Business Case Studies & Business Publications

Ikea and the Natural Step

Larson, Andrea, Re...

Case

Ikea and the Natural Step

Larson, Andrea; Reichart, Joel E.

ENT-0030 | Published November 19, 2002 | 33 pages Case

Collection: Darden School of Business

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In 1996, IKEA's $5 billion in revenues made it the world's largest retailer of 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 on entrepreneurship and innovation in large firms, environmentally responsible strategies and network ties, leadership, and corporate culture/values.