IKEA International: Business Strategy, Corporate Culture, and Global Staffing

Overview of IKEA International

IKEA International is a renowned global wholesale company specializing in furniture design and selling. The company was founded on 28^th July 1943 by a Swedish named Ingvar Kamprad (Spanke, 2020). IKEA employs more than 200000 employees and operates over 300 stores globally (Spanke, 2020). The stores are distributed in more than 50 countries, such as the United States, China, and the United Kingdom (Spanke, 2020).

Their products include pieces of furniture that are designed and ready to assemble, kitchen appliances, and home décor that emphasizes not only affordability but also functionality (Spanke, 2020). Moreover, the company is also recognized for its flat-pack furniture design. The design is specifically advantageous in that it lowers transportation costs and eases the assembly of the products at home.

Apart from the retail business, the company is also a strong advocate of sustainability and social responsibility. To achieve this, the company has come up with a set of ambitious goals to ensure that it becomes not only carbon neutral by 2030 but also that it uses only renewable and recycled materials in the manufacture of its products (Spanke, 2020). Currently, IKEA has emerged as one of the most reputable, recognizable, and successful firms in the furniture and retail industry because of its affordable, functional, and stylish products.

IKEA International Business Strategy

The company’s business strategy revolves around several elements that are critical in its attempts to gain a competitive edge in the dynamic retail business. These elements include IKEA’s unique business model, its product design, and the company’s efforts toward sustainability.

Business Model

IKEA’s International business framework is founded on the principle of offering furniture products and home accessories that are not just well-designed and functional but also affordable. To ensure that these products meet the required standards, the company designs its own products and in other cases, it partners with well-renowned suppliers to manufacture. The strategy of owning its product design and the whole manufacturing process is advantageous to the company, in that it allows for cost control and thus offers lower prices to its customers.

Product Design

Globally, IKEA’s products are designed to be distinctive, mainly focusing on simplicity, functionality, and affordability. Specifically, these products are engineered to ensure easy assembly, transportation, and storage. Moreover, they are frequently manufactured from environmentally friendly materials. The designers at the company work in collaboration with suppliers with the goal of creating products that cater to the diverse requirements of clients all over the world. This involves taking into account factors such as climate, cultural preferences, and lifestyle considerations in their design process.

Sustainability Efforts

In recent years, IKEA has been strongly advocating for sustainability measures. As such, the company has established a series of bold objectives to guarantee that it reduces its environmental impact. To achieve these goals, the company first aims to become climate-positive by 2030. This implies that by then, IKEA plans to lower the amount of greenhouse gas emissions. IKEA is also actively investing in renewable energy, utilizing sustainable materials in its products, and taking steps to minimize waste and carbon emissions throughout its supply chain.

In addition to IKEA’s business model, product design, and sustainability efforts, the company’s business approach is centered on providing an exceptional client experience. Their stores are thoughtfully designed to be welcoming and accessible. Moreover, they are fitted with product displays that showcase how products can be used in diverse settings. Finally, for convenience purposes to their customers, IKEA offers a range of services, such as home delivery, installation, and kitchen planning.

IKEA International Corporate Culture

Corporate culture is a set of shared values, beliefs, and behaviors of a company’s employees expressing their social interactions and work environment. IKEA has a very unique corporate culture originating from its Swedish founder. The culture is deeply rooted in the day-to-day business operations of the organization. IKEA’s corporate culture is established on the values of simplicity, cost consciousness, and respect for all. These values have played a significant role in shaping the organization’s overall business strategy.

Simplicity

At the center of the organization’s corporate culture is simplicity. In IKEA, simplicity is reflected in its products, processes, and overall business strategy and approach. The company’s approach to simplicity is based on the idea that making things simple makes life better for customers, co-workers, and the environment. IKEA has come up with a highly streamlined supply chain and logistics system, which allows it to offer affordable prices without sacrificing quality. The stores are designed to be very simple and efficient. In addition, the clear layout makes it easy for customers to navigate and find what they need.

Focus on Cost-Consciousness

In addition to simplicity, the company also focuses on providing cost-effective products that everyone can afford. For instance, the use of the flat-pack system by IKEA in its product design has led to a significant reduction in both transportation and storage costs. This culture is further reinforced by its emphasis on efficiency and continuous improvement. The company always works with employees to discover areas where costs can be minimized and to identify methods to streamline the whole process.

Respect for Individuals

IKEA values not only diversity but also inclusion, and as such, it is committed to creating a safe and inclusive work environment for all through employee development and training. To achieve this, the company has invested heavily in training and development initiatives to equip employees with the necessary skills to succeed in the ever-changing business market.

Strategic Importance of the Cashier Position at IKEA International

The cashier job at IKEA International holds great strategic importance for the company. According to Phillips and Gully (2015), “strategic staffing requires that organizations identify and address the staffing implications of their business plans and strategies” (p. 5). Among key business strategies for IKEA is to provide a unique customer experience that focuses on quality and affordability. Thus, this strategy is crucial to the company’s success, and the cashier position plays a critical role in delivering this experience to customers.

As the final point of contact for customers, the cashier is responsible for processing transactions and ensuring customers have a positive experience. This requires not only strong technical skills but also excellent customer service. As noted by Phillips and Gully (2015), “the importance of customer service has increased over time as consumers have become more informed and have higher expectations” (p. 49). Customers expect a seamless and enjoyable shopping experience, and therefore, positive interaction with the cashier can leave a lasting impression and increase the likelihood of repeat business.

Moreover, the job is also critical in terms of operational efficiency. Phillips and Gully (2015) highlight that “staffing levels can affect productivity and customer service, and can also impact the ability of the organization to achieve its strategic goals” (p. 6). Understaffing can lead to long wait times and frustrated customers. On the other hand, overstaffing can increase labor costs and reduce profitability. As such, IKEA needs to carefully manage the staffing levels of its cashier positions to ensure optimal efficiency and customer service.

The Importance of Improving IKEA’s Staffing

Improving IKEA’s staffing is crucial for the company’s success and sustainability in a rapidly changing global market. Staffing involves the acquisition, deployment, and retention of an organization’s workforce to achieve its strategic goals (Phillips & Gully, 2015). Therefore, the process is essential for IKEA to achieve its objectives and compete effectively in the global market.

First, staffing helps to ensure that the company can effectively adapt to cultural differences and work practices of each new international market. According to Phillips and Gully (2015), cultural fit is a critical component of staffing strategy. It is important to have employees who can understand and adapt to the cultural norms and practices of the local market (Phillips & Gully, 2015). For IKEA, hiring local employees who deeply understand the local culture can help the company avoid potential misunderstandings and conflicts and, thus, foster positive relationships with local stakeholders.

Secondly, the process ensures the company is equipped with the required skills and competencies to thrive in any market. As stated by Malik (2018), it is important to have workers with the right skills and knowledge to prosper in different cultural contexts. This implies that IKEA needs to recruit employees with a wide range of skills, including language skills, cultural competency, and knowledge of local markets. Moreover, the company needs to provide training and development opportunities for its employees to help them develop the skills they need to succeed.

Finally, improving staffing at IKEA ensures that the company can maintain its competitive advantage in the global market. Having a diverse and global workforce can help companies innovate and adapt to changing market conditions (Ratten, 2020). By employing workers from different countries and cultures, IKEA can gain insights into new markets and develop innovative solutions to meet customers’ needs in other parts of the world. A diverse workforce can help the company improve its decision-making processes, as employees bring different perspectives and ideas.

The Implications of Having Low Versus High Performance in The Job

Employees’ job performance is a key factor in determining the success of an organization. This is because an employee’s performance can have significant implications for an organization’s productivity, profitability, and competitive position. Low performance in a cashier’s job negatively affects the organization. According to Phillips and Gully (2015), low performance reduces productivity and profitability.

In the case of a cashier, low performance can lead to long queues, dissatisfied customers, and loss of sales revenue. As stated by Deepak and Jeyakumar (2019), customers expect fast and efficient service when shopping and long queues can drive them away from the store, resulting in a loss of income. Additionally, low performance can lead to errors, such as overcharging or undercharging customers, leading to customer complaints and tarnishing the company’s reputation.

In contrast, high performance can lead to positive outcomes for both the individual employee and the company. Phillips and Gully (2015) posit that high-performing employees are “those who exceed the expected levels of performance for their job” (p. 47). One implication of high performance is increased customer satisfaction. Research has shown that employee performance is significantly related to customer satisfaction (Pakurár et al., 2019). Cashiers who provide excellent customer service, such as being friendly, efficient, and accurate in their transactions, can result in contented clients who are more likely to return and refer the company to others.

Recommendations On Future Recruitment

To execute IKEA’s business strategy successfully, future hires for the Cashier position must be able to perform several vital tasks. First, they must be able to provide excellent customer service to its customers. As the face of the company, cashiers must be friendly, helpful, and knowledgeable about the products and services that IKEA offers. Furthermore, candidates should also be able to work in a rapid and demanding environment and be comfortable handling cash transactions and working with technology such as point-of-sale systems.

Moreover, future employees must be aligned with IKEA’s corporate culture and values. Specifically, they must be committed to sustainability, innovation, and simplicity. They must also be able to work collaboratively with other employees to achieve the company’s goals. Finally, accuracy and efficiency in cash handling are essential skills for this position. Candidates must be able to quickly and accurately count cash and perform transactions while following proper cash-handling procedures to minimize the risk of errors or fraud.

Strategic Staffing Decisions

Core or Flexible Workforce

Core Workforce

The cashier job is critical to the company’s retail operations in providing a positive customer experience. Having a core workforce of cashiers who are trained and experienced in the job will help to ensure consistency in service and minimize disruptions to operations.

Internal or External Hiring

A Combination of Internal and External Hiring

Internal hiring can be beneficial as it provides opportunities for career development and advancement for existing employees. External hiring, on the other hand, can bring fresh perspectives and new skills to the organization.

Hiring for or Training and Developing Needed Skills

A Combination of Hiring for Needed Skills and Training and Development

It is crucial to hire Cashiers who already possess the necessary skills for the job.

However, training and development can also help enhance these skills and ensure that all cashiers perform at the same level.

Replacing or Retaining Talent

Retaining Talent

Retaining talented cashiers reduces turnover, which can be costly and disruptive to operations. Additionally, it can help to maintain consistency in service delivery and provide a positive customer experience.

Level of Skills Needed

Moderate

Cashiers must not only have strong customer service skills, but also they must be able to work efficiently and accurately with cash and credit card transactions. Whereas these skills are vital, they can be learned through training and development.

Proactive or Reactive Staffing

Proactive Staffing

Proactive staffing means planning to ensure that there are enough cashiers available to meet demand rather than waiting until there is a shortage and then trying to hire quickly. This can help ensure that operations run smoothly and customers have a positive experience.

Job Focus

The cashier should focus on providing excellent customer service and ensuring accurate and efficient transactions. Moreover, they should be knowledgeable about the company’s sustainability efforts and able to communicate these to the customers. The focus should be on providing a positive client experience and contributing to the overall success of retail operations.

Investment in Cost Staffing

Investment

The quality of the cashier’s performance and their ability to provide excellent customer service can significantly impact the success of retail operations. Investing in staffing for the job can attract and retain talented individuals with the necessary skills and qualities to perform effectively, leading to enhanced customer contentment and improved sales.

Centralized or Decentralized Staffing

Centralized Staffing

Centralized staffing refers to having an integrated hiring and training process for cashiers, which can help to ensure consistency in service and operations across all store locations. A centralized approach can also streamline the hiring and training process and reduce costs associated with duplication of efforts.

Job Analysis of Cashier Position at IKEA International Company

Job Title

Cashier

Job Duties

1. Process customer purchases and returns accurately and efficiently.
2. Handle cash, credit, and debit transactions using a point-of-sale system.
3. Ensure the cash register is balanced at the end of each shift.
4. Maintain, clean, and organize the checkout area.
5. Provide excellent customer service and resolve customer complaints.

Knowledge, Skills, and Abilities (KSAs) Required

1. Strong mathematical skills.
2. Good communication skills.
3. Good organizational skills.
4. Knowledge of point-of-sale systems.
5. Ability to work in a fast-paced environment and handle multiple tasks at the same time.
6. Ability to work in a team.

Education and Experience Requirements

1. High school diploma or equivalent.
2. Previous experience in cash handling and customer service is an added advantage.

As for the future of the job, the role of cashiers may change in the near future, owing to technological advancements and the rise of self-checkout systems. Cashiers may be required to learn how to use and maintain new technologies and assist customers with self-checkout.

Job Requirements Matrix

Job Reward Matrix

Labor Supply

The relevant labor markets for a cashier position at IKEA are the retail and customer service industries, the retail industry being one of the largest employers in the world. Moreover, with the rise of e-commerce and online shopping, there is an increased need for customer service positions to handle inquiries, orders, and returns. As a result, the future labor supply for this position will likely remain stable. This is because the demand for retail and customer service positions is consistent across various industries. However, advancements in technology, such as self-checkout machines, may reduce the need for cashiers in the future. This trend is already being seen in some retail establishments. Nonetheless, IKEA may continue to rely on human cashiers due to the complexity of its product offerings and its focus on providing a personalized shopping experience.

The timeline for the job can vary depending on the location and the number of available jobs. However, generally, the timeline can be broken down into the following stages:

1. Job Posting either internally, externally, or both.
2. Screening and interviewing to identify the most qualified applicants.
3. Selection and offer: The company selects a candidate and extends an offer, including compensation and benefits.
4. Background check and onboarding: IKEA conducts a background check and starts the onboarding process. The process involves training on cash handling procedures and customer service.
5. New Hire Begins Work: Those hired start their job.

Generally, the whole process from job posting to beginning the job can vary from a few weeks to months depending on various factors, including the number of applicants and the complexity of the training process.

Sourcing Plan

Job Boards

Posting job openings on popular job boards such as Glassdoor, Indeed, and LinkedIn can attract many potential candidates. This is because these platforms allow job seekers to search for relevant job openings and apply directly through them. However, while these platforms can effectively attract candidates actively seeking employment, they may not reach passive candidates not actively looking for a job. Additionally, these job boards can be crowded, making it challenging for the company to stand out.

Social Media

The company can make use of its social media channels, like Facebook, to promote job openings and thus attract potential candidates. These channels allow the company to reach a wider audience and engage with potential candidates directly. Although social media has the ability to target a larger audience, it may not be the most suitable means for drawing in potential candidates who are not currently following the company’s social media accounts.

Recommendations

Staffing Agencies

Collaborating with staffing agencies who specialize in retail or customer service roles can help IKEA International access a pool of pre-screened and qualified candidates. These agencies can help with sourcing, screening, and interviewing candidates, saving the company time and resources.

Employee Retention Programs

In addition to staffing agencies, creating employee retention programs that focus on developing and promoting from within can help IKEA retain its existing employees and reduce turnover. Employees are more likely to stay with the company by offering career growth and development opportunities, reducing the need for external hiring.

Alignment Between Existing Recruiting Practices and Staffing Needs

IKEA International’s current recruiting practices for cashier positions align reasonably well with the staffing needs of the job. However, there are some areas for improvement, including attracting more diverse candidates, improving the candidate experience, and better-assessing candidates’ soft skills. To address these areas for improvement, the following alternative recommendations would be viable.

Recruiting Strategies and Methods

Targeted Recruitment

Targeted recruitment involves identifying specific groups of candidates and tailoring recruiting efforts to appeal to their unique interests and needs. For example, IKEA could target recruitment efforts towards women, who often make up the majority of cashier positions, and promote their commitment to diversity and inclusion.

Skills-Based Assessments

The company can use skills-based assessment techniques to identify candidates with the required soft skills for the cashier position, such as customer service, instead of relying only on conventional methods such as resumes and interviews.

Target Applicants

These are people with experience in customer service, cash handling, and basic computer skills. The ideal candidates will have excellent communication and interpersonal skills, a friendly and positive attitude, and the ability to work effectively in a fast-paced environment. Additionally, IKEA International should aim to attract a diverse pool of candidates to promote an inclusive and welcoming workplace.

Appropriate Recruiters

Recruiters knowledgeable about customer service and retail are the most appropriate for recruiting for the cashier job. These recruiters should have a strong understanding of the necessary soft skills and should be able to assess the candidates’ customer service and communication abilities.

Training for Recruiters

Recruiters at IKEA International should receive training on the company’s values and culture and the specific requirements of the cashier position. This training should include guidance on identifying candidates with the necessary soft skills and effective methods for assessing those skills during recruiting.

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References

Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.

Phillips, J. M., & Gully, S. M. (2015). Strategic staffing. London: Pearson.

Pakurár, M., Haddad, H., Nagy, J., Popp, J., & Oláh, J. (2019). The service quality dimensions that affect customer satisfaction in the Jordanian banking sector. Sustainability, 11(4), 1113. Web.

Malik, R. S. (2018). Educational challenges in 21st century and sustainable development. Journal of Sustainable Development Education and Research, 2(1), 9-20. Web.

Ratten, V. (2020). Coronavirus and international business: An entrepreneurial ecosystem perspective. Thunderbird International Business Review, 62(5), 629-634. Web.

Spanke, M. (2020). Retail isn’t dead: Innovative strategies for brick and mortar retail success. Springer Nature. Web.