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Organization Functions of IKEA
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In modern days, organizational architecture plays a key role in order to allow companies to get success in the market. Organizational architecture, also known as organizational structure, defines as a structure that where the specific company whether works roles, decision making or responsibility are centralized, delegated or coordinated. The organizational structure also identify how the information from level to level within the company. IKEA is one of the international famous firms that designs and produces home furniture such as bed frames and desks. The company also is the leader in retailing furniture and has become the largest furniture retailer over the globe. Therefore the structure of a company is an important factor to achieve a rapidly growth. This paper aimed to describe the IKEA’s organizational architecture and provide analysis that whether any recommendations or changes have to make based on current information.
IKEA has a slightly different organizational structure compared to other large worldwide company. Ingvar Kamprad founded IKEA in Sweden in 1943 when he was 17 years old. The company vision is ‘To create a better everyday life for the many people’ (Inter-IKEA Systems B.V., 2014). Truly, IKEA has provided many home furniture that at acceptable price for the consumers. Besides, The IKEA group of companies has an ownership structure that ensures independence and keep the long- term sustainability for the business. The IKEA group includes the INGKA Holding B.V. is still a privately held company, both parties were owned by the Stichting INGKA Foundation (Inter-IKEA Systems B.V., 2014). The Stichting INGKA Foundation can only use their funding either to donate to charity through the foundation or to reinvest int...
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...l work environment. As a flat structure, employees have few levels of hierarchy (BBC, 2014). By setting more layers of hierarchy, which can motivate the staffs and allow them to achieve a better overall performance. So, the given suggestions can help the business to sustain and reach their next goal in the future.
To conclude, this paper represents the success of the IKEA group when they apply the appropriate organizational structure to its firm. The firm has no doubt that gains advantages by using decentralized structure, include increase the speed of making decision and form a simple layers of management arrangement. Nonetheless, the business can also expand their centralized control by using modern technology devices in order to get maximum outputs. Despite the current problems for them, IKEA has brought a lot of great design that suitable for many families.
The Organisation structure of a company addresses the fact that every organisation has specific units that are responsible for different roles and actions in the organisation and that no department within the organisation stands alone, they are intertwined. The organisational chart or structure should be designed to divide up the work load, responsibilities and roles to be done
Every small or large business requires a structure to grow successfully and in return be profitable. This structure is what defines the way a company and its employees work together to support their common vision. There are different types of organizational structures depending on the type of business (Burke & Litwin, 2002). The main ones that are related to this study are hierarchy, cross-functional and matrix. Costco Wholesale Corporation is the main focus of this research paper. It was founded in Seattle, WA in 1983 but has the headquarters in Issaquah, WA. It was founded by James Sinegal and Jeffery Brotman. Costco operates 698 warehouses in ten countries, Puerto Rico been the recent one. The company also operates an online website as well as receiving revenue from the membership fees. It earns about 3% of its revenue from the e-commerce website, about 2% through membership fees and generates approximately 95% from their in-store sales. It employees about 200,000 full time and part-time staff worldwide. The recent figure of annual revenues $116.2 billion
IKEA is one of the greatest furniture organizations, on the planet. The organization is the biggest organization on the planet; it had an incredible group of partners. The organization 's development from 1954 was zero, in 1994 of 114 organizations. The author of the IKEA Company, Ingvar Kamprad puts stock in an extraordinary group. As indicated by Bartlett, Dessain And Sjoman, 2006 pg., Ingvar Kamprad established the name IKEA from "his initials (Ingvar Kamprad), his home homestead (Elmtaryd), and its ward (Agunnaryd). The organization partners were Ingvar Kamprad proprietor, Marianne Barner the business range administrator, President Anders Mobers, and suppliers. The group of partners and shareholders shaped the premise of the IKEA, improving it, at clients with moderate costs. The low costs, excitement, and benefit was the dialog on the biggest furniture organization on the planet as indicated by Bartlett, Dessain and Sjoman, 2006 10, 11.
This type of organisational structure has many levels of management. The organisational structure has been structured according to its own function i.e. marketing, finance, human resources and sales. This is known as a functional organisation. The hierarchical organisational structure of Wednesbury IKEA is very similar to a tall organisation structure.
In order for one to evaluate and identify with the diverse business structures, he/she must be aware of the meaning and standards that makes that structure. Various businesses functions in different ways as the world is full of technology and new structures, company cultures and new ways in which companies are run. In order to fully grasp the concepts of Organizational structure and culture in the movies, I will use the Movie Up in the Air and The Devil Wear Prada movies to analyze a business scenario from them.
ForIn the past couple of years, IKEA has been deeply involved with the issues of the environment. In the article, “IKEA’s
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
Environmental analysis is integral to understanding how the organization operates within the organization itself, with in the industry and within the macroeconomic environment. For this analysis the subject organization will be IKEA. “IKEA Group is one of the world’s largest privately owned companies, engaged in the retail of flat-packed home furniture and other house wares. Operating over 150 large-scale stores in over 30 countries, and with a mail order division, IKEA sells a range of furniture, which is made by over 2,000 suppliers in more than 55 countries. The company is headquartered in Helsingborg, Sweden”. (DataMonitor, 2007). IKEA major retail competition in the US are: Furniture Brands International Inc , Office Depot Inc , Sauder Woodworking Co., Stanley Furniture Company, Inc. , and Staples, Inc. This paper will identify the key macroeconomic variables which affect IKEA and the retail industry as a whole. To better understand the effects of such variables upon the industry, two specific variables will be developed further. Once an understanding of how the industry is affected by these variables, the challenges and opportunities will be identified for IKEA, which operates in the retail industry.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...
Business structure is a critical factor to determine a company 's success or failure. Generally, larger organization has a more complex organizational structure. In the case of H&M, they had adopted matrix structure, one of the traditional organizational structure, into their business. As shown in figure 1, range of functional groups is listed horizontally across the table and on the other is product/task with a manager taking control of each. The functional structure is divided
The purpose of this essay is analyze the case of IKEA, which has involved in the HR management. Meanwhile, choose two topics to identify the IKEA current situation, including training and development and cross-cultural management. From those two points, give some forward suggestions on the IKEA HR management practice.
E-commerce is available on Ikea’s website to selected countries, and they provide an e-mail address to customers who have queries about their business.
Organizational structure is the way that an organization arranges people and jobs so that work can be performed and goals can be achieved. Good organizational design helps communications, productivity, and innovation. Many organization structures have been created based on organizational strategy, size, technology, and environment. Robbins and Judge (2011, p. 504) listed three common structures: simple, bureaucracy, and matrix. In this post the author will describe the matrix structure, and discuss its advantages and disadvantages.
Organizational structure indicates to how the work of employees and teams within an organization is coordinated. In order to obtain organizational goals, individual work needs to be coordinated and managed. Structure is an important instrument in obtaining coordination, as it appoints reporting relations (who reports to whom), designs formal communication channels, and portray how different actions of individuals are linked together.
Most organizations fall under one of three organizational designs: simple structure, bureaucracy and matrix structure. The organizational design of a company suggests who makes executive decisions and how they are enforced. The organizational design is typically decided based on the size of the company and market place.