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Table of Contents
BACKGROUND (ENTERPRENUR & BUSINESS) 3
REASON BEHIND SUCCESS 5
LITERATURE REVIEW 7
REFERENCE LIST 8
According to Richard Branson (2000) innovative business is one that live and breathes in out of box thinking and its not just good idea but combination of good ideas and motivated staff and good understanding of customer wants and needs. (Tidd et.al. , 2005)
When we talk about IKEA , we start thinking of words like innovative furnishing , cheap , great quality , modern , good store . Ikea has been able to bring a cultural ...view middle of the document...
( Blaug, 2000, p.379). Ingvar had this entrepreneurial quality since his childhood , at age of five he used to get matchsticks form Stockholm and sell them to neighbors at profit . In 1943 at the age of seventeen he started his entrepreneurial journey by starting IKEA with the money he got from his father succeeding his studies by selling pens , wallets and with few years he started mail order system but he saw the main opportunity in furniture.
According to Muzyka the key for entrepreneurship is ability to pursue and capture business opportunity, no should call themselves an entrepreneur until they have identified the opportunity and begun to pursuit the opportunity (Birley et.al 2000) . Ingvar realized the opportunity at an early age as Sweden adopted a progressive social legislation and major development in industries and making Sweden technologically advanced country. Post war boom caused a cultural shift of handing down of custom made furniture through generations . Swedish but people were still interested in buying reasonably priced quality furniture but their ability to do so was impaired by cartel of Swedish manufacturers and retailers causing the price of to go up more than 41% which were very high than other household consumer goods . Ingvar realized there was a social problem and opportunity to produce cheap furniture which would help to fulfill the customer need.
Rauchet et al. (2000) have there are five personality traits that help to define and entrepreneur, risk taking , innovativeness , autonomy , locus of control and self efficacy , need of achievement (Baum et .al , 2000) .
1. Risk Taking : Risk taking has defined as likelihood function or individual temperament towards risk. ( Chell et.al , 1991) . There is always risk associated with entrepreneurships as we are venturing into new area . Ingvar was a risk taker as well as he ventured in to furniture industry when it was high regulated by Swedish cartel of manufactures and distributers.
2. Autonomy : Autonomy has been defined as state and condition of having independence or freedom .( Dictionary.com) . Entrepreneurs also have been defined as abnormal , psychopathic and incapable to adapt to rules and guidelines and standards of conventional organization . (Collins et. Al. , 1970 ). Ingvar has always been autonomous as be started doing small business at age of 5 and by age of seventeen he established his own company ,which is one largest companies presently.
3. Locus Of Control : Internal locus of control refers to self belief of controlling own destiny and future . ( Rotter ,1966) . Internal locus of control is important to entrepreneur as believing in oneself , motivates to reach success. (Baum et.al ,2007)
REASON BEHIND SUCCESS
There are various factors leading to Ikea’ success . One of the main factor can...