what are the key leadership lessons provided by kamprad

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Reference no: EM133876976

Case Study

Ingvar Kamprad-Wealthy Man, Frugal Man, Entrepreneur Extraordinaire

Although octogenarian Ingvar Kamprad, the founder of Swedish-based IKEA, is one of the wealthiest individuals in the world, he nonetheless lives quite frugally. Kamprad avoids wearing suits, flies economy class, takes the subway to work, drives a ten-year-old Volvo and frequents inexpensive restaurants.' "It has long been rumored in Sweden that when his self-discipline fails and he drinks an overpriced Coke out of a hotel minibar, he will go to a grocery store to buy a replacement.

Kamprad was "born in Smaland in the south of Sweden a region known as home to many entrepreneurs and hard-working people, who are adept at using efficiently what ... limited resources they have.?'i Kamprad developed an entrepreneurial spirit in his youth. As a youngster, Kamprad rode his bicycle throughout the neighborhood, selling matches, pens, and Christmas cards to the local residents.' Then in 1943 when he was only seventeen years old, Kamprad used a cash gift from his father to form a company called IKEA. The name IKEA was derived from Ingvar Kamprad's initials plus the first letters of the farm and village where he grew up (Elmtaryd and Agunnaryd).'

Initially, IKEA was a catalog company that sold pens, picture frames, wallets, and other bargain goods. "Kamprad used his village's milk van to deliver his products when he first started the business. In 1951, IKEA began selling furniture made by local carpenters; six years later Kamprad opened the first IKEA store in Sweden. In 1985 the first U.S. IKEA-which measured three football fields long opened in a Philadelphia suburb called Plymouth Meeting."vi By 2010, IKEA had grown to 316 stores around the world with 699 million visitors, in-person and online. Vi IKEA "has stores in thirty-three countries, while continuing to expand markets in China and Russia."vili

As stated on the company's website, "[the IKEA vision is to create a better everyday life for ... many people. We make this possible by offering a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them"x and to do so without compromising quality.* "Consistent with the Swedish lifestyle, the IKEA product range is functional, attractive, child-friendly and family-centered, covering the needs of all family members." "IKEA uses natural materials such as pale wood, natural textiles (linen and cotton), glass, clay and untreated surfaces. The natural character of these products has bestowed on them a universal utilitarian appeal."ii

A signature characteristic of the company is that "all IKEA products from furniture to the now famous mobile kitchens could be packed in flat, stackable boxes that could be mailed or At different times throughout his career, Kamprad has become reflective about what he has accomplished and he proceeded to jot down bits of his management philosophy. One philosophical gem is: "By always asking why we are doing this or that, we can find new paths. Hire best assignment help & experienced tutors now!

By refusing to accept a pattern simply because it is well established, we make progress. We dare to do it a different way! Not just in large matters, but in solving small everyday problems, too."xvi Another of his lofty pronouncements is: "Wasting resources is 'a mortal sin' "xvii Kamprad also promises "a better life for many."xxvili

From the mistakes and the successes, what lessons should others current leaders or those aspiring to become leaders take away from Ingvar Kamprad's experiences?

Discussion Questions

In what ways is Ingvar Kamprad a manager? In what ways is he a leader?
Describe the nature of followership that Kamprad seems to have encouraged at IKEA.
Using the Leadership Grid and its underlying leader behaviors of "concern for results" and "concern for people," explain the leadership orientation of Ingvar Kamprad.
Use the concepts of transactional, transformational, charismatic, and authentic leaders to describe the leadership of Ingvar Kamprad
What are the key leadership lessons provided by Kamprad's experiences?
What skills would you personally need to develop or refine to become a leader like Kamprad? What could you do to develop or refine these skills?

Reference no: EM133876976

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