Reference no: EM133949765

Assignment:

Communication that Transcends Cultures at IKEA

IKEA is a Swedish-founded multinational company that designs and sells furniture, appliances, and home accessories. It has been the world's largest furniture retailer since 2008. The company was founded in Sweden in 1943. It grew slowly and intentionally but over time it became an industry giant. Today IKEA has stores in over 50 countries, including China and India where other big box retailers have failed. IKEA earns billions of dollars globally in annual operating profit. It also regularly appears on Fortune's coveted Great Places to Work and Best Employers for New Grads lists.

IKEA even keeps its products' Swedish names consistent across countries. The company's founder was dyslexic, so he found it easier to make sense of familiar names rather than product codes. Product names range from Swedish islands to first names to Norwegian cities. Keeping these consistent ensures product names don't get lost in translation between markets.

In 2012, IKEA hired a new head of design, Marcus Engman, who was tasked with revamping its product development and getting more creative in the process. He did so by improving communication between divisions and communicating more transparently with consumers to help them reframe their perceptions of the brand. Although Engman left IKEA in 2018 to start his own consulting agency, his efforts have left a lasting impact on the organization.

This transparency extends to the internal company culture, as well. The company's Dublin store hosts an all-hands "huddle" in the store's restaurant every morning before the store opens. This is an opportunity for management to share the previous day's sales results and delegate responsibilities for the day, and for all employees to share store news with each other.

Even IKEA's senior executives understand the value of strong communication. Michael Ward, president of IKEA Canada, has strong storytelling skills and is able to communicate a strong vision for his employees as well as for the business. He takes his senior management team's diverse opinions and synthesizes them into a strategy. In particular, he is known for looking out for team members in meetings who are quiet and appear to be deep in thought. He will ask them directly about what they are thinking to signal to them that he is interested in their perspectives, no matter how outlandish they may seem. This helps drive more productive conversations during meetings and encourages transparent communication between team members.

Questions about the reading

1-Does it surprise you that IKEA has been successful in so many countries? Do you think its standardized communication has contributed to its success? Why or why not?

2-How might a policy of transparency with consumers positively impact an organization? Are there any potential downsides to this approach?

3-What are some ways in which internal organizational communication might impact external marketing and vice versa? Do you see this being the case with IKEA?

4-Open and clear communication is a high priority for IKEA and feedback from employees of all levels is encouraged. How would you feel about working at an organization like this? Would you feel comfortable speaking your mind?

5- If you were a senior executive at a large multinational group, such as IKEA, what communication styles would you leverage to ensure your company's success? Explain.