Vision, Values and Mission in Driving Strategy An IKEA case study
Page 5: Strategy
Strategy is a plan that turns the vision and mission of a company, underpinned by its values, into a set of actions that gives a business a competitive advantage in the market. IKEA’s strategy has always been to design and develop products based on consumers’ everyday needs, keeping prices low and providing functional, attractive and reliable furnishings and solutions. Sustainability has been at the root of IKEA’s strategy throughout its evolution. In 2012 it launched its People and Planet Positive sustainability strategy, which sets out the company’s approach to achieving positive social and environmental impacts. This sustainability strategy brings all the elements of vision, values and mission together to drive innovation and transform the IKEA business. This will strengthen IKEA’s competitiveness by securing long-term access to important raw materials and energy supplies, maintaining and developing its supplier base, developing relationships with co-workers and customers, and increasing market share.
For example, IKEA is one of the founding members and the largest purchaser (in the retail sector) of the Forest Stewardship Council (FSC) certified wood, which is still in relatively limited supply globally.
IKEA works with 21 foresters to ensure that all wood is sourced in compliance with the Company’s strict sustainable forestry standards. Over 30% of the wood used to make products is currently from more sustainable sources - this is wood that is recycled or comes from FSC certified sources. IKEA aims to have increased this to 50% by 2017.
By 2020, IKEA plans to renewably produce as much energy as it consumes in its operations. It owns and operates 137 wind turbines globally and currently has 550,000 solar panels on its buildings, with plans in place to install more. In 2013 it produced renewable energy equivalent to 37% of its total energy consumption. The company also plans to offer the most energy efficient home appliances on the market, at the lowest price. By 2016, its full lighting range will have switched LED bulbs that last for 20 years and use up to 85% less energy than incandescent bulbs.
The company is also working to inspire millions of customers to live a more sustainable life at home, introducing innovative products and services to help customers use less energy and produce their own renewable power, save and recycle water and reduce and recycle waste.
IKEA’s strategy is also aimed at its co-workers. Forexample, its diversity and inclusion strategy includes the goal of having women in half of all management positions at all levels across the business. IKEA also encourages coworkers to participate in community involvement activities in their local area.
By August 2020, more than 500 co-workers from around the world will have participated in IKEA Foundation ‘I Witness’ trips by visiting school and community based programmes run by UNICEF and Save the Children which are supported by the IKEA Foundation’s annual good cause campaigns.The IKEA Foundation is a charitable organisation that donates tens of millions of Euros to charities each year through funds set aside from IKEA profits. The Foundation supports organisations which fight the root causes of child labour in countries such as India and Pakistan.
Other programmes include empowering women and girls through education, skills training, improved healthcare, or providing a loan to set up small businesses. Such projects have already benefitted over 100 million children.
IKEA | Vision, Values and Mission in Driving Strategy