IKEA: At a crossroad of success in Russia
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
IKEA entered the Russian market in 1999 with the primary aim of securing its global supplies for the near future and turning Russia into a global supplier for company’s products in the Long-run. Russia has the potential to offer a number of opportunities due to the country’s large amount of raw material and skilled labour. However a major challenge is the poor quality among Russian suppliers, which is hampering the productivity, efficiency in production and not least quality. Other difficulties include cultural value differences, lack of employee involvement and incompatibility of organizational cultures. In order to answer to these challenges IKEA tries to implement total quality management (TQM) in Russia. The methods that IKEA uses in the process include all forms of training, education and financial support. The reception of the new methods has been very varied and some suppliers seem to adjust to the new methods better than others. Even though IKEA tries to be involved in the supplier development process there seems to be a lack of understanding and readiness regarding to the new methods. Unless IKEA does not efficiently measure the reasons why there are lacks when implementing new methods to Russian it might be possible that the aim has been too ambitious
Place, publisher, year, edition, pages
Uppsala: Företagsekonomiska institutionen , 2005. , 37 p.
IdentifiersURN: urn:nbn:se:uu:diva-7600OAI: oai:DiVA.org:uu-7600DiVA: diva2:131254