Question

Strategic Management Edition 4. - Frank T. Rothaermel

IKEA - Chapter 10

Ingvar Kamprad’s influence over IKEA may have even been stronger than that of Sam Walton over Walmart because IKEA is a privately held company, whereas Walmart is a public company (since 1970). Walmart entered a period of difficulties after Sam Walton stepped down (in 1988 at age 70). Do you think IKEA had similar difficulties after it endured a similar leadership transition in 2013, when Ingvar Kamprad stepped down? Why or why not?

Answer 1

Answer:

IK could be a company that deals within the business of providing and producing inexpensive furnishings to the purchasers. IK provides smart quality furnishings at a coffee and reasonable price. In spite of giving merchandise at a low price, IK is eminent in earning smart profits with its every sale. IK is spreading its wings in international markets. It’s been targeting the North American country, North America, and developing nations like China and Russia to become a world complete.

IK has been eminent in its business endeavor thanks to the actual fact that it's been operating underneath the superior leadership of its founder, Mr. IK. Underneath his leadership, the corporate moon-faced many ups and downs. Mr. IK has churned all the difficulties together with his management and decision-making skills. It’s aforesaid that a company's operations and profits would cut back once it loses its sturdy plus, business executive or a founder with eminent social control skills. For instance, once upon a time Company, Washington could not operate its day to day activities well once its founder, Mr. SM turned down together with his retirement. Business observers say that this might conjointly happen to IK once a man. IK leaves his leadership position within the company.

A company's success would rely upon its management. A decent founding father of the corporate ought to take the responsibility to exchange his or her position with new appropriate leadership. He or she ought to assure the corporate to work successfully underneath the new leader before his retirement. Thus, Company IK's founder ought to check that that the corporate reaches heights even once his retirement to forestall the results that the corporate Washington moon-faced commutation a brand new capable leader once its founder's retirement.