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Member's Name: 1. Qirana Az-Zahra 20180420276 2. Sekar Asna Ifina 20180420277 3. Maulidya Siti 20180420302 4. Faries Anantama 20180420306

IKEA is a Swedish multinational group that manufactures and sells ready-to-assemble furniture, kitchen appliances and home accessories. It was founded in 1943 by Ingvar Kamprad in Sweden and has expanded globally. IKEA is known for its modern, functional designs at affordable prices. The company aims to offer well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. IKEA has faced criticism for some of its tax avoidance practices through the use of complex corporate structures across multiple countries.

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0% found this document useful (0 votes)
91 views16 pages

Member's Name: 1. Qirana Az-Zahra 20180420276 2. Sekar Asna Ifina 20180420277 3. Maulidya Siti 20180420302 4. Faries Anantama 20180420306

IKEA is a Swedish multinational group that manufactures and sells ready-to-assemble furniture, kitchen appliances and home accessories. It was founded in 1943 by Ingvar Kamprad in Sweden and has expanded globally. IKEA is known for its modern, functional designs at affordable prices. The company aims to offer well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. IKEA has faced criticism for some of its tax avoidance practices through the use of complex corporate structures across multiple countries.

Uploaded by

iyya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

IKEA

Member’s Name :
1. Qirana Az-zahra 20180420276
2. Sekar Asna Ifina 20180420277
3. Maulidya Siti 20180420302
4. Faries Anantama 20180420306
IKEA
IKEA is a company that originates in sweden and manufactures
01 various products, and has a name and place in household furniture
products. The company was founded by ingvar kamprad in 1943 when
he was 17 years old and is now one of the richest people in the world.
IKEA is an abbreviation of its name, ingvar kamprad; the place he
was born, elmtaryd; and his village, agunnaryd.

Initially, IKEA sold a variety of items, from pens, wallets, photo frames, to
watches. The furniture began to enter the list in 1947 and IKEA began to
02 design itself in 1955. Sales were initially made by post and later, a store was
opened in älmhult which later became the IKEA store model for the next. On
march 23, 1963, the first IKEA store outside sweden opened in asker, near
oslo, norway. IKEA products are known for their modern designs and
sometimes are quite strange.
IKEA
Vision : to create a better life every day for
everyone
03

Mission: offer or provide household


04 furniture that is very diverse in design and
function at low prices

05 Business principle: low prices but not all prices

Business concept: You do a part, we do a part,


06 together we save money
Dimensions Of
IKEA Company
Culture
Hig Low Power Distance in IKEA has a flatter
organizational structure. organizations in IKEA have a
small proportion of supervisors and lower strata
workers containing qualified people. This means
IKEA has a low power distance.

IKEA management style tends to be collecticsm


meaning IKEA workers tend to have broader
relationships and know how to use internal
information networks besides working at IKEA
workers demand to understand the cultural roots of
IKEA learning by doing they work together to solve
problems
IKEA management style tends to be collecticsm
meaning IKEA workers tend to have broader
relationships and know how to use internal
information networks besides working at IKEA
workers demand to understand the cultural roots of
IKEA learning by doing they work together to solve
Dimensions Of IKEA Company Culture
Masculine versus pain minimal work in
ikea considered more adherent to
Uncertainty avoidance in IKEA is to have a
feminine values is a condition of important
tendency to low uncertainty avoidance this
values in society including attention to
company or organization has less
others and quality of life at work ikea
organizational structure less activity
tends to place the importance of
written rules managers prefer to take risk
workplace cooperation tends to be
and more ambitious labor. The
characterized by low levels of stress and
organization encourages personnel to use
managers give them freedom from the top
their initiative and take responsibility for
line to the bottom line to make their own
what they do themselves.
decisions in carrying out tasks in addition
he also gets a system of learning by doing
and not informality
IKEA STORE
The 5 largest IKEA outlets in the world:

 Stockholm Shanghai
Kungens  Shanghai Pudong
Curves, Baoshan, Beicai, China
Sweden China (55,032 (49,400 m2)
(55,200 m2) m2)

Wuxi, China Ningbo,


(49,117 m2) China (47,505
m2)
Ikea's IKEA workers at all levels are encouraged
people to take the initiative and make mistakes
are considered as part of "learning by
doing". Management is not only a variety
of information with workers but also with a
variety
of knowledge and expertise. IKEA wants
workers to feel important,they can express
ideas and feel responsible for
improvements in work
The IKEA and scandavian IKEA
management style
 Formal
 Open
 Full attention

How to Recruit
 Have the ability to
European IKEA / Leadership management
style Communicate
 The capacity to lead and take the  Think openly
Initiative  Have a positive work
 Various information and objectives Attitude
 Participate  Individual potential
 Self-control (internal)
How’s IKEA poeple IKEA way’s work?
working ?
Being a manager not only
IKEA HR management runs the store operations
follows Ikea's manner and and distribution system
Swedish tastes. smoothly
Because it isconsidered He must also be able to
a universal way. explain to other managers
examples of workers like and workers How to work
being able to participate in well by winning the hearts
decision making. and mindsets of consumers
as a result
IKEA STENGH
 Ikea design products are modern and long is
somewhat strange one of the principles of Ikea is to
reduce prices in various ways without reducing quality
 The character creates a path that directs visitors
to pass through the entire store area
 Brands that have been going international are
unique business models in construction
 Success has been carved from the value of
architectural prices offering customers innovative and
functional products
IKEA WEAKNESS
Recent years have shown a decline in sales growth.
A downturn in economic conditions in the European
core market companies have played a sizeable role in
the point of a key factor in the slowdown is the lack of
strategic direction. Controlled by Ikea from Sweden,
marketing strategies are organized around the world
with little variation. And this is a factor in the decline
in sales growth
TREATS
OPPORTUNITIES
 in a competitive retail market
 With so many sales opportunitie
growth major retailers are beginning
and then throughout the world in
to reflect the low cost flat furniture
this case the rapid development
value model that will have an impact
of the internet makes it able to
on the capacity of IKEA.
develop according to the progress of
 With economic worries over rising
the times
living costs and there is an overall
 Ikea has a big name so that it
threat to business performance and
can influence Pasar Baru in a
the sluggish European and American
positive direction
economies
IKEA
IKEA Tax Avoidance

On Friday February 12 a report


commissioned by the Greens/EFA Group in
the European Parliament lifted the curtain on This report, also known as the IKEA report, gives
the tax avoidance practices of IKEA. a clear insight on how a large international
corporation like IKEA can use the taxation rules
in the EU to its benefit. IKEA managed to avoid
an estimated sum of €1 billion over the course of
6 years.

By meticulously setting up a corporate web of


organisations, utilizing complicated structures,
sister companies, monetary transfers and In essence, this is a system designed to
secret beneficiaries, IKEA dodged taxes. avoid taxation. They simply analysed the
lacking taxation system that is currently in
place in the European Union and abused
its weaknesses.
IKEA
IKEA Tax Avoidance

Through internal financial transactions such Your Picture Here With most of its retail activities located in
as, paying royalties, interest, or other Europe, we prove that IKEA is using a series
charges to its sister companies and of tax loopholes in different European
subsidiaries, IKEA managed to make use of countries, namely the Netherlands, Belgium
different taxation rates. The main countries and Luxembourg to avoid paying taxes. One
they use for these kind of transfers are of the techniques is shifting royalties from
Holland, Lichtenstein, Luxembourg and each IKEA store to a subsidiary in the
Belgium. By doing so IKEA managed to Netherlands, which acts as a conduit. The
manoeuvre itself in such a way it avoided a royalties go in and out the Netherlands
large portion of its income taxes. untaxed and end up in Liechtenstein (or at
least partly).
Ikea is accused of avoiding taxes of up to 1 trillion euros in the period between
2009 and 2014.
IKEA TAX AVOIDANCE

In a report it was said that Ikea deliberately moved its money from all stores in
Europe through its subsidiary in the Netherlands

For 2014, tax avoidance by Ikea in Germany reached 35 million euros, 24 million
euros in France, and 11.6 million euros or more in the United Kingdom.

Other European countries, such as Sweden, Spain and Belgium, lost tax revenues
of between 7.5 million euros or to 10 million euros.
Thank you

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