| IKEA International Group | |
|---|---|
| Type | Dutch private company |
| Founded | 1943 in Älmhult, Småland, Sweden |
| Founder | Ingvar Kamprad |
| Headquarters | Leiden, South Holland, The Netherlands |
| Area served | See section on IKEA Stores |
| Key people | Anders Dahlvig, President Hans Gydell, President Inter IKEA Group |
| Industry | Retail (Specialty) |
| Products | self-assembly furniture, See section on products |
| Revenue | $28. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands The term privately held company refers to ownership of a business company in two different ways first referring to ownership by non-governmental organizations and second Älmhult Municipality ( Älmhults kommun) is a municipality in central Kronoberg County in southern Sweden, where the town of Älmhult is a historical province ( landskap) in southern Sweden. Småland borders Blekinge, Scania or Skåne Halland, "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. An entrepreneur is a person who has possession over a company enterprise, or Venture, and assumes significant accountability for the inherent risks and the outcome Ingvar Feodor Kamprad ( (born March 30, 1926) is a Swedish Entrepreneur who is the founder of the Home Furnishing "Leyden" redirects here For other uses see Leyden (disambiguation. South Holland ( Dutch:) is a province situated on the North Sea in the western part of the Netherlands. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands IKEA is a privately-held international home products retailer that sells flat pack Furniture, accessories bathrooms and kitchens at retail stores around the world President is a Title leaders of Organizations companies, Trade unions universities, and countries. For other uses of this term see Industry (disambiguation An industry (from Latin industrius, "diligent industrious" In Marketing, a product is anything that can be offered to a Market that might satisfy a want or need Ready-to-assemble (RTA furniture, also known as "knock-down furniture" or "flat pack furniture" is a form of furniture that is purchased in multiple pieces and requires In business revenue or revenues is Income that a company receives from its normal business activities usually from the sale of goods and services 6 billion USD (▲ 14%) (FY 2007) |
| Employees | 118,000 (2007) |
| Website | www.ikea.com |
IKEA is a privately-held, international home products retailer that sells flat pack furniture, accessories, bathrooms and kitchens at retail stores around the world. Ready-to-assemble (RTA furniture, also known as "knock-down furniture" or "flat pack furniture" is a form of furniture that is purchased in multiple pieces and requires Furniture is the Mass noun for the movable objects which may support the human body (seating furniture and beds, provide storage or hold objects on horizontal The company, which pioneered flat-pack design furniture at affordable prices, is now the world's largest furniture manufacturer. [1]
IKEA was founded in 1943 by Ingvar Kamprad in Sweden and it is owned by a Dutch-registered foundation controlled by the Kamprad family. Ingvar Feodor Kamprad ( (born March 30, 1926) is a Swedish Entrepreneur who is the founder of the Home Furnishing "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands IKEA is an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home county (Agunnaryd, in Småland, South Sweden). [2]
INGKA Holding B. V. is the parent company for all IKEA Group companies, including the industrial group Swedwood, which manufactures IKEA furniture, the sales companies that run IKEA stores, as well as purchasing and supply functions, and IKEA of Sweden, which is responsible for the design and development of products in the IKEA range. INGKA Holding BV is wholly owned by Stichting INGKA Foundation, which is a foundation registered in Leiden in the Netherlands. The Stichting INGKA Foundation is a Dutch foundation founded in 1982 by Ingvar Kamprad, who is chairman A foundation is a legal categorization of Nonprofit organizations. "Leyden" redirects here For other uses see Leyden (disambiguation. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands
Inter IKEA Systems B. V. in Delft, also in the Netherlands, owns the IKEA concept and trademark, and there is a franchising agreement with every IKEA store in the world. Delft is a city and Municipality in the province of South Holland (Zuid-Holland the Netherlands. The IKEA Group is the biggest franchisee of Inter IKEA Systems B. V.
Contents |
The company distributes its products through its retail outlets. The chain has 278 stores in 36 countries, most of them in Europe, the United States, Canada, Asia and Australia. The United States of America —commonly referred to as the Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page For a topic outline on this subject see List of basic Australia topics. 2006 saw the opening of 16 new stores. A total of at least 30 openings or relocations are planned for 2008. IKEA is one of the few store chains to have locations both in Israel and in other Middle Eastern nations. For a topic outline on this subject see List of basic Israel topics. The Middle East is a Subcontinent with no clear boundaries often used as a synonym to Near East, in opposition to Far East.
IKEA is generally pronounced /i'ke.a/ but in many English-speaking regions, it is pronounced /ai'kiːa/, rhyming with the word idea. As such, IKEA brought action in the Supreme Court of British Columbia successfully preventing a competitor in Victoria from using the name Idea. The Supreme Court of British Columbia (SCBC is the superior trial court for the Canadian province of British Columbia Victoria (vɪkˈtɔɹiə is the capital city of British Columbia. It is generally pronounced /i'ki.a/ in China, Singapore and Taiwan. China ( Wade-Giles ( Mandarin) Chung¹kuo² is a cultural region, an ancient Civilization, and depending on perspective a National Singapore Taiwan ( Taiwanese: Tâi-oân/Tāi-oân (historically 大灣/台員/大員/台圓/大圓/台窩灣 is an Island in East Asia. Its Chinese name is Yíjīa (宜家), which literally means fit for home in written Chinese and resembles the phrase right now in Cantonese pronunciation. Standard Cantonese is the standard variant of the Cantonese (Yuet language
The IKEA Website contains about 12,000 products and is the closest representation of the entire IKEA range. In 2005 IKEA reported over 275 million visitors to their websites.
IKEA has shown leadership in adopting more environmentally friendly measures in its manufacturing processes. Environmental friendly, eco-friendly, and nature friendly are synonyms used to refer to Goods and services considered to inflict minimal harm In 1990, IKEA adopted The Natural Step framework a the basis for its environmental plan (see "Environmental performance," below). The Natural Step is a nonprofit organization founded in Sweden in 1989 by Swedish scientist Karl-Henrik Robèrt. IKEA is a privately-held international home products retailer that sells flat pack Furniture, accessories bathrooms and kitchens at retail stores around the world [3]
IKEA was founded in Älmhult, Sweden, in 1943 by Ingvar Kamprad, then 17. Älmhult Municipality ( Älmhults kommun) is a municipality in central Kronoberg County in southern Sweden, where the town of Älmhult "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Ingvar Feodor Kamprad ( (born March 30, 1926) is a Swedish Entrepreneur who is the founder of the Home Furnishing The acronym IKEA is incidentally similar to the Greek word οικία [oikia] (home) and to the Finnish word oikea (correct, right), but was originally an abbreviation for "Ingvar Kamprad Elmtaryd Agunnaryd" which was the address where Ingvar Kamprad started the company that is called IKEA. Greek (el ελληνική γλώσσα or simply el ελληνικά — "Hellenic" is an Indo-European language, spoken today by 15-22 million people mainly Finnish ( or suomen kieli) is the language spoken by the majority of the population in Finland (92% As of 2006) and by ethnic Finns outside
Originally, IKEA sold pens, wallets, picture frames, table runners, watches, jewellery and nylon stockings or practically anything Kamprad found a need for that he could fill with a product at a reduced price. A pen (Latin pinna, feather is a Writing instrument used to apply Ink to a surface usually Paper. A wallet, or billfold, is a small flat case used to carry personal items such as Cash, Credit cards and identification documents such as a Driver's A picture frame is a container added to a picture in order to enhance it make it easier to display or in some cases to protect it Furniture is the Mass noun for the movable objects which may support the human body (seating furniture and beds, provide storage or hold objects on horizontal A watch is a timepiece that is made to be worn on a person The term now usually refers to a wristwatch, which is worn on the wrist with a strap or Bracelet. Jewellery (also spelled jewelry, see spelling differences) is a personal Ornament, such as a necklace ring or bracelet made from Gemstones Overview Nylon is a Thermoplastic silky material first used commercially in a nylon- Bristled Toothbrush (1938 followed more famously by A stocking, sometimes referred to as hose is a close-fitting variously elastic garment covering the Foot and lower part of the Leg. Furniture was first added to the IKEA product range in 1948 and, in 1955, IKEA began to design its own furniture. Furniture is the Mass noun for the movable objects which may support the human body (seating furniture and beds, provide storage or hold objects on horizontal The company motto is: "to create a better everyday life for the many people. "
At first, Kamprad sold his goods out of his home and by mail order, but eventually a store was opened in the nearby town of Älmhult. Mail order is a term which describes the Buying of goods or services by Mail delivery Älmhult Municipality ( Älmhults kommun) is a municipality in central Kronoberg County in southern Sweden, where the town of Älmhult It was also the location for the first IKEA "warehouse" store which came to serve as a model for IKEA establishments elsewhere. On March 23, 1963, the first store outside Sweden was opened in Asker, a Norwegian municipality outside Oslo. Events 1174 - Jocelin, Abbot of Melrose, is elected Bishop of Glasgow. Year 1963 ( MCMLXIII) was a Common year starting on Tuesday (link will display full calendar of the Gregorian calendar. Asker is a municipality in the county of Akershus, Norway and a Suburb of Oslo. Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional (called Christiania from 1624 to 1878 and Kristiania from 1878 to 1924 is the Capital and largest city of Norway.
The first IKEA store was opened in Sweden in 1958. The original IKEA store was opened in Sweden in 1958 The first stores outside Sweden were opened in Norway (1963 and Denmark (1969 "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. The first stores outside Sweden were opened in Norway (1963) and Denmark (1969). Norway ( Norwegian: Norge ( Bokmål) or Noreg ( Nynorsk) officially the Kingdom of Norway, is a Constitutional The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe The 1970s saw the spread of stores to other parts of Europe, with the first store outside Scandinavia opening in Switzerland (1973), followed by Germany (1974). Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. During the same decade, stores were opened in other parts of the world, including Japan (1974), Australia and Hong Kong (1975), Canada (1976) and Singapore (1978). For a topic outline on this subject see List of basic Japan topics. For a topic outline on this subject see List of basic Australia topics. Hong Kong ( officially the Hong Kong Special Administrative Region, is a territory located on China 's south coast on the Pearl River Delta, and borders Country to "Dominion of Canada" or "Canadian Federation" or anything else please read the Talk Page Singapore Germany, with 43 stores, is IKEA's biggest market, followed by the United States, with 34. The United States of America —commonly referred to as the IKEA now has 278 stores in over 35 countries. However, the company has thus far not shown much of a presence in the developing countries. Developing countries are countries that haven't reached Western-style standards of democratic government free market economy industrialization social programs and human rights guaranties [4]
Newer IKEA stores are usually very large blue buildings with few windows. They are often designed around a "one-way" layout which leads customers along "the long natural way". This layout is designed to encourage the customer to see the store in its entirety (as opposed to a traditional retail store, which allows a consumer to go right to the section that the goods and services needed are displayed) although there are often shortcuts to other parts of the showroom. The sequence first involves going through furniture showrooms making note of selected items. Then the customer collects a trolley and goes into house wares (market-hall). Then the customer visits the warehouse (Self Serve) where they collect previously noted showroom products in flat pack form. Flat pack is also a term used to describe Ready-to-assemble furniture Flatpack is a US military standardized Printed-circuit-board surface-mount-component Sometimes they may be directed to collect products from an external warehouse on the same site or at a site nearby. Finally they take their products to the cashier's station to make payment.
Newer IKEA stores, like the one in Koblenz, Germany, make more use of glass, both for aesthetic and functional reasons. Koblenz (also Coblenz in pre-1926 German Spellings French Coblence) is a city situated on both banks of the Rhine Germany, officially the Federal Republic of Germany ( ˈbʊndəsʁepuˌbliːk ˈdɔʏtʃlant is a Country in Central Europe. Skylights are also now common in the Self-serve warehouses. More natural light reduces energy costs, improves worker morale and gives a better impression of the product.
Whilst the original design involved the warehouse on the lower level and the showroom and marketplace on the upper, today most stores globally have the Showroom upstairs with the marketplace and warehouse downstairs. Additionally, some stores are single level. Some stores maintain separate warehouses to allow more stock to be kept on-site at any given time, although this occasionally results in challenges in finding the items, as well as a perception of having to queue in line twice. Single-level stores are found predominantly in areas where the cost of land would be less than the cost of building a 2-level store -- examples include the store in Saarlouis, Germany and Haparanda, Sweden. Saarlouis (zaːrˈlʊɪ in German; French: Sarrelouis) is a city in the Saarland, Germany, capital of the district of Saarlouis Haparanda (Finnish Haaparanta, meaning aspen + river bank) is a town in Norrbotten, northern Sweden, and the seat of "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation.
Most IKEA stores offer an "as-is" area at the end of the warehouse just prior to the cashiers. Returned, damaged and formerly showcased products which are not in "as new" condition or taken out of the IKEA product range are displayed here, and sold with a negotiable discount, but also with a "no-returns" policy. Most IKEA stores communicate the IKEA policy on environmental issues in the "as-is". In the United Kingdom, Canada and Australia, this is referred to as "Bargain Corner".
In Hong Kong, where shop space is limited and costly, IKEA has opened three outlets across the city, which are actually part of shopping malls. They are relatively tiny compared to common "large blue box" store design, but are huge by Hong Kong standard. Most of the outlets still have a "one-way" layout. An exception is the newest outlet in Telford Plaza, where the three independent floors can be accessed freely from each. Telford Garden (德福花園 is a Private housing estate located beside Kowloon Bay Station of the MTR, in Ngau Tau Kok, New Kowloon Following IKEA tradition, though, the only cashier is located on the lowest floor.
The vast majority of IKEA stores are located outside of city centres, primarily because of land cost and traffic access. Several smaller store formats have been unsuccessfully tested in the past (the "midi" concept in the early 90s, which was tested in Ottawa and Heerlen with 9,300 m2, or a "boutique" shop in Manhattan). A new format for a full-size, city centre store was introduced with the opening of the Coventry (UK) store in December 2007. This is in response to UK government restrictions blocking retail establishment outside city centres, and the format is expected to be used for future IKEA stores in the UK. The Coventry store has 7 levels and therefore has a flow different from other IKEA stores.
Many stores include restaurants serving typical Swedish food such as potatoes with meatballs, cream sauce and lingonberry jam and hot dogs for only 5 kr each, a few varieties of the local cuisine, and beverages such as lingonberry juice. A restaurant is a retail establishment that serves prepared Food to Customers. The Vaccinium vitis-idaea &ndash often called lingonberry also called cowberry, foxberry, mountain cranberry, red whortleberry The restaurant area is usually the one place in the store where there are large windows. Outside of Sweden, these restaurants are sometimes complemented by mini-shops selling Swedish-made, Swedish-style groceries. One can buy IKEA's specialty foodstuffs, such as Swedish meatballs from the store. A meatball is a generally mass of ground Meat that is typically rolled meat comprised of rolled ground beef and other ingredients such as Bread or
In many locations the IKEA restaurants open daily before the rest of the store and serve a cheap breakfast. Breakfast is the first meal of the day The word derives from the idea of break ing the '''fast''' of sleep
Many stores also include food markets specializing in Swedish food. Patrons can purchase various assortments of Swedish meatballs, packages of gravy, and various Scandinavian cookies and crackers. IKEA also sells lingonberry jam in a wide array of sizes, including buckets. Lingonberry jam ( lingonsylt) is a staple food in Scandinavian Cuisine.
IKEA furniture is well known for its modern, utilitarian design. Much of IKEA's furniture is designed to be assembled by the consumer rather than being sold pre-assembled. Ready-to-assemble (RTA furniture, also known as "knock-down furniture" or "flat pack furniture" is a form of furniture that is purchased in multiple pieces and requires IKEA claims this permits them to reduce costs and use of packaging by not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped unassembled rather than assembled. The volume of any solid plasma vacuum or theoretical object is how much three- Dimensional space it occupies often quantified numerically This is also a practical point for many of the chain's European customers, where public transport is commonly used; the flat-pack distribution methods allow for easier transport via public transport from the store to a customer's home for assembly.
IKEA contends that it has been a pioneering force in sustainable approaches to mass consumer culture. Kungens Kurva (literally "The King's Bend" is a part of Huddinge Municipality in Metropolitan Stockholm, Sweden. ('stɔkhɔlm is Sweden 's Capital and its largest City. It is the site of the national Swedish government, the parliament, and the "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. Consumerism is the equation of personal Happiness with the purchase of material possessions and consumption. Kamprad refers to the concept as "democratic design," meaning that the company applies an integrated approach to manufacturing and design (see also environmental design). Manufacturing (from Latin manu factura, "making by hand" is the use of tools and labor to make things for use or sale Design is used both as a Noun and a Verb. The term is often tied to the various Applied arts and Engineering (See design disciplines Environmental design is the process of addressing environmental parameters when devising plans programs policies buildings or products In response to the explosion of human population and material expectations in the 20th and 21st century, the company implements economies of scale, capturing material streams and creating manufacturing processes that hold costs and resource use down, such as the extensive use of particle board. Particle board, or particleboard, (called "chipboard" in some countries is an Engineered wood product manufactured from Wood particles such The intended result is flexible, adaptable home furnishings, scalable both to smaller homes and dwellings as well as large houses.
IKEA has also expanded their product base to include flat-pack houses, in an effort to cut prices involved in a first-time buyer's home. The product, named BoKlok was launched in Sweden in 1996 in a joint venture with Skanska. Skanska, is a multinational Construction and development company based in Sweden, where it is also the largest construction company Now working in the Nordic countries and in UK, sites confirmed in England include London, Manchester, Leeds, Gateshead and Liverpool. England is a Country which is part of the United Kingdom. Its inhabitants account for more than 83% of the total UK population whilst its mainland London ( ˈlʌndən is the capital and largest urban area in the United Kingdom. Leeds ( is located on the River Aire in West Yorkshire, England Gateshead is a town in Tyne and Wear, England. It lies on the southern bank of the River Tyne, opposite Newcastle upon Tyne. Liverpool ( is a City and Metropolitan borough of Merseyside, England along the eastern side of the Mersey Estuary [5]
Although IKEA household products and furniture are designed in Sweden, they are largely manufactured in developing countries to keep down costs. With suppliers in 50 countries, roughly 2/3 of purchasing is from Europe with about 1/3 from Asia. A small amount of products are produced in North America. Comparatively little production actually takes place in Sweden, though it still remains the fourth-largest supplier country (behind China, Poland and Italy). China accounts for about 2. 5 times as much supply as Sweden.
IKEA products are identified by single word names. Most of the names are Swedish in origin. Swedish ( is a North Germanic language spoken by more than nine million people predominantly in Sweden and parts of Finland, especially along the Although there are some notable exceptions, most product names are based on a special naming system developed by IKEA. [6]
For example, DUKTIG (meaning: good, well-behaved) is a line of children's toys, OSLO is a name of a bed, BILLY (a Swedish masculine name) is a popular shelf, DINERA (meaning: dine) for tableware, KASSETT (meaning: cassette) for media storage. The Klippan Sofa is a popular model of Sofa manufactured and sold by IKEA. One range of office furniture is named EFFEKTIV (meaning: efficient), SKÄRPT (meaning: sharp or clever) is a line of kitchen knives.
A notable exception is the IVAR shelving system, which dates back to the early 1970s. This item is named after the item's designer.
Because IKEA is a world-wide company working in several countries with several different languages, sometimes the Nordic naming leads to problems where the word means something completely different to the product. While exotic-sounding names draw an attention, e. g. , in anglophone countries, a number of them call for a snicker. An Anglophone (or anglophone) is someone who speaks the English language. Notable examples are "Jerker" desk, "Fartfull" workbench, or "Lessebo" sofa. [7] The products are withdrawn, probably after someone pointed at blunders, but not before generating some news. Similar blunders happen with other companies as well. [8]
Company founder Ingvar Kamprad, who is dyslexic, found that naming the furniture with proper names and words, rather than a product code, made the names easier to remember. Dyslexia is considered to be a Learning disability. It manifests primarily as a difficulty with written language particularly with Reading and Spelling
IKEA publishes an annual catalogue. The IKEA Catalogue (US spelling IKEA Catalog) is a popular Mail-order catalogue published annually by the Swedish home furnishing retailer IKEA First published in Swedish in 1951, the catalogue is now published in 55 editions, in 27 languages for 36 countries,[9] and is considered to be the main marketing tool of the retail giant, consuming 70% of the company's annual marketing budget. Swedish ( is a North Germanic language spoken by more than nine million people predominantly in Sweden and parts of Finland, especially along the [10]
The catalogue is distributed both in stores and by mail. [11] Most of the catalogue is produced by IKEA Communications AB in IKEA's hometown of Älmhult, Sweden where IKEA operates the largest photo studio in northern Europe at 8,000 square metres in size. Älmhult Municipality ( Älmhults kommun) is a municipality in central Kronoberg County in southern Sweden, where the town of Älmhult [12] The catalogue itself is printed on chlorine-free paper of 10-15% post-consumer waste.
According to Canadian broadcaster, CTV, "IKEA's publications have developed an almost cult-like following online. CTV is a Canadian English language Television network. It is Canada's largest privately owned network the main television asset of CTVglobemedia Readers have found all kinds of strange tidbits, including mysterious cat pictures, apparent Mickey Mouse references and weird books wedged into the many shelves that clutter the catalogues. The Bookseller/Diagram Prize for Oddest Title of the Year, also known as the Diagram Prize, is a humorous Literary award, normally given each year to the book "
In common with some other retailers, IKEA has launched a loyalty card in its stores in Sweden, Denmark, Finland, the UK, the Netherlands, Belgium, Germany, Austria, Russia, China, Japan, Switzerland, Slovakia, Poland and Italy called "IKEA Family". Loyalty programs are structured marketing efforts that reward and therefore encourage loyal buying behaviour — behaviour which is potentially of benefit to the firm The distinctive orange card is free of charge and can be used to obtain discounts on a special range of products found in each IKEA store. In particular, it gives 25% off the price of commissioned ranges of IKEA products on presentation of the card. The card also gives discounts on food purchased in the restaurant and the Swedish Food Market. In the Netherlands, Denmark, Belgium, Germany, Austria, Russia, Japan, UK, Switzerland, Slovakia and Poland it also entitles the holder to free coffee in the restaurant.
In conjunction with the card, IKEA also publishes and sells a printed quarterly magazine titled IKEA Family Live which supplements the card and catalogue. The magazine is already printed in thirteen languages and an English edition for the United Kingdom was launched in February 2007. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located It is expected to have a subscription of over 500,000. [13]
Despite its Swedish roots, IKEA is owned and operated by a complicated array of not-for-profit and for-profit corporations. A non-profit organization ( abbreviated "NPO" also "not-for-profit" is a legally constituted Organization whose objective is to support or engage A business (also called firm or an enterprise) is a legally recognized organizational entity designed to provide goods and/or services to A corporation is a separate legal entity usually used to conduct business
The IKEA corporate structure is divided into two main parts: operations and franchising. Most of IKEA's operations, including the management of the majority of its stores, the design and manufacture of its furniture, and purchasing and supply functions are overseen by Ingka Holding, a private, for-profit Dutch company. The Netherlands ( Dutch:, ˈnedərlɑnt is the European part of the Kingdom of the Netherlands, which consists of the Netherlands the Netherlands Of the IKEA stores in 36 countries, 235 are run by the INGKA Holding. The remaining 30 stores are run by franchisees outside of the INGKA Holding. [14]
INGKA Holding is not an independent company, but is wholly owned by the Stichting Ingka Foundation, which Kamprad established in 1982 in the Netherlands as a tax-exempt, not-for-profit foundation. The Stichting INGKA Foundation is a Dutch foundation founded in 1982 by Ingvar Kamprad, who is chairman A foundation is a legal categorization of Nonprofit organizations. The Ingka Foundation is controlled by a five-member executive committee that is chaired by Kamprad and includes his wife and attorney. [15]
While most IKEA stores operate under the direct purview of Ingka Holding and the Ingka Foundation, the IKEA trademark and concept is owned by an entirely separate Dutch company, Inter IKEA Systems. A trademark or trade mark, represented by the symbols ™ and ®, or mark is a distinctive sign or indicator used by an individual Every IKEA store, including those run by Ingka Holding, pays a franchise fee of 3% of the revenue to Inter IKEA Systems. A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom The ownership of Inter IKEA Systems is exceedingly complicated and, ultimately, uncertain. Inter IKEA Systems is owned by Inter IKEA Holding, a company registered in Luxembourg. Inter IKEA Holding, in turn, belongs to an identically named company in the Netherlands Antilles that is run by a trust company based in Curaçao. The Netherlands Antilles ( Dutch:) previously known as the Netherlands West Indies or Dutch Antilles/West Indies, is part of the Lesser Antilles Curaçao (ˈkjuːrəsaʊ in English Dutch: Curaçao, Papiamento: Kòrsou) is an Island in the southern Caribbean Sea, The owners of this trust company are unknown (IKEA refuses to identify them) but are assumed to be members of the Kamprad family. [15]
In Australia, IKEA is operated by two companies. For a topic outline on this subject see List of basic Australia topics. Stores located on the East Coast including Queensland, New South Wales, and Victoria are owned by INGKA Holding. Queensland is a state of Australia, occupying the north-eastern corner of the mainland continent The Stichting INGKA Foundation is a Dutch foundation founded in 1982 by Ingvar Kamprad, who is chairman Stores on the Western side of the country including South Australia and Western Australia are owned by Cebas Pty Ltd[16]. South Australia is a state of Australia in the southern central part of the country Western Australia is a state occupying the entire western third of the Australian continent. Like elsewhere, all stores are operated under a franchise agreement with Inter IKEA Systems.
In 2004, the last year that the INGKA Holding group filed accounts, the company reported profits of €1. 4 billion on sales of €12. 8 billion, a margin of nearly 11 percent. Because INGKA Holding is owned by the nonprofit INGKA Foundation, none of this profit is taxed. The foundation's nonprofit status also means that the Kamprad family cannot reap these profits directly, but the Kamprads do collect a portion of IKEA sales profits through the franchising relationship between INGKA Holding and Inter IKEA Systems.
Inter IKEA Systems collected €631 million of franchise fees in 2004, but reported pre-tax profits of only €225 million in 2004. A franchise fee is a fee that a person pays to operate a franchise branch of a larger company and enjoy the profits therefrom One of the major pre-tax expenses that Inter IKEA systems reported was €590 million of “other operating charges. ” IKEA has refused to explain these charges, but Inter IKEA Systems appears to make large payments to I. I. Holding, another Luxembourg-registered group that, according to The Economist, “is almost certain to be controlled by the Kamprad family”. The Economist is an English-language weekly news and International affairs publication owned by The Economist Newspaper Ltd and edited in London I. I. Holding made a profit of €328 million in 2004.
In 2004, the Inter IKEA group of companies and I. I. Holding reported combined profits of €553m and paid €19m in taxes, or approximately 3. 5 percent. [15]
The Berne Declaration, a non-profit organization in Switzerland that promotes corporate responsibility, has formally criticized IKEA for its tax avoidance strategies. Switzerland (English pronunciation; Schweiz Swiss German: Schwyz or Schwiiz Suisse Svizzera Svizra officially the Swiss Confederation In 2007, the Berne Declaration nominated IKEA for one of its Public Eye “awards,” which highlight corporate irresponsibility and are announced during the World Economic Forum in Davos, Switzerland. The World Economic Forum (WEF is a Geneva -based Non-profit foundation best known for its Annual Meeting in Davos, Switzerland Davos ( Romansh: Tavau, Italian: Tavate is a municipality in the district of Prättigau/Davos in the canton of [17]
Along with helping IKEA make non-taxable profit, IKEA's complicated corporate structure allows Kamprad to maintain tight control over the operations of Ingka Holding, and thus the operation of most IKEA stores. The Ingka Foundation’s five-person executive committee is chaired by Kamprad. It appoints the board of Ingka Holding, approves any changes to Ingka Holding’s bylaws, and has the right to preempt new share issues. If a member of the executive committee quits or dies, the other four members appoint his or her replacement.
In Kamprad's absence the foundation's bylaws include specific provisions requiring it to continue operating the Ingka Holding group and specifying that shares can be sold only to another foundation with the same objectives as the Ingka Foundation. [15]
The INGKA Foundation is officially dedicated to promoting “innovations in architecture and interior design”. The Stichting INGKA Foundation is a Dutch foundation founded in 1982 by Ingvar Kamprad, who is chairman The term architecture (from Greek αρχιτεκτονικήarchitektoniki) can be used to mean a process a profession or documentation Interior design is a practice concerned with anything that is found inside a space - walls windows doors finishes textures light furnishings and furniture [15] With an estimated net worth of $36 billion, the foundation is unofficially the world’s largest charitable organization, beating out the much better known Bill and Melinda Gates Foundation, which has a net worth of approximately $33 billion. The definition of charitable organization, and of charity varies according to the country and in some instances the region of the country in which the charitable organization operates The Bill & Melinda Gates Foundation (B&MGF is the largest transparently operated Private foundation in the world founded by Bill and Melinda [18]
Despite its enormous wealth, the Ingka Foundation does very little charitable giving. Etymology The word "charity" entered the English language through the Old French word " charité " which was derived from the Detailed information about its grantmaking is unavailable, as foundations in the Netherlands are not required to publish their records. But IKEA has reported that in 2004-2005, the Ingka Foundation's donations were concentrated on the Lund Institute of Technology in Sweden, and the Lund Institute reported the receipt of $1. LTH redirects here For the single by Lostprophets, see Last Train Home. 7 million grants from the foundation during both of those years. By way of comparison, the Gates Foundation made gifts of more than $1. 5 billion in 2005. [18].
Notwithstanding the Ingka Foundation's lack of concerted philanthropic activity, IKEA is involved in several international charitable causes, particularly in partnership with UNICEF. The United Nations Children's Fund (or UNICEF) was created by the United Nations General Assembly on December 11, 1946 These include:
IKEA also supports American Forests to restore forests and reduce pollution. American Forests is a non-profit conservation organization in the United States that promotes healthy forests and urban tree planting [22][23]
In 1990, IKEA invited Karl-Henrik Robèrt, founder of The Natural Step, to address its board of directors. Karl-Henrik Robèrt, MD PhD is one of Sweden's leading Cancer scientists and a key figure in the worldwide Sustainability movement The Natural Step is a nonprofit organization founded in Sweden in 1989 by Swedish scientist Karl-Henrik Robèrt. Robert's system conditions for sustainability provided a strategic approach to improving the company's environmental performance. A Strategy is a long term plan of action designed to achieve a particular goal, most often "winning This led to the development of an Environmental Action Plan, which was adopted in 1992. The plan focused on structural change, allowing IKEA to "maximize the impact of resources invested and reduce the energy necessary to address isolated issues. "[3] The environmental measures taken, include the following:
More recently, IKEA has begun charging $1 for each plastic bag, while offering a paper bag or no bag for no extra cost. The IKEA restaurants also only offer reusable plates, knives, forks, spoons, etc. Most stores only offer paper plates and plastic knives, forks, and spoons.
IKEA's goals of sustainability and environmental design in their merchandise have sometimes been at odds with the challenges that the impact a new IKEA store can have on a community.
Some criticisms of IKEA:
IKEA ran a commercial widely thought to be the first commercial featuring a gay couple. It aired only once, in 1994. [41] IKEA has run other commercials targeting the gay community as well as a commercial featuring a transgendered woman. Transgender (trænzˈdʒɛndɚ from ( Latin) derivatives [42]
They recently paired up with the makers of popular video game The Sims 2 to make a stuff pack called The Sims 2 IKEA Home Stuff. The Sims 2 is a strategic life simulation Computer game developed by Maxis and published by Electronic Stuff packs are minor Expansion packs for The Sims 2 that add new items clothing and furniture to the game without implementing any significant The game features many items that you could find in IKEA and it is due to be released on June 24, 2008 in North America and June 26, 2008 in Europe. Events 972 - Battle of Cedynia, the first documented victory of Polish forces takes place 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common Events 363 - Roman Emperor Julian is killed during the retreat from the Sassanid Empire. 2008 ( MMVIII) is the current year in accordance with the Gregorian calendar, a Leap year that started on Tuesday of the Common It is the second stuff pack with a major brand, the first being The Sims 2 H&M Fashion Stuff
IKEA was named one of the 100 Best Companies for Working Mothers in 2004 and 2005 by Working Mothers magazine. Stuff packs are minor Expansion packs for The Sims 2 that add new items clothing and furniture to the game without implementing any significant It ranked 96 in Fortune's 100 Best Companies to Work For in 2006 and, in 2007, was recognized as one of Canada's Top 100 Employers published in Maclean's magazine. Canada's Top 100 Employers is an annual competition that recognizes the best places in Canada to work Maclean's is a Canadian weekly News magazine, reporting on Canadian issues such as politics pop culture and current events [43]