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3 pages/≈825 words
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APA
Subject:
Business & Marketing
Type:
Essay
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English (U.S.)
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Topic:

IKEA Case Study: Organizational Structure

Essay Instructions:

In 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. Let’s assume that some top IKEA executives like and want to keep the current structure. (See 
http://www(dot)ikea(dot)com/ms/en_US/this-is-ikea/company-information/index.html#organization for this structure.) However, recently there has been pressure from a few IKEA leaders to consider that the company must become more innovative in its approach to global expansion.
To complete the new proposed organization structure, review the IKEA case study from Chapter 8 of your textbook. Then review some additional information about IKEA on the internet. Also, review the organizational design elements in this week’s module lecture. Make sure you fully understand the concepts presented in Chapter 9 of the textbook.
Decide what you think would be the best organizational structure for IKEA at this point in time, based on the strategy implementation concepts presented in this course. Be aware that you will need to substantiate your recommended organizational structure changes, or justify your recommendation to keep the current structure.
Then use the internet to find a free software program that can be used to develop an organizational chart (or you may choose to develop the organizational chart in Word using these instructions). Potential organizational chart software options include Gliffy, SmartDraw, and Lucidchart.
Include the following elements in a well-written paper:
• Introduce the thesis of your paper (what you will be presenting).
• Introduce your organizational chart(s).
• Discuss and explain how you determined that this structure should be implemented by IKEA.
• End with a summary statement of the highlights of your paper.
Your paper should meet the following requirements:
• 3-4 pages in length, not counting your reference page(s), which you must include.
• Formatted according to Saudi Electronic University academic writing standards and APA style guidelines.
• Include citations from the textbook in support of your position, as well as citations from at least two additional outside, credible sources. Be sure to include a reference page formatted in APA style.

Essay Sample Content Preview:

IKEA Case Study
Student:
Institution:
IKEA Case Study
IKEA is a multinational group of companies that deals with designing and selling furniture that are ready for assemble. This kind of furniture does include, for example, home accessories, chairs, beds and even some motor vehicle accessories. The company was founded in 1943 by a Sweden guy by the name Ingvar who has been recently classified among the world’s richest people. The company has been performing well since its establishment and it was declared the best furniture retailer in the world in early January in the year 2008. However, the expansion of the company across the world has been challenging to some of the top leaders and some have even recommended some of the alternative strategies that will help the company to go internationally. This discussion is grounded on the basis of the organizational structure that is best for the IKEA Company in its operation in the competitive global company.
IKEA’S Organizational Structure
The current IKEA’S organizational structure is currently concentrated in Netherlands and Switzerland. The company’s operation has been limited in the above two countries and therefore it has not exploited its full potential in the global market. Although the global market is competitive, the company is capable of expanding its business across the world in order to increase its revenue from the high sales that are associated with the global expansion across the other continents in the world. This kind of structure is the best for the IKEA Company and should implement by the management because of a number of reasons (Cavanaugh, 1977).
One of the reasons as to why the above organizational structure is best for the company is based on the concept of the economies of scale. Economies of scale refer to some of the benefits that accrue to the company due to its expansion. In this regard, the company is expected to enjoy high profits from the high sales that are likely to be experienced as it opens new branches in other continents (Cavanaugh, 1977). In addition, the company i...
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