Problem #2: IKEA suffers from a lack of innovation and faces the possibility of offering a very similar product base. This is due in part to the lack of fresh blood in the organization. IKEA's policy of hiring the same genre of people leads to inhibiting diversity and innovation to meet change in new markets Recommendation: IKEA should broaden its selection base of hiring people. Whilst not changing the core competencies required of key staff, a new emphasis should be placed on the hiring of people from a mix of backgrounds and personalities. This will promote diversity, infusion of new ideas and ensure the richness of the culture Limitation This diversity may however lead to lack of goal congruence and a distraction from the common goals. There may be a waste of resources to get such a diverse group to agree to a common viewpoint. Problem #3: Not enough like-minded managers (Swedes) to manage stores. Recommendation: There are two options to solve this issue. Firstly, a solution would be to hire more Swedes with similar work ethos and cultural similarities. Secondly, another option is to promote successful managers from various countries to expatriate jobs in other geographies. This would not only achieve strong transplantation oftalent butalso build strong and committed global managers. Limitation There may not be enough capable candidates in the overseas poll of Scandinavian expats. Additionally, looking at the second option of transplanting foreign mangers in businesses outside their home countries may foster feelings of resentment of locals, inhibiting individual advancement. Strategies Used by IKEA: 1. Low-cost leadership strategy: IKEA has a unique business model that connects the needs of our customers with the possibilities on the factory floor. With a deep knowledge about life at home and the challenges most of us have with limited space and wallets on one hand and big dreams on the other, IKEA often develops its products directly on the factory floor. The starting point for product 2011 by Osama Albarrak. All rights reserved