Mission and Vision Statements of IKEA and its shared values: An Analysis
IKEA is a globally famous brand of smart and affordable home furnishing products. The IKEA product range has three special qualities that are affordability, durability and design. Ikea franchisees operated 458 traditional IKEA stores in 61 markets at the end of fiscal 2021 apart from several test locations. IKEA’s product range demonstrates the brand’s passion for quality and value. While the brand has kept delivering superior value of the customers’ money, it is also smart at marketing itself. However, at the root of all these things lies its strategy that has helped it grow its presence internationally and position itself as a favorite of the idle class consumers and the modern generation.
The IKEA dream has three components – its vision, its business idea and its human resource idea. The most important component of this triangle is the vision. To turn a business idea into a success, you need a vision and then to turn your vision into reality, you need people. This is a discussion of the IKEA vision and how it guides its business and human resource management strategy. However, the shared values at IKEA also support its strategy and have proved an important strength in terms of guiding the business towards continued success.
IKEA has a simple one liner for its mission and vision statement. “To create a better everyday life for the many people”. Further it explains the relationship between its vision and business idea as “Our business idea supports this vision by offering 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”.
IKEA’s vision statement serves the purpose of both the mission and vision statement. However, the mission is very broad and does not specifically talk of things like products, customers or other important factors related to the business and the organization like its culture, competition and financial strength. Whether a vision or a mission statement, it must be specific enough to guide business strategy and to help the managers with decision making and resource allocation. IKEA’s vision is not as specific and clear. A mission statement must explain the purpose behind the existence of a company or an organization and a vision provides guidance over how the business brand can keep moving towards its expected future. IKEA’s mission mainly focuses on the customer satisfaction aspect of its business and projects its customer friendly image.
When explaining the purpose of the business, a mission must state what the business is doing including the products it sells, its customer segment, market size and position etc. What IKEA does is to create better homes by creating and selling good quality home furnishing products at affordable prices. So, its vision statement sounds more like business philosophy rather than a mission. If IKEA were to revise its mission, it must add the elements discussed above to make it more specific and focused to relate it with its business and business strategy. The current vision statement looks more like a slogan. Mission and vision statements are also useful at marketing of the brand and therefore must offer a clear glimpse of the company and its business. On top of all, they are guiding statements that are meant to guide business strategy, decision making and resource allocation at the organization.
Shared Values at IKEA:
Behind the success of any business brand is its organizational culture and the shared values. IKEA’s business and culture also based on values shared by their staff members. Below is a discussion of the shared values that guide behavior inside IKEA:
- Humbleness and willpower: With regards to business, IKEA is a humble brand in every aspect including the treatment of customers and suppliers. Willpower reflects in its will to get things done and to innovate and serve.
- Leadership by example: the managers and leaders at IKEA lead and guide through examples and set standards for their co-workers.
- Daring to be different: Differentiation is a key aspect of IKEA’s business and an important value at IKEA. They question old solutions and if there is a better option available they are more than willing to adopt it.
- Togetherness and enthusiasm: Collaboration is an important value at IKEA and collaboration with enthusiasm helps IKEA solve problems. At IKEA they solve the most complex problems and take the biggest challenges to make dreams possible through collaboration and enthusiasm.
- Cost consciousness: Low costs are not just a part of the business strategy but one of the central vales applied everyday at IKEA. They are great at managing costs and make efficient use of resources to keep costs low and pass the benefits to the customer.
- Constant desire for renewal: Constant innovation is also an important value at IKEA. In order to make great products available to its customers at affordable prices, IKEA keeps innovating.
- Accept and delegate responsibility: Workers at IKEA are motivated and stimulated to go beyond the expectations and set standards. They are allowed to make mistakes and then to learn from them.
Suggested Reading: IKEA Generic and Intensive Strategies.