Introduction
Organizational planning is the process of defining an organization’s objectives, strategies, and tactics to achieve organizational goals. It involves evaluating the current state of the organization, setting goals, and developing an action plan to achieve the desired end state.
Discussion
There are many organizational planning types, including strategic, operational, tactical, and contingency planning, the use of which by IKEA is depicted in Figure 1. Moreover, the Planning and Controlling function is responsible for creating and implementing strategies that are designed to help IKEA meet its goals. For example, IKEA’s goal is to become a global leader in the home furnishings industry. To achieve this goal, IKEA uses a combination of strategic planning and control to ensure that its objectives are achieved. Once the goals have been set, IKEA must implement and evaluate the strategies to ensure that they are being met. The Planning and Controlling function tracks progress and ensures that the objectives are being met. Additionally, IKEA uses data-driven insights to make decisions and measure the performance of its strategies. IKEA is well-known for its efficient planning system, which helps to maximize profit and reduce costs. Through its careful planning, IKEA is able to minimize production problems and minimize errors in the supply chain. IKEA uses a combination of strategic planning and MBO (Management By Objectives) to ensure that the company can meet its long-term goals. Strategic planning involves the formulation of strategies, the implementation of these strategies, and the evaluation of the results.
Conclusion
MBO is a process in which IKEA sets specific, measurable objectives for each department. As an example, IKEA has used strategic planning to reduce costs by improving the efficiency of its supply chain. This includes introducing a new production process that reduces waste and increases productivity. As statistics in Figure 2 show, IKEA has achieved a reduction in production costs through the efficient planning and implementation of MBO.
References
Blanck, T. (2021). How IKEA saves millions through packaging optimization. Chainalytics. Web.