IKEA is one of the worlds leading retailer of furniture and household fittings. In the course of its operation, the company has encountered a lot of obstacles. Therefore, to ensure that its operations are effective and efficient, the company has always been formulating strategic plans to ensure that its operations in the short run and in the long run are effective and sustainable.
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To achieve this status and to ensure that it is maintained, IKEA has developed a strong organization culture and control systems that support its short term and its long-term strategies. This paper shall therefore focus on the organization structure of IKEA and its control system and determine impacts that they have on the companys strategies.
Organization and Control Structure of IKEA and their Impact on the Companys Strategies
To ensure that the operations of the company are effective and efficient, IKEA has maintained a stable organization structure and culture. The managerial strategy of IKEA is formal, non-hierarchical and it is based on teamwork (Peters 9).
The manner in which the organization operates portrays the ideology of its founder, Ingvar Kampard (Peters 11). The operations of IKEA are designed to ensure that its mission is achieved. This mission is to ensure that IKEA makes life better for masses. To achieve this, IKEA has always been producing high quality goods and services to its customers at the most affordable price.
The non-hierarchical organization structure of the organization ensures that all the employees have a duty of care and respect for one another. As a result, employees at IKEA do not have titles. At the same time, they do not get special privileges with regards to the positions that they hold.
There is also effective communication among the employees. This ensures that the correct information if passed from employee to employee and from department to department. This ensures that operations within the organization are conducted in an effective and efficient manner. IKEA also believes in recruiting young employees who are innovative and innovative (Egan 22). This ensures that the organization has the best personnel in its staff.
This in turn ensures that the strategies and opinions that these employees come up with work to sustain the operations of the company in the short run and in the long run. This ensures that IKEA stands at a competitive edge over its rivals. The fact that the organization has adopted a decentralized organization structure ensures that information within the organization flows in all directions.
This therefore gives employees at all levels a chance to contribute in innovation, strategy formulation and decision-making. Thus, a strategy like self-assembly that originated from Gillis Lundgren ended up being a culture in the operations of IKEA as it is practiced at all its outlets worldwide (Egan 30).
In addition, the organization does not believe in hiring experienced individuals. Instead, it recruits young people without prior experience and integrates them to its culture. In addition, promotions are conducted within the organization. This not only reduces expenditure on salaries but also ensures that the company remains the best in terms of creativity and innovation (Jugger 51).
Furthermore, this ensures that the people who work at IKEA have love and passion for their work thus they strive to achieve the goals and objectives of the organization are achieved as well as their own personal goals and objectives.
The fact that IKEA has adopted a decentralized organization structure that is non-hierarchical provides a serine environment for all employees to participate in decision-making and strategic planning. This therefore ensures that the strategies that the organization comes up with put the company ahead of its rivals within the market. This in turn guarantees the sustainability of its operations in the short run and in the long run. As a result, the organization at a better chance of achieving its mission, vision, goals and objectives.
Egan, James. Relationship Marketing. ã Harlow: Financial Times Prentice Hall, 2000. Print
Jugger, Simon. “The Power of Consumers.” Admap 14.2 (2000): 51-55. Print.
Peters. Jameson. Consumer Behaviour and Marketing Strategy. European Edition, Mcgraw-Hill international, 2009. Print.