Ikea

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Unformatted text preview: y sector provide a service, such as banking, transportation or retailing. They do not extract the raw materials or make products themselves. 11% of businesses within the UK are retailers. Retailing turnover in the UK was more than £250 billion in 2006. In the tertiary sector, IKEA’s retail stores add value to manufactured goods by providing a form of shopping different to the usual high-street experience. IKEA has more than 260 stores in over 36 countries. These meet the needs of consumers in a number of different ways: • Each IKEA store is large and holds more than 9,500 products giving lots of choice. • Within each store, there are a number of realistic room settings that enable customers to see what the products would look like in their own homes. • The IKEA store is built on a concept of ‘you do half, we do half…together we save money’. This refers to, for example, the customer assembling furniture at home. • Customers handpick products themselves using trolleys. • IKEA provides catalogues and home delivery to save customers’ time. • IKEA stores have restaurants that provide Swedish dishes alongside local food choices. To make its activities more sustainable, IKEA has set up many local UK initiatives: • In 2006 IKEA UK recycled more than 70% of its waste products. Its goal is to recycle 90% of materials. • To reduce environmental impact, in 2006 IKEA UK started to charge for carrier bags. This reduced the use of carrier bags by 95%. In June 2007 IKEA UK removed carrier bags from its stores completely. • In December 2006 IKEA UK gave a brand-new folding bike to each of its 9,000 employees. It also gave subsidised travel tickets to encourage them to travel to and from work on public transport. • IKEA UK has provided low-energy light bulbs to its entire UK workforce and switched its fleet of company cars to low-emission hybrid models. The Times Newspaper Limited and ©MBA Publishing Ltd 2008. Whilst every effort has been made to ensure ac...
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This note was uploaded on 09/29/2011 for the course MGT 3501 taught by Professor Chang during the Fall '10 term at Georgia Institute of Technology.

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