainability for both the environment and the organization, detailing potential benefits such as cost savings and improved brand image. It also addresses the consequences of not adopting a sustainable approach. Furthermore, the briefing outlines IKEA's commitment to science-based targets, reducing single-use plastics, and expanding affordable solar solutions. The analysis covers the costs associated with replicating sustainable practices, customizing products, and implementing changes in marketing strategies, ultimately forecasting a positive impact on waste management and resource conservation.

STRATEGIES OFIKEA
Strategies of IKEA 0

Strategies of IKEA 1
Table of Contents
Introduction......................................................................................................................................1
Products and services.......................................................................................................................2
A Sustainable initiative of IKEA.....................................................................................................2
Exemplary Practitioners...................................................................................................................2
Sustainable Strategy.........................................................................................................................3
Importance towards environment and organization........................................................................3
Potential benefits of adopting the strategy.......................................................................................3
Effects of not adopting a strategy....................................................................................................4
Sustainable Initiative.......................................................................................................................4
Replicating the existing business product and model cost...........................................................5
Customization of product.............................................................................................................5
Changes in marketing strategy.....................................................................................................5
Marketing tool..............................................................................................................................5
Sustainability of the products.......................................................................................................5
Cost of renewable energy.............................................................................................................6
Microenvironment and macro factors cost...................................................................................6
Cost to the organization...................................................................................................................6
Sustainable Initiative.......................................................................................................................6
Forecast............................................................................................................................................7
References........................................................................................................................................7

Strategies of IKEA 2
Introduction
Ingvar Kamprad established IKEA in 1943. IKEA follows the concept of transfer input into
output in a well-organized manner. This organization holds a multinational group, which sell
ready to assemble home accessories, furniture, and kitchen appliances (IKEA, 2019).
Products and services
This organization is the largest furniture retailer. Design of the products of IKEA made in
Sweden and trust of IKEA operates most of the operations like design, stores management, and
manufacturing of furniture. This organization provides many services like home furnishing
advice, assembly services, transport services, installation services, etc. Following points will
highlight the management briefing documentation for managing director of IKEA and the
initiative of the organization for sustainability (Diaz, 2014).
A Sustainable initiative of IKEA
As a writer to educate a sceptical managing director this presentation will introduce as the
product of IKEA should be linked with the eco- friendly environment. People and planet-positive
Sustainability initiative of IKEA will ensure the economic, environmental, and social well-being
for today and tomorrow. This initiative will ensure that without compromising the ability of
future generation needs of the present should be met. IKEA focuses on managing the resources
of the organization (Bederoff, 2018).
For the sustainability of product of IKEA, the organization realized that good environmental
practices within the organization and among its suppliers would have long-term benefits not only
for the economy of the organization but also in presenting a positive corporate image of the
organization to customers. For economy, friendly organization examines in detail forestry
practices and the way of IKEA specified the labor, working conditions, forestry management
practices, and environment that expected its distributors to follow (Stokley, 2014).
Exemplary Practitioners
This is the age of the customer as for success organization should not go through with the
distribution, manufacturing power, and information mastery. IKEA became a completely forest
positive organization by boosting many waste reduction schemes and recycling. This
organization also engaged co-workers and customers through many eco-friendly initiatives. For

Strategies of IKEA 3
reducing the carbon emissions, promoting the clean water projects, and transportation-related
emissions organization circulated many plans.
Evident brand values are holds by IKEA. All the product merchandise of IKEA highlights its low
prices product. Features of the product of IKEA clearly distinguishing and superior design
aesthetics it from its rivals. IKEA creates a clear and unique experience for its customers by
offering better products rather than its customers. This organization follows the concept of
satisfaction to their customers. Organization refers to a strong brand identity by invest in content
marketing. This organization enhances its business by social media channels and know their
customers (Jonsson, 2010).
Sustainable Strategy
The sustainability strategy of IKEA was launch with progressive objectives to transform the
IKEA business in 2012 and informed to all the value chain and franchise system. Purpose of this
strategy is to activate, inspire, and lead in goal setting and decision-making process, as this will
enhance change in a positive manner. This will give a long-term roadmap for strong plans to
IKEA franchise system and value chain. This organization follows the rule as no one can
achieve its goals alone. As everyone needs to perform, well and work together in a collective
way and execute plans with the culture of entrepreneurship, not waiting for perfection and
always moving ahead. There is a necessary need to working together for the achievement of
continuous improvements. This organization will reduce the climate impact of each of its
products by more than two thirds by the end of the next decade (Ringstrom, 2018).
Importance towards environment and organization
The target of IKEA is to target all stores, groups, and franchises supply chain to remove all
single-use plastic products very fast with inspiring the sustainable & healthy living and enable 1
billion people to enjoy a better day everyday life within limits of the planet. Becoming a climate
positive and transforming into a circular business by removing the more greenhouse gas
emissions. Managing the waste, reducing the waste, recycling the waste, reusing packaging
material are the future goals of IKEA (Isaksson, 2016).

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Potential benefits of adopting the strategy
This will save the organization in terms of resources and money. Educational programs run by
IKEA to make awareness about the contribution and importance of the environment.
Digitalization will help the organization to drive efficiency. This will create a transformation in
terms of growth. This is necessary for the organization to meet the requirements of the
organization. Supply chain process of IKEA is to apply with more sustainability. This
organization will create different functional elements with positive feedback. This initiative will
participate in the social transformation and concept of design conventions. Exceeds traditional
thinking will provide a new paradigm. This will help the organization to achieve produce
methods and desired outcomes with a focus on visions (Caglar, Kesteloo, & Kleiner, 2012).
Potential benefits of adoption are as follow –
This will help the customers to live sustainable lives.
This will make operations of the organization completely sustainable.
This will improve the lives of the people who make up their value chain.
This is the practice and principles as recognizing the dynamic and cyclical nature around us with
sustainability.
Effects of not adopting a strategy
If an organization does not adopt the policy of sustainability than the organization will face the
challenge regarding the satisfaction level of their customers. The organization will not be able to
combined people and planet to grow with achievable goals. There will be a negative impact on
climate as they were not able to achieve a healthy and sustainable living. The organization will
not be able to stand at a good rank in terms of competition. Resources are limited and not using
them according to the strategy will enhance the unnecessary use of the resources (Perry, 2015).
Sustainable Initiative
One of the surveys stated that customers like to choose brands with sustainability and the
organization is working on adopting more sustainable business practices. One of the initiative as
an Author like to adopt the policies regarding renewable and recycled materials. This is the
science-based targets initiative and this is a collaboration between the world resources institute,

Strategies of IKEA 5
carbon disclosure projects, the United Nations global compact, the worldwide fund for nature. As
soon as possible, this initiative will reduce the impact on the environment. This initiative will
release IKEA range for renewable materials and recycled materials. This initiative will release
the opportunity to enable and inspire more than one billion people to live better lives, within the
limits of the planet. This will help the organization to focus more on the operations of IKEA for
a sustainable environment. This initiative will help the organization to commit to the science-
based targets. This initiative will remove the single-use plastic products from the stores of IKEA.
This organization for becoming more sustainable towards eco-friendly will charge for plastic
bags, increasing the use of renewable energy in stores, asking suppliers for green products. This
brand believes as for success growing globally requires innovations and sacrifices from global
teams (Rangan & Toffel, 2017).
Benefits to the organization as they will sell affordable, well-designed, modern-looking furniture
with the carbon-intensive meatballs. This will create a circular principle regarding recycled or
renewable materials. The organization will get more plant-based options and its climate positive.
Home solar solutions at an affordable price will be expanded and prioritize in their major
markets. This organization will believe as in the future for sustainable business growth key is
sustainable environment action.
Replicating the existing business product and model cost
This cost is faced by the organization at ground level with most of their research on the products
of the organization. Reuse of the product of the organization enhances the utilization of waste in
the reusable form.
Customization of product
This introduces the organization in a good manner according to the local needs of the product.
Products of IKEA generate more value compare to others as this organization uses a standard
platform (Abouhenidi, 2017).
Changes in marketing strategy
The strategy forces the organization to make meaningful changes according to the market
requirements that consist of distribution, marketing, and design.

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Marketing tool
This initiative will establish a marketing tool with affordable prices. This will create a good
experience for its customers. Strong brand identity creates a clear identity. Content marketing is
also possessed by the organization.
Sustainability of the products
One of the main objectives of IKEA is to sustain the ability of the product of the organization
with local sourcing of materials. The organization follows the rules and regulations regarding the
meetings of organizational factors.
Cost of renewable energy
This renewable energy has increased in the stores of the organization at large level. This
organization focuses on the segment of the products that are very much conscious about
renewable energy (Ong, 2017).
Microenvironment and macro factors cost
This will show the implementation of the organizational factors with the use of eco-friendly
policies. This will increase the business of the organization in an ethical way.
Cost to the organization
If the organization did not adopt the green business behaviors than the organization will face the
challenge against real and urgent problems of climate change and unnecessary use of resources.
Sensitivity to culture, self-awareness, and responsibility management issues are the key factors
that affect the development and growth of the organization. Investors, communities, suppliers,
employees, and customers all affected indirectly by the nature of resources. The organization
will not be able to make good use of resources. The organization will not be able to achieve the
enthusiasm. This will show the negative impact on the organization, as they are not able to use
recycled and renewable materials. This will affect the profits of the organization directly.
Sustainable Initiative
As a writer will choose the sustainability initiative to go very green as soon as possible. For this,
there are ambitious plans with sustainability growth. For this organization should use the most
number of the pieces made by medium density fiberboard. These can be fabricate as recycled
products. These have been use in the alternative form of construction. This will show the access

Strategies of IKEA 7
to their products and affordability of their products. This will help the organization to avoid the
waste in the making of its products out of materials that have been recycled, but climate positive
as well. For this organization need to work again on the current design conventions as many of
which make use of other material casings, screws, and hinges. This initiative will help the
organization to unveil a line of furniture that is able to assemble 80 percent faster. This will
introduce the world technology of IKEA. This initiative will also reduce the carbon footprint of
the organization for a long time. This initiative will increase the availability of affordable solar
solutions as soon as possible (Hammett, 2018).
Forecast
This initiative will ensure the production of the organization can be use and reused with reducing
the waste. This initiative will show an indirect impact on the sustainability of waste management,
services, and logistics. IKEA manages the waste streams responsibly. This initiative will help the
organization to recycle into biodiesel. This initiative of IKEA shows as waste does not go to
waste in IKEA. This strategy plays a part in conserving the environment in another way and
ensure the use of raw material as sustainable as possible. Operations of IKEA will increase the
positive impact on creating a better life of people. As this initiative is an integral part of the
business and believe doing the right thing with sustainability. This will reduce the overall climate
impact of IKEA.

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References
Abouhenidi, H. (2017). International Journal of Scientific & Engineering Research. IKEA, 1170-
1172.
Bederoff, J. (2018, 06 07). Business Insider. Retrieved from Commitment of IKEA:
https://nordic.businessinsider.com/ikea-wants-to-become-circular-climate-neutral-by-2030--/
Caglar, D., Kesteloo, M., & Kleiner, A. (2012). Growth Strategy. Potential Benefits, 23-32.
Diaz, J. (2014, 06 05). IKEA Services. Retrieved from Introduction of IKEA:
https://www.ikea.com/ms/en_CA/this-is-ikea/about-the-ikea-group/index.html
Hammett, E. (2018). Strategy. Marketing Strategy OF IKEA, 1-12.
IKEA. (2019, 04 20). History of IKEA. Retrieved from IKEA foundation:
https://www.ikeafoundation.org/about-us-ikea-foundation/history/
Isaksson, R. (2016). Environmental Factor. IKEA Environment, 1-4.
Jonsson, A. (2010). Exemplary Practitioners of IKEA. Practitioners, 17-44.
Ong, T. (2017). Panels of IKEA. Renewable Of Energy, 62-68.
Perry. (2015). Operation Management. Cost to IKEA, 1-5.
Rangan, V., & Toffel, M. (2017). Sustainable Initiative. IKEA, 62-68.
Ringstrom, A. (2018, 06 07). Reuters. Retrieved from Renewable & Recycled Materials:
https://in.reuters.com/article/us-ikea-sustainability/ikea-to-use-only-renewable-and-recycled-
materials-by-2030-idINKCN1J31CD
Stokley, S. (2014, 08 19). People & Planet Positive. Retrieved from Sustainability Strategy:
https://www.usgbc.org/education/sessions/ikea-strategy-become-people-and-planet-positive