INGVAR KAMPRAD

“ A great business personality who has inspired millions……”

Made by :Hitesh AggarwalSiddharth Kumar

STARTING OF A BUSINESS MIND

Kamprad began to develop a business mind as a young boy, selling matches to neighbours from his bicycle. He found that he could buy matches in bulk very cheaply from Stockholm, sell them individually at a low price, and still make a good profit. From matches, he expanded to selling fish, Christmas tree decorations, seeds, and later ballpoint pens and pencils.

INTRODUCTION: Ingvar Kamprad is the

founder of world’s leading furniture brand IKEA

IKEA-Ingvar Kamprad Elmtaryd agunnaryd

Ingvar Kamprad founded in 1943 IKEA when he was 17 years old with the money that his father gave him for getting good grades in school.

Present status IKEA is the world’s leading home furniture

retailer with more than 90,000 employees working in its 200-plus stores, and annual revenues exceeding $10 billion.

Next to Bible, the annual IKEA catalogue is the most widely distributed publication in the world.

IKEA operates in 31 countries and generates over $12 billion sales annually.

KAMPRAD:A MAN OF SIMPLE TASTES

Kamprad has lived in Epalinges, Switzerland, since 1976. According to an interview with TSR, the French-language Swiss TV broadcaster, Kamprad drives a 1993 Volvo, flies only through economy class, and encourages IKEA employees always to write on both sides of a piece of paper.. The firm he created is still known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an average of 2-3% over the decade to 2010.

Kamprad says "It is not only for cost reasons that we avoid the luxury hotels. We don't need flashy cars, impressive titles, uniforms or other status symbols. We rely on our strength and our will!”

CORPORATE SOCIAL RESPONSIBILITY IN IKEA

The company’s CSR is manifested in its commitment to social and environmental initiatives.Intially IKEA used to make its furniture from wood sourced from different countries which involved large scale deforestation

IKEA introduced a systematic approach to its environmental policies in early 1990s.Now company monitors a product’s life cycle right from the choice of raw materials through to production and distribution

The company now focuses on using fewer raw materials and creating less waste and it has also stopped using wood from forests that have a high conservation value or natural forests that are intact.

They also use materials certified according to a forest management act of the USA

IKEA gives its staff Environmental Training, and a chance to each employee on the Environmental Committee. Their brochures also display their environmental related efforts.

IKEA is also included in many charitable causes, including UNICEF, Save the Children, American Forests. IKEA works with these organizations to raise the issues like child labor, violence against women and children, and providing aid to victims of Hurricanes.

Kamprad also says “To do business with a clear conscience is an attitude that pays”

IKEA’s VISIONThere is no doubt that Kamprad’s vision

has been the driving force behind IKEA’s success. IKEA emphasizes on self-service and provide its customer with an option to assemble the different parts of furniture at home itself. IKEA has its own talented designers who have received many awards over the years.

Kamprad’s vision has always been customer oriented and he keeps his product lines simple in order to minimize the chances of damage during transport. Kamprad believes In the fact that their furniture must reflect an easier, more natural and unconstrained way of life.’’

A SCANDALIn 1994, an incident occurred which cast a shadow over

Kamprad’s reputation. In this year the personal letters of Swedish fascist activist Par Engdahl were made public which revealed that Kamprad had joined Engdahl’s Pro-Naji group in 1942.

It also revealed that Kamprad had raised funds and recruited members for the group for about 3 years.

No doubt the public revelation came as a shock to Kamprad but to avoid further disagreements he came out with a statement referred to it as his “greatest mistake” and sent apology letter to all IKEA employees.

FINANCIAL STATUS According to weekly Veckans Affärer,he is one of the

wealthiest people in the world. This report is based on the assumption that Kamprad owns the entire company, an approach that both IKEA and the Kamprad family reject. Kamprad retains little ownership in the company, having transferred his interest to Stitching INGKA Foundation(, the parent company for all IKEA stores) and INGKA Holding as part of a complex tax sheltering scheme that leaves his actual degree of control vague.

As of March 2007, Ingvar Kamprad was the fourth wealthiest person in the world, according to Forbes magazine, with an estimated net worth of US$33 billion. In March 2010, it estimated his fortune at US$23 billion, making him the 11th richest person in the world. However, as of March 2011, Kamprad's net worth had declined substantially (down US$17 billion). He had fallen from 11th spot on Forbes to 162nd . As of October 2012, Ingvar Kamprad is listed as the 5th Wealthiest person in the world, according the Bloomberg Billionaires Index, with an estimated net worth of US $42.6 billion.

He uses to live simple rather than luxuries lifestyle. In his novel "A FURNITURE DEALER'S TESTAMENT", he writes “IKEA people do not drive flashy cars or stay at luxury hotels.” Indeed, Kamprad practices what he preaches. “How the hell can I ask people who work for me to travel cheaply if I am travelling in luxury?” which sets a good example of leadership.

Kamprad would not only think of his employees, but also he would always put himself in the shoes of his customers. If he was in their position, what would guide him to make purchases? “I’m a bit tight with money, but so what?” he asks. “I look at the money I’m about to spend on myself and ask myself if IKEA’s customers can afford it.”

Why Ingvar Kamprad????“If there is such a thing as good leadership, it is to give a good example,”

Kamprad spends much time and energy focused on maximizing his resources because his vision is one with no limits.

Early on in his career, Kamprad recognized that the best way to encourage hard work and a strong character in others was to exemplify that in his own life. He didn't want to create a double standard between him and his workers,as he believed that it would negatively affect to both the health and wealth of the entire company.

Popular Sayings by Ingvar Kamprad

“What is good for our customers is also good for us in the long run”

“I could regularly travel in first class, but having money in abundance does not seem like a good reason to waste it”

“Ten minutes are a piece of yourself. Divide your life into ten-minute units and sacrifice as few of them possible in meaningless activity”

“A person who retires feelings that he has done his bit will quickly wither away. A company that feels it has reached its goals will quickly stagnate and lose its vitality”

"There is no doubt that long after he is gone, he will be remembered for creating a class of products that captured the imagination of the world. But those who know him really well might prefer to remember him for the simple and down-to-earth values that defines his life and work. “