Ikea Sustainability

Describe how the company attempts to improve its social, environmental and financial sustainability.

Ikea attempts to improve its sustainability a number of ways. By helping their corporate image by achieving great efficiencies in social, environmental and financial suitability, they are able to improve their sustainability with the following factors.

Ikea in 2012 was the largest furniture retailer in the world, where it announced “People & Planet Positive” being an initiative in an effort to make sustainability a household word. In 2013 the sustainability report was released where the company announced that it would generate 70% of energy renewable by the 2017 as well as becoming the renewable energy company by 2020. By this said, IKEA will produce the same renewable energy as the one that it consumes, becoming balanced.

What IKEA looks forward to be producing as much renewable energy as the one that it consumes as said before. Although the investment would be worth for more than $2 billion worth the clean energy around 2015 having the possibility to be wind or solar energy sources.

In this case, sustainability has its cons and pros. It would be a big commitment towards minor things. The first sustainability marketing campaign of IKEA was situated in the United Kingdom, where there was an ad which was transmitting that small things are the one that make big differences. Ikea´s sustainability campaign is a brand campaign where they need to explain what they are what they offer the clients.

Make informed judgments about how it uses (or might use – depending on the info available) cost accounting to pursue these strategies

Ikea by trade policies, technical standards and regulations uses cost accounting. Before the 1960´s ...

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...y of the products from Ikea are stylish and have their own designs which is an important fact making the company unique. Moreover the transportation of the furniture is very easy, because it has a concept of flat packaging.

Thirdly, the promoting strategy of Ikea is the following: a high profile advertisement campaigns, 70% of the annual market are catalogs. Once in an Ikea store the customers are easily guided through the different products available, as well having an excellent webpage with the possibility of personalizing the furniture. After buying the products there is a possibility of delivery although it’s an extra cost. There are sales available as well as second hand products with reduced price.

Fourthly, the market development strategy is a target with different segments in order to enter the markets around the world. The international expansion has as