Culture and Orgainzation Essay Example

old. IKEA specializes in designing and selling a variety of home articles, such as ready-to-assemble furniture, kitchen appliances, and home accessories. Their focus is on simplified eco-friendly interior design.

IKEA is well-known for its ability to control costs and develop innovative products, as well as for its functional and stylish designs. The brand has become synonymous with trendy products that offer both quality and affordability.

The global success of IKEA can be attributed to its strong organizational culture, which is consistently evident in all of its stores worldwide. This essay will analyze how IKEA has achieved this success by applying Schein's framework and explain its relevance to their case.

The Schein Framework is a popular method for examining organizational cultures, created by Edgar H. Schein during the 1980s. Within this framework, Schein defines three levels of organizational cultures that indicate when various cultural aspects become apparent to an external observer.

Figure 1.1 depicts Schein's layered conceptualisation of culture.

1. The observable level of culture is artifacts and creations. Artifacts refer to any visible, verbal, or touchable elements in an organization, such as interior design, decoration, dress code, staff uniform, and even speech. These elements serve as visible standards of culture but can be challenging to interpret. Furthermore, artifacts and creations can also inform people about the achievements of a group.
2. Another important level of culture is values and beliefs.

The level of values and beliefs is situated alongside visibility in an organization. These values and beliefs refer to the stated values and behavioral guidelines that the organization operates by. Unlike behaviors, they are not directly observable.

They serve as a representation of the organization to both its members and others. This representation is often manifested through philosophies and public identity, and can also reflect the aspirations of members for the future. For instance, it can be seen in the professionalism displayed by employees. However, problems may occur if the values advocated by leaders do not align with the general assumptions of the culture.

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3. Basic Assumptions

The core of an organizational culture is rooted in its deeply ingrained and subconscious behaviors, which are a collection of fundamental assumptions. These assumptions, originating from values, gradually become instinctive and are challenging to express internally. As the definition implies and the cartoon portrays, individuals may lack awareness or ability to verbalize the underlying beliefs that shape their culture.

The application of the Schein Framework in the IKEA case can be observed.

Edgar H. Schein is highly regarded in the field of organizational culture research, and his theory offers a well-defined definition that is widely acknowledged and utilized in academia. The IKEA case demonstrates multiple aspects that correspond with the Schein framework.

The company's name

The name IKEA is a shortened version made by merging the first letters of the founder, Mr. Ingvar Kamprad, with the initials of Elmtaryd and Agunnaryd, the farm and village where he was raised.

The organization's name is the initial impression that individuals have of it. For IKEA, their name acts as a symbol, aiding in identifying the company's origin and importance. By means of its name, IKEA effortlessly

establishes a distinct image since everyone is aware that they are a Swedish company.

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2. The Founder

Mr. Ingvar Kamprad was born in 1926 on a farm called Elmtaryd, located in the south of Sweden. At the age of 17, he received money from his father as a reward for his academic achievements, and this enabled him to establish IKEA in 1943. The IKEA website mentions that Ingvar Kamprad, the founder of IKEA, showed his business skills at a young age. When he was just 5 years old, he started selling matches to his neighbors. By the time he turned 7 years old, he expanded his sales territory by using his bicycle.

Ingvar Kamprad, despite his immense wealth, is renowned for his frugality. He opts against owning luxurious vehicles and favors flying in economy class. Additionally, he promotes the practice of using both sides of paper and recycling tea bags among his employees. Kamprad even takes it to the extent of keeping salt and pepper packets from restaurants. Moreover, he frequently visits IKEA not only for inexpensive meals but also to buy gifts during post-Christmas sales.

According to the Schein framework, narratives in the organization, such as legends and myths, serve the purpose of instilling pride in both internal and external individuals. IKEA has adopted this approach by sharing successful stories and Kamprad's life philosophy with its staff and the public. By doing so, it has influenced IKEA's vision and future marketing strategies, allowing them to provide affordable prices for better everyday experiences. 3.

The Nation

Sweden, a northern European country, is renowned for its modernity, freedom, and democracy. The Swedish population enjoys a high quality of life [1]. The government places great emphasis on safeguarding the environment. Thanks to an efficient political system, robust social welfare structure, and a stable economy, Sweden was acknowledged as the world's second most competitive nation in 2010 by the World Economic Forum (Klaus Schwab, 2010). Additionally, Sweden's design factory has gained international acclaim as it houses famous brands like IKEA and fashion wholesaler Hennes & Mauritz (H&M).

The impact of National Culture on Kamprad is evident in various aspects of IKEA. It is noticeable that both the colour scheme used in the IKEA logo and the staff uniform bear a resemblance to the Swedish national flag. The colour blue symbolizes trust, while the colour yellow portrays happiness, optimism, and imagination, making it another emblem of IKEA's culture.

When you go to an IKEA store, you will see that many of them have a restaurant or cafe. In these places, IKEA serves a range of food options including meals, snacks, soft drinks, and traditional Swedish dishes like Kottbullar (Swedish meatballs) and Kutfish. By having restaurants in their stores, IKEA has brought Swedish culinary culture to people worldwide.

Paragraph 4: Vision and Business Idea

The majority of Organisations possess their own Vision, Mission, and Core Values (VMV). IKEA's vision and business idea (beliefs) are extensively presented on their company website in lengthy paragraphs.

The website explains that IKEA's goal is to enhance people's daily lives through a wide range of affordable, well-designed, and functional home furnishing products.

They achieve this by making their products accessible to a large number of individuals. Their target customers are those who prioritize affordability and are willing to handle the self-service, transportation, and assembly in exchange for lower prices.

IKEA focuses on attracting young and low to middle income families through the offering of a wide range of flexible, multi-functional, and affordable products. Their primary principles can be summarized in three aspects:

1. Our product range includes:

“The IKEA product range prioritizes affordability while still delivering good design and functionality. Whether you have a romantic or minimalist style, or something in between, our home furnishing solutions cater to everyone. We strive to ensure that our products meet your everyday needs and eliminate any unnecessary elements. Our designers and product developers consistently work hard to co-ordinate and deliver the style that you prefer, all at a low price." [2]

Customers at IKEA can discover a wide selection of more than 1,500 products in different styles. These include ready-to-assemble furniture and small home accessories. The store also provides customer-made services and professional guidance to help customers achieve their desired interior style.

The prices are affordable.

IKEA's vision and business idea are based on the principle of offering low prices. The underlying concept behind all their products is that affordable prices allow everyone to have access to well-designed and functional home furnishings. IKEA consistently works towards enhancing, streamlining, and operating efficiently while still maintaining cost-effectiveness.

IKEA meets the needs of their target customers in the low-income and middle class brackets by consistently providing products that have a combination of good quality, attractive design,

and affordable prices. This allows customers to enjoy reasonable pricing while also benefiting from durable goods. Moreover, IKEA provides packaging applications that encourage customers to pick up and assemble products themselves instead of using delivery services. This strategy helps IKEA reduce selling prices and gives customers the opportunity to assemble the products at home.

3. Enhancing the quality of daily existence

The furniture business at IKEA is focused on affordability. They aim to fulfill people's needs and preferences while providing quality products at a reasonable price by maximizing the use of raw materials. [2]

The core belief of IKEA is that everyone should have the opportunity to improve their quality of life and the environment. To achieve this, they prioritize designing affordable products before development, with a focus on promoting a human-centered concept of "home design."

Furthermore, IKEA is dedicated to using eco-friendly materials and being environmentally friendly. Swedwood, one of their raw material suppliers, operates manufacturing units in 11 countries. IKEA prioritizes cost-efficiency during the production process while also taking social and environmental responsibility.