IST 301 FINAL EXAM CQ: IKEA
UPDATED QUESTIONS WITH 100%
CORRECT ANSWERS | VERIFIED
SOLUTIONS
Background of IKEA inc - Answer- IKEA was first a mail order company started by
Ingvar Kamprad in Sweden (1948)
- Company started out by selling pens, lighters, and binders bought from local stores
and advertised in a small newsletter.
- Kamprad added furniture in 1948.
- First store was opened in 1951 about 7 hours from Stockholm
- Began selling self-assembled furniture in 1953
decreased transportation and storage costs.
- Sales doubled from $3 million to $6 million between 1953 and 1955
Managing Suppliers - Answer- As IKEA began to flourish, larger local furniture stores
felt threatened with their new concepts.
- Looked abroad for new resources
- IKEA adopted principle of not owning its means of production
- Constant quest to lower prices
As IKEA began to flourish, larger local furniture stores felt threatened with their new
concepts... - AnswerThey stopped IKEA from exhibiting at trading fairs and
manufacturers selling to them.
Looked abroad for new resources... - AnswerPoland became IKEA's largest low-cost
source.
principle of not owning its means of production - Answer- develop close ties by
supporting its suppliers in a long-term relationship
- Don't buy products, buy means of production
Growing Retail - Answer- IKEA expanded abroad to 26 different countries with a total
of 114 stores by 1994.
- IKEA's concept was evolved and formalized.
- By mid 1990's, IKEA was world's largest specialized furniture retailer.
- 24 trading services offices monitored production, tested new product ideas,
negotiated prices and checked quality.
UPDATED QUESTIONS WITH 100%
CORRECT ANSWERS | VERIFIED
SOLUTIONS
Background of IKEA inc - Answer- IKEA was first a mail order company started by
Ingvar Kamprad in Sweden (1948)
- Company started out by selling pens, lighters, and binders bought from local stores
and advertised in a small newsletter.
- Kamprad added furniture in 1948.
- First store was opened in 1951 about 7 hours from Stockholm
- Began selling self-assembled furniture in 1953
decreased transportation and storage costs.
- Sales doubled from $3 million to $6 million between 1953 and 1955
Managing Suppliers - Answer- As IKEA began to flourish, larger local furniture stores
felt threatened with their new concepts.
- Looked abroad for new resources
- IKEA adopted principle of not owning its means of production
- Constant quest to lower prices
As IKEA began to flourish, larger local furniture stores felt threatened with their new
concepts... - AnswerThey stopped IKEA from exhibiting at trading fairs and
manufacturers selling to them.
Looked abroad for new resources... - AnswerPoland became IKEA's largest low-cost
source.
principle of not owning its means of production - Answer- develop close ties by
supporting its suppliers in a long-term relationship
- Don't buy products, buy means of production
Growing Retail - Answer- IKEA expanded abroad to 26 different countries with a total
of 114 stores by 1994.
- IKEA's concept was evolved and formalized.
- By mid 1990's, IKEA was world's largest specialized furniture retailer.
- 24 trading services offices monitored production, tested new product ideas,
negotiated prices and checked quality.
