The Cornerstones of Good Business Practices

http://www.iveybusinessjournal.com/topics/leadership/the-cornerstones-of-good-business-practices
Author: Dahlvig, Anders
Source: Ivey Business Journal
Year: 2012
Company Name: IKEA
Number of pages: 3

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Abstract:

Retailer IKEA did not become one of the most admired companies in the world by trial and error. The company was built on a carefully, well-thought-out foundation that remains firmly in place almost 40 years after the company was founded. The development and importance of each cornerstone is discussed in this article.

What criteria does a business have to meet in order for it to be successful? More importantly: Can a business combine financial success and satisfying shareholders’ demands with the broader objective of contributing to a better society?

A company needs 4 building blocks to be successful:
1. A vision that incorporates a social ambition and a strong value base.
2. Product range and price differentiation achieved by control of the entire value chain.
3. Market leadership and a balanced portfolio of outlets in emerging and mature markets.
4. A company that is controlled by a committed owner.