INGVAR KAMPRAD Founder of IKEA

Leadership Assignment : Role Model Aghnia Banat (19009037)

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PREFACE

First of all, i would like to thank Allah SWT for His blesses and guidance through the accomplishment of this assignment. I also like to thank the lecturers and tutor, Mrs. Yuni Ros Bangun and Mr. Prasetyo Budi and also Ms. Octa Julian Aladiyah for all the supports in doing this leadership role model assignment. Leadership role model assignment was design to make SBM 2012 students learn more about the real leadership style by learning from a role model which they have choose by them self. This assignment make us explore about our role model and take a lesson learn from them. Finally, I would like to say sorry if there is any spelling or grammar mistakes.

Best regards,

Aghnia Banat

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Table of Contents

Chapter 1 : Introduction............................................................................................................ 4 Background....................................................................................................................4 Purpose...........................................................................................................................4 Chapter 2 : Literature Review....................................................................................................6 Chapter 3 : Profile....................................................................................................................10 Chapter 4 : Ingvar Kamprad Roads to Success........................................................................13 Chapter 5 : Lesson Learned......................................................................................................18 Chapter 6 : Conclusion.............................................................................................................22 References................................................................................................................................23

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CHAPTER ONE INTRODUCTION

I.

Background

Human as a social creature makes them as an individual that needs interaction between others. That makes human cant live alone, but live in a group. God create human with differences. Difference in background, character, point of view, skills, etc that may create conflict between others when interact. Business, organization, community, government, and any other social groups certainly need a same vision and mission that could combine different point of view to achieve the same purpose. Therefore, it required an individual that could unify each individuals vision and mission. That individual called a leader. Leader is the one who guides or inspires others in action or opinion or the one who is followed. Leader should be able to make a decision and to be inspired by others. That shows that we need to learn how to be a leader. Leadership course in SBM ITB assign SBM ITB 2012 students to make a paper of Role Model which be a take home test for midterm exam. The purpose is to explore the figure of leaders inside the Role Model and to understand the way they led and how their leadership to influence themself and their surroundings. Role model is generally means any person who serves as an example, whose behavior can inspired others. A role model doesnt have to be someone who are very successful in their live, but should be someone who can gives us an inspiration based on how they achieve their success. By taking a lesson learned from their background or their life history, we are expected to get a lesson from them. Because leadership is not a talent, but something that could be learn.

II.

Purpose My role model in this assignment is Ingvar Kamprad. Why I choose him to be my role model? It is because he is my inspiration.

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When you walk into a store purchase some furniture, you may not think about the person behind the curtain who actually owns the store. Sometimes, the story behind the owner or the founder was truly amazing. Kamprad as the founder of IKEA has successfully made IKEA which has grown into a worldwide retail brand with about 127.000 co-workers in 41 countries and generating annual sales of more than 23,5 billion EURO with 2,7 billion EURO as their net profit. IKEA as the worlds largest furniture and home furnishing retail chains couldnt be exist without Kamprads role behind it. Kamprads vision has been the driving force behind IKEA's giant success. Therefore I want to explore what has been done by him in his way to achieve all those success. Moreover, I have this big dream of mine to since I was a high school student, to be one of the IKEA franchise owner in Indonesia. Since there are only Index and Ace Hardware in Indonesia, IKEA could be more success than both of those company because of the brilliant system that IKEA apply. Besides that, Im interested in interior design, so it makes me delighted to learn more about IKEA and Kamprad as the founder also the developer of IKEA. Although I wont be able to interview him, I would like to explore all information about him. And hopefully, I could be as successful as him in the future.

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CHAPTER TWO LITERATURE REVIEW

In this literature review I will discuss a few theory that are related with a leader. Particularly those associated with Ingvar Kamprad and his leadership style. What is Leader? First of all, let me define some terms. Leader is the one who guides or inspires others in action or opinion. The one who takes the lead in any enterprise or movement or the one who is followed. Leadership is the lifting of peoples vision to a higher sight, the raising of theor performance to a higher standard, the building of their personality beyond its normal limitations (Drucker, 1985). The ability to influence a group toward the achievement of goals. What Makes a Leader? Leaders may be born, created, or rise to the occasion but all possess similar characteristics. These are a combination of their personality, their beliefs, and their capabilities what you are, know, and do. Together, they create a leader. Effective leaders communicate clearly and honestly to their followers. The leader inspires and leads through strategic thinking, building trust, supporting, and empowering their followers, setting the example, valuing their beliefs and ethics, using their knowledge in the job, building teams, and effective decision making. They pull it together by listening, envisioning, and communication bolstered by their personality and confidence. A Good Leader is... Who is trustworthy, encouraging, fair, dynamic, have a clear vision ahead, honest, motive arouser, confidence builder, motivator, dependable, effective bargainers, have a concept, tolerant to stress, etc.

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Ingvar Kamprad was a good leader because he can set a good example to his followers. He have a clear vision and strong motivation, he also have a concept and used to encourage his employees.

Leadership Theories 1. "Great Man" Theories: Great man theories assume that the capacity for leadership is inherent that great leaders are born, not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership. Learn more about the great man theory of leadership. 2. Trait Theories: Similar in some ways to "Great Man" theories, trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often identify particular personality or behavioral characteristics shared by leaders. If particular traits are key features of leadership, then how do we explain people who possess those qualities but are not leaders? This question is one of the difficulties in using trait theories to explain leadership. Seek to differentiate leaders from non-leaders by who they are. Trait theories usually. 3. Contingency Theories: Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation. 4. Situational Theories: Situational theories propose that leaders choose the best course of action based upon situational variables. Different styles of leadership may be more appropriate for certain types of decision-making.

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5. Behavioral Theories: Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. 6. Participative Theories: Participative leadership theories suggest that the ideal leadership style is one that takes the input of others into account. These leaders encourage participation and contributions from group members and help group members feel more relevant and committed to the decisionmaking process. In participative theories, however, the leader retains the right to allow the input of others. 7. Management Theories: Management theories, also known as transactional theories, focus on the role of supervision, organization and group performance. These theories base leadership on a system of rewards and punishments. Managerial theories are often used in business; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished. Learn more about theories of transactional leadership.

8. Vroom's expectancy theory Vroom assumes that behavior results from conscious choices among alternatives whose purpose it is to maximize pleasure and minimize pain. Together with Edward Lawler and Lyman Porter, Victor Vroom suggested that the relationship between people's behavior at work and their goals was not as simple as was first imagined by other scientists. Vroom realized that an employee's performance is based on individuals factors such as personality, skills, knowledge, experience and abilities. The theory suggests that although individuals may have different sets of goals, they can be motivated if they believe that:

There is a positive correlation between efforts and performance, Favorable performance will result in a desirable reward, The rewardwill satisfy an important need,

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The desire to satisfy the need is strong enough to make the effort worthwhile.

The theory is based upon the following beliefs: Valence Valence refers to the emotional orientations people hold with respect to outcomes [rewards]. The depth of the want of an employee for extrinsic [money, promotion, time-off, benefits] or intrinsic [satisfaction] rewards). Management must discover what employees value. Expectancy Employees have different expectations and levels of confidence about what they are capable of doing. Management must discover what resources, training, or supervision employees need. Instrumentality The perception of employees as to whether they will actually get what they desire even if it has been promised by a manager. Management must ensure that promises of rewards are fulfilled and that employees are aware of that. 9. Transactional vs Transformational Leadership a. Transactional Leadership: Gives rewards in exchange for performance. Manage by looking for deviations from rules. Intervene only if standards arent met. Abdicate responsibilities. The leader exerts influence during daily leader-subordinate exchange without much emotion. Focus on the interpersonal interactions between managers and employees. b. Transformational Leadership Focus is on bringing about a major transformation (change) in an organization. Kamprad type of leadership is transformational. He is the role model of his followers. He give an example to his employees in order to maintain the same vision between each members achieve same purposes.

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CHAPTER THREE PROFILE

A. Ingvar Kamprads Profile

Name Born Birthplace Residence Nationality Marital Status Family -Wife -Children

: Ingvar Feodor Kamprad : March 30, 1926 : Elmtaryd, Smaland, Sweden : Lausanne, Switzerland : Sweden : Married : : Margaretha : 1st : Peter 2nd : Jonas 3rd : Matthias

Risk Factors Career :

: Dyslexia and Alcoholism

1. Selling matches to his neighbors (1935) 2. Expand to selling fish, Christmas tree decorations, seeds and ball-point pens and pencils (1936-1942) 3. Used the money given from his father as a reward for his succeeding in his studies to establish IKEA (1943) 4. During his teens, Kamprad attended some pro-Nazi meetings.

Achievements: 1. Worlds 4th wealthiest person in the world (March 2007) 2. World's wealthiest charity with an estimated value above US$36 billion (2006)
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3. Make IKEA as the worlds largest furniture and home furnishing retail chains 4. Publish a book : The history of IKEA (1998)

B. Company Profile

Type Headquarters The Netherlands Key people

: Private : Leiden, South Holland,

Ingvar Kamprad, Founder Anders Dahlvig, President Hans Gydell, President Inter IKEA Groupt Industry Products Revenue Employees Website : Retail (Specialty) : self-assembly furniture : $28.6B USD :104,000 (2006) : www.ikea.com

The story of IKEA began in 1943 in the small village of Agunnaryd, Sweden. When Ingvar Kamprad, the founder was only 17, his father gave him a cash reward of succeeding in his studies. He used this money to establish what has grown into IKEA. Since then, IKEA has grown into a worldwide retail brand with about 127.000 co-workers in 41 countries and generating annual sales of more than 23,5 billion EURO with 2,7 billion EURO as their net profit. As of August 2010, there are IKEA stores in more than 38 countries. 230 stores in 26 countries are owned by the largest IKEA franchisee, the IKEA group. The other 37 stores are owned and run by other franchisees in 16 countries/territories. One store in Netherlands is owned and operated by Inter IKEA Systems B.V.

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The name of IKEA came from Kamprads initials (I.K) and the first letter of Elmtaryd and Agunnaryd, the farm and village where he grew up. Why IKEA logos is blue and yellow? It is the color of Swedish flag. IKEA vision is to create a better everyday life for many people. The IKEA business idea is to offer a wide range of home furnishings with good design and at prices so low that as many people as possible will be able to afford them. This is the idea of everything IKEA does, from product development and purchases to how IKEA sell their products in IKEA stores globally. The focus of IKEA from the beginning is to make good products at low prices, with developing methods that are both cost-effective and innovative. At IKEA they design the price tag first and then develop the product to suit that price. IKEA product developers and designers work directly with suppliers to ensure that creating the low prices starts on the factory floor. To maximize production equipment by the use of raw materials efficiently and applying technical innovations and the best possible design. It is all about making the most of their production process, keeping waste to an absolute minimum and considering flat-pack transportation and self-assembly. To meet peoples day-to-day needs by eliminating the unnecessary and that IKEA costs are low to make the products more affordable. IKEA has a large number of distribution centres in many countries, supplying goods to IKEA stores. There are about 45 trading service offices in 31 countries. This enables IKEA to develop close relationship with their 1.350 suppliers in 50 countries. By using the IKEA website, the IKEA catalogue and visiting the store, you can choose your furniture and pick it up at the self-serve warehouse. The store itself designed to make customers feels homey by completing the store with a children daycare and restaurant to make customers stay longer and comfortable shopping at IKEA. IKEA also have a delivery system for their customers to make it more simple.

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CHAPTER FOUR INGVAR KAMPRAD ROADS TO SUCCESS

Ingvar Kamprad was born on March 30, 1926. In the small village of Agunnaryd, Sweden and raised on his parents farm called Elmtaryd. In 1897, Kamprads grandfather had killed himself with a gun when he realized that he could not pay the mortgage on their family farm. It was Kamprads grandmother who save the farm from bankruptcy. This was a lesson that have a profound impact on Kamprads life in later years. Live in a farm oblige little Kamprad to help his family. Because he always reluctant to wake up early in the morning to help his father milk the cows, his parents worried their son would not amount to much. You sleepyhead! his father would say. Youll never make anything of yourself! It all changed when Kamprad received an alarm clock for his birthday. Now, Im going to start a new life, he said with determination. Little Kamprad began setting the alarm for 5:50am every day, and removed the off button. This was a major turning point in the young Kamprads life. He began to focus on achievement rather than sleep. Kamprads aptitude for entrepreneurship was evident at an early age. He began his entrepreneurial career at the age of five selling matchboxes to his neighbors by riding his bicycle. He soon discovered that by buying matches in bulk from Stockholm, he could sell them at higher prices in his own hometown, and get a small profit. Then he invested whatever earnings he had made into expansion at 11. From fish to seeds to Christmas tree decorations, Kamprad began to branch out. At the age of 17 years old, Kamprads father gave him a cash reward for his success in school. Kamprad took his money and created his own small company, which he call IKEA. The acronym for IKEAs name was a combination of Kamprads initials (I.K.) and the first letters of the farm and the village where he had grown up, Elmtaryd and Agunnaryd. At first, the company continued to focus on the smaller products Kamprad had begun with, primarily bidding for contracts to supply pencils. Soon, the company was expanding into wallets, watches, jewelry and stockings.

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In 1945 The first IKEA advertisements appear. Ingvar Kamprad's business outgrows his ability to make individual sales calls, he begins advertising in local newspapers and operating a makeshift mail-order service. Within five years of starting up, Kamprad had outgrown his ability to call customers individually. He uses the local milk van to deliver products to the nearby train station. It is our duty to expand, said Kamprad. Those who cannot or will not join us are to be pitiedA glorious future! In 1947, Kamprad decided to purchase an abandoned factory and begin production of a line of furniture. The product was so successful that it would come to revolutionize not only IKEA, but also the industry as a whole. In order to keep his costs down, Kamprad used local manufacturers in the forests close to his home to supply his goods. The furniture was such a hit that in 1948, Kamprad chose to discontinue all his other operations and product lines and to focus solely on furniture. He believed that his company could become a furniture provider on a larger scale. 1951 the first IKEA catalogue is published. IKEA founder sees the opportunity to sell furniture on a larger scale using a catalogue. Indeed, next to the Bible, the annual IKEA catalogue is the most widely distributed publication in the world until now on. In 1953, Kamprad came up with a solution to this problem in the form of a showroom. This is an important moment in the development of the IKEA concept - for the first time customers can see and touch IKEA home furnishings before ordering them IKEAs first furniture, allowing them to make their purchasing decision based on first-hand experience. The showroom is born out of a price war with a main competitor of IKEA. As both companies lowered prices, quality was threatened. Kamprad become concerned about preserving quality. By opening the showroom, IKEA clearly demonstrates the function and quality of its lowprice products. The innovation is a success. People wisely choose the products with the best value for money. Two years later, IKEA would run into trouble. Under pressure from its competitors, IKEAs suppliers began to boycott the company. Turning the problems into opportunity, in response, Kamprad make a decision that would forever change the company. From now on, IKEA was going to design its own furniture.

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Experience has taught Kamprad that not only could the business world be forgiving of his mistakes, but that it was those very mistakes that could end up moving mountains. Indeed, the success of IKEA can be traced back to a simple mistake made by a new employee of IKEA back in 1956. Working in lmhult, Gillis Lundgren had been standing beside a car with a colleague, trying to figure out how to get a bulky wooden table into the back of it. Finally, against company policy, Lundgren said, Oh God, then, lets pull off the legs and put them underneath. It was with that simple statement that IKEA would reorient itself towards the flat design production for which it has become famous today. People just dont make mistakes when they are sleeping, he said as he encourages his employees to take responsibility without being afraid of making a mistake. 1960, The first IKEA restaurant opens in the IKEA store in lmhult, Sweden. In the coming decade, IKEA would continue its expansion, opening its first stores outside of Sweden. As increasing numbers of people showed up to store openings, Kamprad decided to change the layout of his stores to a warehouse style, allowing people to serve themselves. This important part of the IKEA concept is born in 1965. IKEA continue to expand it stores to Denmark, Switzerland, Australia, Austria, France, Belgium, USA, UK, Italy, Hungary, Czech Republic, Poland ,Spain, and etc. Kamprad may be worth $28 billion, but to look at him you would never know it. Kamprad has lived in Epalinges, Switzerland since 1976. According to an interview with TSR, the French language Swiss TV broadcaster, Kamprad drives a 15-year-old Volvo 240, flies only economy class, and encourages IKEA employees to always write on both sides of a paper. In addition, Kamprad has been known to visit IKEA for a "cheap meal." He is also known to buy Christmas paper and presents in post-Christmas sales. In spending his money, Kamprad would not only think of his employees, but also he would always put himself in the shoes of his customers. If he were in their position, what would guide him to make purchases? Im a bit tight with money, but so what? he asks. I look at the money Im about to spend on myself and ask myself if IKEAs customers can afford it.

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"If I start to acquire luxurious things then this will only incite others to follow suit. It's important that leaders set an example. That is why he lives in a modest way to

make him better leader and to make a good example for his follower.
As Kamprad vision has no limits. He spent so much time and energy focused on maximizing his resources. He continues to expand IKEA and make it better each day. He refuses to accept his achievements and settle for the success he has achieved. Instead, he sees life as a continual process of setting goals and working tirelessly to make them a reality. Kamprad believes that the company exists not just to improve people's lives, but to improve the people themselves. The self-service store design and ease of assembly of their furniture are not merely cost controls, but an opportunity for self-sufficiency. This vision is reinforced in their advertising and catalog, as well Everything Kamprad did could be traced back to his desire to meet his customers demands. So he lives to make his companys better. To simplify, IKEA website www.ikea.com is launched in 1997. Besides that, Childrens IKEA is launched. The products we launch in 1997, and continue to sell today. Even IKEA store take care of children's needs by providing play areas, children's room settings, baby areas and special meals in the restaurant. In 1998, Kamprad publish a book Leading by Design : The history of IKEA. Which contain the way IKEA company is and those products that they have been made, etc. 2000, E-shopping is launched in Sweden and Denmark. Now, IKEA customers can shop online. Since then many other markets have started offering online shopping at IKEA. 2002, IKEA recovery is launched. A new product-recovery concept is implemented in more than 100 IKEA stores in Europe to ensure that returned products are, where possible, repaired instead of being wasted. IKEA also formed an organization called IKEA social initiative to handle global community involvement through its partnerships with Save the Children and UNICEF. And also co-operated with WWF. In March 2005, Kamprad has been the richest person in the world surpasing bill gates. And be the World's wealthiest charity with an estimated value above US$36 billion in 2006.

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And IKEA continues to spread it wings to worldwide. Today, Kamprad is no longer in charge of the day-to-day operations of running the company, but IKEA remains in the hands of his family. He has refused to take the company public for fear that it will slow the decisionmaking process that has enabled its growth over the decades. The future of the company lies in the hands of one of Kamprads three sons, although he does not know which one as of yet. He has given his children a challenge. Whichever son is most successful in running IKEA will be the person in charge of the company and also inherit the Kamprad family fortune.

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CHAPTER FIVE LESSON LEARNED

As I read about Ingvar Kamprads performance on the internet, I just want to say that Ingvar Kamprad was truly is an amazing leader and a very good entrepreneur. And these are the lesson learnt that Ive got from him :

Lesson #1 : The Best leadership is by example

If there is such a thing as good leadership, it is to give a good example, says Kamprad. I have to do so for all the IKEA employees.

Kamprads leadership style is transformational leadership. By being a role model to his followers or employees, he also recognized that the best way to encourage hard work and strong character in others, he must exemplify that in his life. Like all his employees are encouraged to do, Kamprad writes everything on both sides of the paper. He also refuses to have his own private and well-equipped office. I could have an office all to myself, but since my collaborators dont have one, then I too am content to have a desk in the shared room, says Kamprad. It is better to be a bit stingy than throw money out of the window. "If I start to acquire luxurious things then this will only incite others to follow suit. It's important that leaders set an example, thats why he lives in a modest way. He travels on public transport whenever he can and uses his pensioners free bus pass in Sweden. He buys his fruit and vegetables from the market in the afternoon because its cheaper. He re-use his teabags and some people used to see him and his wife eating in a cheap restaurant. Those personal thriftiness also shown in IKEA business idea, to offer a wide range of home furnishings with good design and at prices so low that as many people as possible will be able to afford them. In spending his money, Kamprad would not only think of his employees, but also he would always put himself in the shoes of his customers.

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My father also says that it is important for us not to use all the money we have when we are in the best financial condition, but to save it and then use it when we need it. Because we wont know what will happen tomorrow or in the future.

Lesson #2 : Time is an Entrepreneurs Best Asset

"Time is your most important asset says Kamprad. You can do so much in ten minutes. Ten minutes, once gone, are gone for good.

A book says no time is no excuse because theres always enough time if you spend it right. Little Kamprad has began to focus on achievements rather than sleep since he get an alarm to help him woke up early every day. He was obligate to help his father milk cows everydays, but he was still that young that makes him reluctant to wake up early. But ever since his father doubted on his capability, by saying that he will never make anything of himself, he has been motivated to beat his reluctant of waking up early. So he removed the off button of his alarm and began to wake up early every day.

In the company, efficiency and effectiveness is one of the most important things. Kamprad feels that excessive management can cut into the companys productive time. That is why the companys aim is to eliminate excessive levels of management with the goals of efficiency and persistent work.

Both on a personal and professional level, Kamprad remains bent on making maximum use of his time. He refuses to accept his achievements and settle for the success he has achieved. Instead, he sees life as a continual process of setting goals and working tirelessly to make them a reality.

Lesson #3 : Mistakes are a Must on the Road to Success

Only those who are asleep make no mistakes, says Kamprad.

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Experience has taught Kamprad that a mistake could end up moving mountains. The flat design production of IKEA has become real famous today, and it is because a simple mistake made by a new employee of IKEA back in 1956. People just dont make mistakes when they are sleeping, he said as he encourages his employees to take responsibility without being afraid of making a mistake. When Kamprad was a teenager, he join the pro-Nazi group run by a Swedish fascist. He not only attended group meetings, but he also raised funds and recruited member to the group between 1942 and 1945. This is part of my life I bitterly regret, says Kamprad. After a couple of meetings in pure Nazi style, I quit. In a letter he wrote to employees titled The Greatest Mistake of My Life, Kamprad apologized to IKEA employees of Jewish heritage and asked for forgiveness. But from my point of view, mistakes are not a prerequisite for success. What do you really learn from mistakes? You might learn how to not do it again, but you still dont know what you should do next. Contrast that with learning from your success. Success gives you real ammunition. When something succeeds, you know what worked and you can do it again. And the next time, youll probably do it even better. But it is true that nobody lives makes no mistakes.

Lesson #4 : Take Your Cue from You and Your Customer

Kamprads vision was to make IKEA dedicated to provide good quality and well functioning products at low prices. The company also hires its own designers to meet his customers demands. We have decided once and for all to side with the many, Kamprad said early on his career. What is good for our customers is also, in the long run, good for us. The easiest, most straightforward way to create a great product or service is to build products we need. IKEA showroom has been made to help customer choose the right products that they need and the warehouse was build to allow people serve themselves. He also complete IKEA store with restaurant and a children daycare to make customer who wants to stay longer at the store fulfill their need and simplify their shopping time.

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Lesson #5 : Turning Problems into Opportunities

Kamprad began to develop a business as a young boy, selling matches to neighbors from his bicycle. Although he was a little bit hard for him because hes still that young, he found that he could sell them individually at a low price and still make a good profit. He began to expand to selling fish, christmas tree, etc. Two of IKEA biggest concept was born through their problems. In a price war with IKEAs main competitor, Kamprad came up with a solution to this problem in the form of a showroom. As both companies lowered prices, quality was threatened. Kamprad become concerned about preserving quality. By opening the showroom, IKEA clearly demonstrates the function and quality of its low-price products. Two years later, under pressure from its competitors, IKEAs suppliers began to boycott the company. Turning the problems into opportunity, those limited resources force you to make do with what youve got. Theres no room for waste and that forces Kamprad to make a decision that IKEA was going to design its own furniture. Those two concepts was successfully make IKEA as successful as now. So dont be afraid to take an opportunity to make an innovation. It may change the way world used to see.

Lesson #6 : Commit to Reach Beyond your Vision

Kamprads vision has been the driving force behind IKEAs success. He believes that the company exists not just to improve people's lives, but to improve the people themselves. IKEA hires its own designers, who have received numerous awards over the years. The selfservice store design and ease of assembly of their furniture are not merely cost controls, but an opportunity for self-sufficiency.

What you also need is a commitment strategy, not an exit strategy. You should be thinking about how to make your project grow and succeed, not ahow youre going to over it. If your whole strategy based on leaving, chances are you wont ge far in the first place. Good things dont come around that often, so do your best to reach beyond your vision.

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CHAPTER SIX CONCLUSION

Kamprad broke the rules of retail when he created IKEA. And it worked. How did he do it? 1st : He met a NEED : The world impossible has been and must remain deleted from our dictionary, says Kamprad. When others said it couldnt be done, Kamprad went and did it. Kamprad listened to what the customer wanted and set out to meet that demand. 2nd : He set an EXAMPLE : If there is such a thing as good leadership, it is to give a good example, says Kamprad. He makes an example for his employees to follow by exemplify it in his own life. 3rd : He used his TIME wisely : Happiness is not reaching your goal, says Kamprad. Happiness is being on the way. It is our wonderful fate to be just at the beginning. Kamprad was never one to sit still. His vision has no limits. He spent so much time and energy focused on maximizing his resources. He continues to expand IKEA and make it better each day. He refuses to accept his achievements and settle for the success he has achieved. Instead, he sees life as a continual process of setting goals and working tirelessly to make them a reality. Kamprad use his time to the best of his abilities. 4th : He made MISTAKES : Making mistakes is the privilege of the active, says Kamprad. From his teenage yers into adulthood, Kamprad was not afraid to make mistakes. Some he regretted, some he didnt, but he took the opportunity to learn and improve from them all. Kamprads way to surviving the tough times turn himself as one of the most successful entrepreneurs in the world. His ability to make innovations had created IKEA as the worlds largest furniture and home furnishing retail chains

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REFERENCES

1. Ingvar Kamprads profile http://www.nndb.com/people/791/000043662/ http://en.wikipedia.org/wiki/Ikea http://en.wikipedia.org/wiki/Ingvar_Kamprad http://www.myviplife.com/lifestories/vipbusiness/Ingvar_Kamprad_bi.php?c=10

2. Literature Review http://www.mgrconsulting.com/Newsletters/eNewsletter_06_02.pdf http://psychology.about.com/od/leadership/p/leadtheories.htm Lecture slide from Leadership Course

3. IKEA Company Profile http://www.ikea.com

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