Mission Statement

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Mission Statement Powered By Docstoc
					           CAT 302 Customer Service Model Group Project
                                        August 20, 2008
              Kimberly Barnes, Melissa Buck, Sean Beard

Table of Contents
  Part I-Ikea: The Company

  Part II-Ikea: The Service Model

  Part III-Ikea: Developing the Brand

           The Company

IKEA Quick Facts
  Founded by Ingvar Kamprad
  1943: beginning of operations (primarily a mail-order business)
  1958: 1st store opened in Sweden
  1985: 1st store opened in U.S.
  North American Headquarters located in Conshohocken, PA
  Currently operates close to 300 stores in 35 countries around the
   world; 29 stores in U.S.
  118,000: total # of co-workers in all IKEA stores for y/e 2007;
   16,450 in U.S. (14%)
  19.8 billion euros: total sales for all IKEA stores y/e 2007; U.S.
   accounted for 10% of those sales

“A simple H.R. idea.”
     “…to give down-to-earth, straightforward people the
     opportunity to grow, both as individuals and in their
     professional roles, so that together we are strongly
     committed to creating a better everyday life for
     ourselves and our customers.”

H.R. cont.
     “As you will have noticed, those who work at IKEA are
     referred to as “co-workers” and not “employees”. This
     may seem a little odd to begin with, but as most people
     quickly come to understand, our terminology is
     symbolic of a special mindset - one which says we all
     have a contribution to make to the success of the
     company, and that every single role is important in its
     own way.”

What we expect vs. what we offer

     “Ikea co-workers enjoy many advantages and
     opportunities from working in such a free and open
     environment. But all freedoms are counter-balanced
     with expectations.”

    Ambition
    Do your best based on abilities & experiences
    Service-oriented
    Open to improvements with a will to continually
    Challenge established patterns and make suggestions
    Not status-minded; open & straightforward in
     approach to others
    Cost-conscious
    Open & willing to try a new & challenging job

In return…
  Chance to work in a growing company with a viable business
    Opportunity to further develop your professional skills in your
     daily work
    We make it possible to choose between many different jobs
     within the company
    Enable you to work in an environment where people & team
     spirit are central values
     We offer you a job with fair and reasonable conditions
    We give you the chance to take a great responsibility following
     recognized good results, regardless of age.

A corporate culture based on
shared values.
     “At IKEA, we don’t just want to fill jobs; we want to
     partner with people. We want to recruit unique
     individuals who share our values. Co-workers are not
     restricted at IKEA; we listen and support each
     individual to identify his or her needs, ambitions and

Shared values cont.
 Here are a few examples of our shared values:
        RESPECT

IKEA Contact Information
 Human Resources Privacy Officer
 IKEA North America Services, LLC
 420 Alan Wood Rd.
 Conshohocken, PA 19428

           The Customer Service Model

Mission Statement
  Ikea's mission is to offer a wide range of home
     furnishing items of good design and function,
     excellent quality and durability, at prices so low that
     the majority of people can afford to buy them (IKEA
     1994). The company targets the customer who is
     looking for value and is willing to do a little bit of work
     serving themselves, transporting the items home and
     assembling the furniture for a better price. The typical
     Ikea customer is young low to middle income family.

         IKEA’s business philosophy and how business is done at a very
       successful organization is best described through the 4 goals of an
     IKEA Store. They give even greater insight to why customer service is so
                              good at these stores.

   1. To act as a highly efficient, and staffed sales mechanism
   2. To show home furnishings solutions full of home furnishing ideas
   3. To serve as a well qualified home furnishing specialist
   4. To provide a day out for the whole family

  Effective marketing through catalogues usually attracts the
     customer at first, what keeps customers coming back is
     good service.

  Ikea believes that a strong in-stock position in which the
     most popular style and design trends are correctly
     anticipated is crucial to keep satisfied customers. For that,
     Ikea depends on leading-edge technology.

  According to Ikea's logistics manager, "there are a lot of
     Just-In-Time concepts built into how we're trying to do
     business". Ikea has developed its own global distribution

Operations Cont.
  By utilizing control points in the distribution cycle, the
     firm is able to insure timely deliver of products to retail
     stores all over the world. Internationally, these stores range
     in size from 20,000 to 30,000 square feet in Hong Kong and
     in Singapore to 500,000 square feet in Stockholm, Sweden.
     Ikea has over 1,800 suppliers located in over 50 different

Global Strategy
  In order to maintain cost leadership in the market, internal
     production efficiencies must be greater than that of competitors.

  Under Ikea's global strategy, suppliers are usually located in low-
     cost nations, with close proximity to raw-materials and reliable
     access to distribution channels. These suppliers produce highly
     standardized products intended for the global market, which
     size provides the firm with the opportunity take the advantage of
     economies of scale factors.

  Ikea's role is not only to globally integrate operations and
     centrally design products, but also to find an effective
     combination of low cost, standardization, technology, and

       Building a brand driven experience for customers

Ikea’s mission
  Ikea seeks to deliver affordable home furnishing to its
  There are several unique aspects of Ikea’s service
        Self-service is a large part of the service model.
        Assembly is almost exclusively done by consumer.
        Controlled layout of store allows for maximum
           efficiency in delivering customer experience.
  Branded experience is ultimate goal: customers will
     be loyal to the brand.
            Developing the branded experience

 Customer experience will consist of pleasure and pain

 Branded experience is not always the result of having a
  pleasurable experience at all service points.

 A branded experience is formed by using the resources
  available to balance between pleasure and pain.

 It is important to not only listen to the voice of the
      costumer but also to focus on the areas that are important
7/1/2010 the brand.
Important-performance quadrants: balancing important attributes of customer
value and brand value to create a desirable in-store experience1

Fig 1-Listen to areas of importance                          Fig 2-Focus on areas that are
to customer                                                  important to customer and brand

            Lee, S. (2007). IKEA: A branded experience is more important than customer-centricity. Retrieved July 21,
           2008, from
 Focus on customer value through the brand
  Customers value quality furniture at low price
  Focus on quality of furniture but also the value
   furniture brings to everyday use for the customer
  Brand is tested by the ability to bring individual
   customer solutions
  Customer loyalty will be ensured by bringing a
   consistent package of quality, function, and end point

       Continuing development of the
  Ikea will need to continue to refine its service model to
   sustain success in the future
  Drivers such as technological innovation and service
   innovation will provide an even deeper brand
  Global expansion will bring new opportunities to expose
   brand to new markets
  Customers will continue to be partners in maintaining and
   developing brand through self service and creation

    Behn, J. (2001). Super model. Retrieved July 22, 2008, from

    Edvardson, B., Gustafsson, A., & Enquist, B. (2005). Challanges in new service development and value
     creation through service. Paper presented at the ISD'2005 Conference, Karlstad University Sweden.
     Retrieved from

    Ikea USA. (2008). Ikea USA: Customer service. Retrieved July 22, 2008, from stomer_s R>
    Lee, S. (2006). Ikea represents a new wave in china, a branded experience. Retrieved July 21, 2008,

    Lee, S. (2007). IKEA: A branded experience is more important than customer-centricity. Retrieved
     July 21, 2008, from

    Edvardsson, B., & Enquist, B. (2002, October). 'The IKEA Saga': How Service Culture Drives Service
     Strategy. Service Industries Journal, 22(4), 153-186. Retrieved July 21, 2008, from Business Source
     Premier database.


Description: Mission Statement document sample