IKEAs Resources and Competences in Developing Competitive Advantage Essay

IKEAs Resources and Competences in Developing Competitive Advantage - Essay Example With specific references to its competencies, it is apparent that since its inception, IKEA has always shown a great concern for people and the environment. This is based on its vision which is to create a better everyday life for many people. Indeed, its concern for people and the environment enhances its proper use of resources. Thus, it endeavors to keep its cost as minimum as possible. The IKEA entrepreneurial culture is enduring. For instance, its founder Ingvar Kamprad exhibited elements of entrepreneurship early in his childhood. As a fact, entrepreneurs are usually born and/or made. This way, the environment in which IKEA’s founder was raised up in nurtured his entrepreneurial skills. The Smalanders for instance, are famed for their informality and entrepreneurial spirit. For instance, His aunt would send him large quantities of matches which he would sell in small quantities at a lucrative price. Thus, he was exposed to an entrepreneurial culture early in his life. The leadership and organizational structure of IKEA are also ideal. Peter Hogsted, the CEO is subscribed to the idea of cost-cutting and promotes informal structure within the organization. Through the Hawthorne experiments, Elton Mayo, a renowned behavioral theorist was able to affirm that work satisfaction and performance among workers is basically not economic. It is rather more contingent on working conditions and attitudes. This includes proper communication, positive management response and encouraging employees to work hard by motivating them.