Foundation Ownership at IKEA

Abstract

This case study examines the governance role played by the Interogo Foundation as the owner of the Inter IKEA Group (the owner and franchisor of the Ikea concept) and its other subsidiaries. The IKEA businesses are the largest home furnishing operation in the world. In total, the various companies have around 200.000 employees and annual revenues exceeding €38.3 billion. The IKEA businesses have exhibited impressive self-financed growth since their inception in 1943. During the 1980s, the original IKEA business was divided into three independent holding companies owned respectively by two independent foundations and the third part owned by the founding Kamprad Family. In addition, the IKEA franchise businesses also include a number of other franchisees owned by listed companies or private owners.