Case 1
IKEA: Design and Pricing
Submitted by
Roger Manning
Prepared for
Jeff Peterson
BUSN 6110
Fall II, 2008
Webster University
10/14/2008
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Executive Summary
In the first four chapters of the textbook, IKEA was an example for operations and supply management (OSM). Operations and supply management is defined as the design operation and improvement of the systems that create and deliver the firm’s primary product and services. The IKEA case study outlined the framework IKEA uses to improve product design and consumer satisfaction.
The IKEA vision is to create a better everyday life for people. IKEA attempts to do this by offering a wide range of well-designed, functional home furnishing products at prices everyone can afford.
The IKEA Concept began when Ingvar Kamprad, an entrepreneur from southern Sweden, had an innovative idea. In Sweden, the soil is thin and poor, the people have a reputation for working hard, living frugally and making the most out of limited resources. Ingvar started his furniture business in the late 1940s, he applied the lessons he learned to the home furnishings market.
Ingvar's innovativ ...