Ikea Organizational Structure
Make sure you fully understand the concepts presented in chapter 9 of the textbook.
Ikea organizational structure. The type of organizational structure ikea has adopted suits to the functional figure in which a company produce its goods or services at a large volume and with a relevant low cost. That is why since 1982 the ikea group has been owned by a foundation in the netherlands. Then review some additional information about ikea on the internet. Most of ikea s operations including the management of the majority of its stores the design and manufacture of its furniture and purchasing and supply functions are overseen by ingka holding a private for profit dutch company.
Also review the organizational design elements in this weekâ s module lecture. The functional organizational structure is a framework whereby the teams are assembled in groups in view of a specific assignments or experience spector 2012 there are several functional departments that the company are structured according to them. Letâ s assume that some top ikea executives like and want to keep the current structure. Get to know us better with all the details here.
To complete the new proposed organization structure review the ikea case study from chapter 8 of your textbook. The present organizational structure of ikea illustrated in figure 1 above is the outcome of a major restructuring initiative that was introduced in 2016. See for this structure however recently there has been pressure from a few ikea leaders to consider that the. The founder of ikea ingvar kamprad wanted to create an ownership structure that stands for independence and a long term approach.
Moreover we should say that ikea company successfully uses the functional structure which has as main objective the development of appropriate attitudes to workers. Moreover the report contains analyses of ikea leadership organizational structure and business strategy. Ikea apply the functional organizational structure. Ikea has a unique structure among major retailers.
The ikea corporate structure is divided into two main parts. Founder ingvar kamprad 90 put almost all of ikea s operations into leiden based ingka holding which is owned by a dutch foundation over 30. For this critical thinking assignment you have been asked by ikea to make a suggestion for an organizational chart that ikea can consider to better support its international strategy.