Ikea

Introduction
About:
Ikea is a privately-held, international home
products retailer that sells flat pack furniture,
accessories,and bathroom & kitchen item in
their retail stores around the world.
This company is no the worlds largest furniture
retailer.
 Introduction
History:
Ikea was founded in 1943 by 17
year old lngvar kamprad in
sweden & it is owned by a Dutch-
Registered Foundation controlled
by the kamprat family
.
 Vision
To creates a better every day life for the many
people

Mission

To offer a wide range of well designed,

functional home furnishing products at prices so
low that as many people as possible will be able
to afford them.
 Expanding Abroad
In 1963 IKEA expanded in Oslo, Norway.
First store in Stockholm in 1965.
In 974 IKEA entered in Germany, which soon
became its largest market.
IKEA entered in US markets in 1985.
In 2002 IKEA entered in Japanese markets.
In 2008 IKEA expanded to markets of China.
 Objectives
To produce cheap and affordable products for
the public.
Better life for those who cant afford
expensive products.
Ensure the customers finds what they are
looking for in stores.
Low prices.
 Products Names
Upholstered furniture,coffee tables,doorknobs

Beds, wardrobes, hall furniture, Norwegian

place names,
Dinning tables and chairs: Finishing place
names,
Chairs, desks, mens name
Materials, Curtains: Womens names.
Garden furniture: Swedish island.
 Top Selling Countries
Germany 15%
USA 11%
France 10%
Italy 7%
Swedish 8%

Top Purchasing Countries

China 22%
Italy 8%
Australia 18%
Sweden 5%
Germany 4%
 Problems
The Environmental Wake-Up:
Formaldehyde.

The Social Wake-Up: Child

Labor.
 Formaldehyde
Formaldehyde was a chemical compound was used as
binding glue in materials such as plywood and
particleboard and often speed out as gas.
At concentrations above 0.1mg/kg in air, it could
cause watery eyes, headaches, a burning sensation in
the throat, and difficulty breathing.
Some IKEAs product emitted more Formaldehyde
than was allowed by legislation.
Due to this problem the sales of IKEA dropped 20% in
Denmark.
 Child Labor
In 1994 as IKEA was still working to resolve the
formaldehyde problems, a Swedish television
documentary showed children in Pakistan working
at weaving looms.
Among the several Swedish companies mentioned
in the film as importers of carpets from Pakistan
,IKEA was the only high-profile name on the list.
The use of child labor was not a high profile public
issue at the time.
 .

In fact the U.N convention on the Rights of the

child had only been published in December
1989.So media attention like this Tv program had
an important role to play in rising awareness on
a topic not well known and understood-
including at IKEA.. We were caught completely
unaware.
It was not something we had been paying
attention to.
 Waking up to Environmental and Social
issues
Environmental solutions:
When Danish authorities passed regulations to
define limits for FORMALDEHYDE emission
permissible in building products .
This chemical compound was used as a binding
glue in material such as plywood and particle
wood
 SOLUTION:
IKEA decided to work directly with the Glue producing
chemical companies such as ICI and BASF to found
ways to reduce use of FORMALDEHYDE in its
products.
2. PROBLEM
GERMAN newspaper found that IKEAS best selling
bookcase series Billy was deadly poisoned
bookshelves, it was not the glue but lacquer on the
shelves.
SOLUTION:
IKEA stopped both production and sales of Billy Book
cases worldwide and corrected the problem.
 Problem 3

IKEA would not accept any Timber, veneer ,plywood or

layer glue wood from intact natural forests.
SOLUTION
To monitor compliance ,IKEA appointed forest managers to
carry out check of wood suppliers and funded GLOBAL
FOREST WATCH PROGRAM and maintained partnership
with WWF.
4. IKEA start making OGLA chairs by using waste of
yogurt cup.
5. Avoid use of PVC in packaging.
 CHILD LABOUR
ISSUE
In 1994 a documentary was shown by
Swedish TV that IKEA as importer of
carpet from Pakistan and rugs from
India and Nepal ,These countries uses
Child labor
SOLUTION:
IKEA sent legal team to Geneva to seek
input.
IKEA added a clause to supply contract a
BLACK and WHITE clause, that if the
supplier employed children under legal
working age contract will be cancelled.
 Recommended Measures For Child Labor
Ikea finish the business relation with those countries
who take a part of child labor.
Ikea start the campaign for protection of childrnes.
Donate to organizations fighting against child labor.
ikea also help to reduce poverty becous it is directly
concern with child labor.
 Recommended Measures for
Environmental Issues
They must create balance in
deforestation and
reforestation.
Ikea must corporate to stop global
warming.
Thy must not drain chemicals or waste
materials in to water.
It also create recovery department for
recycling.
 COMPATITORS OF IKEA IN SOUTH ASIA
Hola is house decoration market in china and
rival of ikea.
Shanghai moontree furniture company.
Foshan Hardware Furniture .
Yuxin Furniture Company.