How would you describe IKEA’S image?

How would you describe IKEA’S image?

November 17, 2012
Leiden, Netherlands – It is tough to believe, though it is true, but IKEA with their
cheap and easy to assemble furniture is actually one of the biggest companies in the
world, generating billions of dollars in revenues and profits every year, tribute in many
ways to the model they have essentially designed.
IKEA is also one of those great success stories, having been founded by a 17-year-old
during the war in Europe, the company has changed the way businesses are run and
changed lives in demonstrable ways, a story that if it were committed to film or a novel
would be hard to believe but it is true.
That success has made the man behind the company, Ingvar Kamprad, one of the
wealthiest men in the world and just about everyone involved with the company a great
success. That success, though, is not based simply on their business model or their
furniture but also on the backs of their thousands of employees around the world. Some
of whom the company is now apologizing to for making them into slaves for years and
years in East Germany. The apology is result of being caught, as such things usually
are.
“We deeply regret that this could happen. Using political prisoners in production has
never been accepted within the IKEA Group,” said a spokesperson for the company who
apparently forgot what it was she was actually talking about before making the
statement.
The company apparently used forced labor, slaves, at the behest of the Stasi in
Eastern Europe for upwards of thirty years.
Those workers were forced to manufacture the furniture but of course, never received
the benefits of 13.3

the easy-to-assemble fruits of their labors.
“Many companies have secrets like this, some that aren’t so secret in fact, and so I
don’t think that this revelation will really matter all that much in the big picture
especially since the company seems to be working with groups investigating this
whole thing which is their way of making up for it, presumably without paying very
much money to compensate the victims. Luckily the most of those people went
missing years ago anyways so they will be fine anyway,” said Scrape TV Business
analyst Ken Green. “They have to participate because being associated with slave
labor is really something that most people frown upon when they hear about it. It’s
fine if they don’t hear about but when they do, whoa boy it’s a big deal then.”
IKEA did not directly enslave the slaves but hired a company that used slaves which
worked as a buffer.
“Obviously much of IKEA’s current success is based on this early success which of
course was clearly built on the backs of slaves and so anything they have now is
based on that, well, some of it. I mean it’s not like all their furniture was built by
slaves, just significant chunks but still, slaves are slaves,” continued Green. “I’m sure
they are very sorry about all of this especially since they have been caught doing it,
at least in the past. That’s always a good path to regret, getting caught, and clearly,
it’s worked out well for IKEA and all those people who they helped make go
missing.”
IKEA has put money into the investigation but way less than they would have had to
pay victims.
Please check this You Tube out on IKEA and using prisoners to manufacture
their products.
Ikea Accused of using …
http://www.youtube.com/watch?v=atC11IiYirw 13.4
Name: _______________________________________________
YOU ARE THE SPIN DOCTOR IN THIS GRADED TASK
Part A of the graded task (25 Marks)
A. Answer the following questions relating to IKEA
Knowledge

a. How would you
describe IKEA’S
image?
b. Identify the crisis at
IKEA?

Comprehension a. Who represented
IKEA in this media
release?
b. Who is IKEA’S
PUBLIC? (2 Internal
and 2 external public)
Explain why they have
an interest in the
business.
c. How did IKEA’s
management respond to
those affected by the
crisis?

Application

a. What is Ikea’s
Objectives?
(research this)
b. How would this crisis
impact on IKEA’s
business objectives?
c. Identify and explain 2
performance indicators
that IKEA could use to
measure whether this
negative publicity has
impacted on the
business.
d. What impact will this
crisis have on their
publics? Be specific
with the different
stakeholders/publics
identified above.
Analysis Read the article
below on the
Horse Meatball
scandal that Ikea
was involved in.
a. Compare the
way Ikea handled
these 2 crises.
What are the
similarities and
differences with
how Ikea
responded to
these crises?
(Identify at least 2
similarities and 2
differences)
b. Justify your
answer.

Evaluate

a. Evaluate
whether IKEA
have managed

these crises
effectively.
b. Make at least
one suggestion
how Ikea could
improve its PR
policy.
Refer to the text
Page 357. Use the
criteria/rubric
below to support
your evaluation.

Justify

a. Why you
think/or don’t
think IKEA were
ethically and
socially
responsible

ANSWER.

PAPER DETAILS
Academic LevelCollege (1-2 years: Freshmen, Sophomore)
Subject AreaBusiness Studies
Paper Type Coursework
Number of Pages1 Page(s)/550 words
Sources0
Paper FormatMLA
SpacingSingle spaced
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