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The Cornerstones of Good Business Practices
內容大綱
According to the author, a former CEO of IKEA, a company needs four building blocks to ensure success: 1) A vision that incorporates a social ambition and a strong value base. IKEA’s founder wanted to enable those with limited financial means to have access to home furnishings of good design and quality. 2) Product range and differentiation achieved by control of the entire value chain. Differentiation of products and prices gives a company the opportunity to meet basic customer needs and build a competitive advantage that is difficult to copy. Indeed, many retailers now develop their own product ranges. 3) Market leadership and a balanced portfolio of outlets in emerging and mature markets. IKEA has established a balance of retail markets with growth potential and profitability. It adapts to different markets, offers competitive prices (especially in emerging markets), has a strong value base to fit different cultures, and has a solid, profitable home base to finance its activity. 4) A company that is controlled by a committed owner. The author argues in favour of an owner with majority control who takes a long-term perspective and takes risks. Institutional owners or employed CEOs (non-owners), he suggests, will not stay long enough to meet a firm’s needs.