LEADERSHIP AND DECISION MAKING (MGT 1101)
Far Eastern University – Manila
Nicanor Reyes Street, Sampaloc Manila, Metro Manila
1st Semester School Year 2019 -2020
In partial fulfillment of requirement in Leadership and Decision Making (MGT 1101)
Case Study: Chapter 13: Innovation at IKEA
Submitted to:
Prof. Virginia Abueva-Amorcillo, MMBM
Submitted by:
ABDULWAKIL, Asmeralda
ENRIQUEZ, Hope Trinity
Section 56
Date Submitted:
November 14, 2019
LEADERSHIP AND DECISION MAKING (MGT 1101)
Chapter 13 Case Analysis:
Innovation at IKEA
I. INTRODUCTION
The group’s case study is under Chapter 13 entitled, “Innovation at IKEA.” The
focus of the case study is the culture that arose from its founder, Ingvar Kamprad. IKEA
began as a small business that became a successful one due to one event that occurred in
its beginnings. From there, we can observe how factors such as the task, the organization
and the environment can affect the overall situation and how a leader should react to such
will be studied.
II. SYNOPSIS
The innovation at IKEA begun when one of Krampad’s employees suggested to
remove the legs of the table to make the transport easier. With that, a series of other
furniture that can be self-assembled were created and it shaped IKEA’s current brand of
flat-pack and self-assembly line of furniture. Krampad may have retired from the
company, but his standards and principles have taken root in the company. The culture in
valuing collaboration and promoting teamwork while continuing to search for innovative
ways in business remains as IKEA’s most important principle. Giving high regard to the
co-workers made employees working in IKEA happy.
III. STATEMENT OF THE PROBLEM
IKEA may have sound ideal for every employees due to its corporate culture that
gives employess high regard, and its unique brand of furniture for the customers, but it is
unavoidable that problems would still arise, such as:
1. Poorly designed infrastructure. Customers browse for their desired furniture
through a stark, dimly lit warehouses.
2. Since IKEA has warehouses that serves as its outlet, there is sure to be a lack of
human employees to attend to the needs of million customer that goes through the
LEADERSHIP AND DECISION MAKING (MGT 1101)
gigantic space. IKEA remains to be minimal in terms of service to their
customers.
IV. OBJECTIVES OF THE STUDY
The main objective of the study is to solve the problems of IKEA through the use
of applying learned principles under Chapter 13 The Situation, thus the following are
the specific objectives:
1. To explain the how task, organizational, and environmental levels of
situation can affect the whole and its implications to the leader.
2. To offer and suggest feasible solutions and actions to the management as to
how they can keep up the success of the company while solving the problems
that have risen.
V. ALTERNATIVE COURSE OF ACTION
1.
2.
3.
VI. ANALYSIS (ADVANTAGES AND DISADVANTAGES)
ALTERNATIVE COURSE ADVANTAGES DISADVANTAGES
OF ACTION
VII. CONCLUSION
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VIII. RECOMMENDATION
IX. MINICASE STUDY QUESTIONS
1. Which type (or types) of organizational culture do you think are dominant at
IKEA?
LEADERSHIP AND DECISION MAKING (MGT 1101)
The most dominant culture type that IKEA has shown is the Clan type
culture, Hierarchy type culture and Adhocracy type culture. It has Clan
type because it values collaboration and promoting of teamwork.
Hierarchy type because they have stated clear rules and process for their
employees and they have the need for smooth functioning in the company.
Adhocracy type because it encourages the employees to think of their own
innovation which adheres to Adhocracy’s emphasis on task involvement.
2. Consider Schein’s four key organizational culture factors as describe in the
chapter. What examples can you identify within the IKEA organization that
contribute to the company’s strong corporate culture?
An example of would be Krampad’s random visits to IKEA just to check
the company even though he has retired. His dedication to IKEA will
become a story that will pass down to future generations of IKEA
employees. Krampad also has a story that would influence IKEA’s
employees to retain the company’s principles and values such as being
innovative and cost-conscious.
3. Do you think IKEA’s distinctive culture will continue to be a competitive
advantage in the years to come? If so, what do you think are ways it can be
sustained and reinforced?
