Problems with Ikea

We have analysed the IKEA case study "Managing cultural diversity" .Our analysis of key problems, recommendations and their limitations are summarised in the following document. HEADING Key problem #1: IKEA suffers from a lack of innovation and faces the possibility of offering a very similar product base. This is due in part to the lack of fresh blood in the organisation. IKEA's policy of hiring the same genre of people leads to inhibiting diversity and innovation …

…sized disposable income in London, Chicago, Singapore or Perth. They all want quickly assembled and good-looking trendy furniture. Therefore we recommend that IKEA should capitalise on this globalisation of customer culture and appeal to them through a global uniformity campaign. They could sell the dream of the yuppie and not just the furniture. Limitation: This however may IKEA's approach to reliant on one market segment and may limit its expansion potential into less developed markets.