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Sustainability at IKEA Group Case Solution

Solution Id Length Case Author Case Publisher
2818 1747 Words (9 Pages) V. Kasturi Rangan, Michael W. Toffel, Vincent Dessain, Jerome Lenhardt Harvard Business School : 515033
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IKEA Group is a global home furnishing retailer that aims to make sustainable living accessible and affordable to as many people as possible. It has taken steps to incorporate sustainability into its operations and product offerings, such as sourcing its materials from sustainable sources. The company created the goal by the end of the year to obtain all of its timber, documents, and packaging from further environmentally friendly sources. Energy efficiency: IKEA Group has invested in energy-efficient lighting and environmentally friendly supply sources like a turbine, photovoltaic electricity and heating systems in its stores and distribution centres. Product sustainability: IKEA Group has introduced various sustainable products, including furniture made from renewable materials, LED lighting, and water-saving faucets. In summary, IKEA Group has taken a holistic approach to sustainability, incorporating environmental, social, and economic considerations into its operations and product offerings. The company's efforts demonstrate a commitment to promoting sustainable living and reducing its environmental footprint.

Following questions are answered in this case study solution:

  1. How would you assess IKEA Group’s People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan’s targets too limited, appropriate, or too ambitious?

  2. How do you feel about the progress IKEA Group has made in implementing the plan?

  3. How does IKEA’s sustainability strategy align with its business model? What are the overlaps? What are the conflicts?

  4. Which option(s) should IKEA Group pursue to address IKEA’s Wood Supply Chain sustainability? Which has the highest leverage for IKEA?

  5. What strategy would you recommend for IKEA for its wood sustainability without compromising its growth target for 2020?

Case Study Questions Answers

1. How would you assess IKEA Group's People and Planet Positive sustainability plan? Is the plan likely to help the company transform its business? Are the plan's targets too limited, appropriate, or too ambitious?

The Human and Nature Affirmative strategy for sustainability by IKEA Group seeks to increase the viability of the business activities and be socially responsible by concentrating on the following aspects: independent use of resources as well as ethical power procurement, as well as a better life for people and communities. The strategy possesses several objectives, including using 100% encouraging ecological practices, using sustainability from renewable sources, and lowering the release of greenhouse gases living. Overall, the environmental strategy of Persons and World beneficial appears to be a comprehensive as well as determined initiative it could help IKEA Group transform its business towards sustainability. By setting clear targets and investing in sustainable technologies and practices, the company can reduce its environmental footprint and create a positive social impact. 

However, the plan's success depends on how well IKEA Group implements it and measures its progress. The targets may be too limited or appropriate depending on the company's starting point and its challenges. For example, the target of using 100% renewable energy may be ambitious, but it may be achievable for IKEA Group, given its size and resources. On the other hand, some stakeholders may argue that the plan's targets are not ambitious enough or that the company should do more to address certain sustainability issues, such as waste reduction or social inequality in its supply chain. Therefore, it is important for IKEA Group to listen to feedback from stakeholders and continuously review and update its sustainability plan. In summary, the Individual and Earth Beneficial environmental strategy from the IKEA family of companies is a significant step towards sustainability, and if implemented successfully, it can transform the company's business and create a positive impact. However, the plan's targets should be regularly reviewed and updated to ensure they are appropriate and ambitious enough to address the sustainability challenges the company faces.

2. How do you feel about the progress IKEA Group has made in implementing the plan?

As opposed to the Furniture Group's Humans and Earth Beneficial sustainability strategy might appear bold and possessive, it seems like their bodies have moved closer to their stated goal. Their million-euro acquisition of light-emitting diode goods has produced savings on expenses of roughly forty thousand dollars, and at the end of two thousand twenty-two, the group had achieved some additional third of its that year's goal. Furthermore, to help them achieve their objectives, they have created sustainable energy sources such as turbine fields, plant matter, and photovoltaic power panels. Through their ways of obtaining timber, they are additionally able to create a delivery network that is more environmentally friendly. They are "arguably one of the biggest users of lumber" in their sector, so there is a tremendous chance to look for sustainable alternatives. 

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