IKEA and the Natural Step

Abstract:     
In 1996, IKEA's $5 billion in revenues made it the world's largest retailer of furniture and home furnishings. This case uses IKEA to analyze how large companies can retain their entrepreneurial roots and innovative capacities through various means, including the management of global networks of alliances, internal systems that encourage innovation, and a strong corporate culture. IKEA has extended its activities as an innovator through its incorporation of the Natural Step framework for assessing the ecological and social sustainability of commercial activity. The case lends itself to class discussions of entrepreneurship and innovation in large firms, environmentally responsible strategies and network ties, leadership, and corporate culture/values.

Number of Pages in PDF File: 33

Keywords: business and society, corporate social responsibility, cultural conflict, entrepreneurship, environmental issues, innovation management, leadership, diverse protagonist, African-American, nationality

JEL Classification:

Case and Teaching Paper Series