Organizational Structure Of Ikea Company Essay

Organizational Structure Of Ikea Company Essay

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Organizational structure plays a critical role in the presentation of company image, the hierarchical perspective and the overall explanation of an entity’s objectives and ambiance. The current organizational structure for IKEA stands out to be one of the most appealing and accommodative chart in the functional dissemination and divergence of roles and responsibilities. However, to better support the IKEA Company’s international strategy in the competitive business market, it is prudent that the company adopts an organizational structure that puts the company’s image and scope beyond the standards set and ahead of the potential competitors in the business. Although the analysis and adjustment of IKEA business organizational structure is at the behest of top executive management board and the stakeholders, coming up with a proposed organizational structure to support and well equip the company’s international strategy is essential (Bert Markgraf, 2016).
This paper, therefore seeks to critically analyze and present an optional organizational structure that IKEA can adopt to better support its international strategy and elevate its innovative approach in the global expansion.
Project-based Organizational Structure
The present hierarchical structure of IKEA can be characterized as very functional with a worldwide market strategy. On that record, IKEA can keep up incorporated control over functional activities and in the meantime exploit minimal effort and upgraded quality from international product customers. To better equip the functionality of the company on a global scale and minimize possible lay-offs, the company should strive to improve its strategies to balance with the end goal and g...


... middle of paper ...


...determining the budgetary perspective in a way that it will be easier to analyze whether the project results were within the budget that was initially allocated for in the schedule (Bert Markgraf, 2016).
Conclusion
In conclusion, organizations start a chance to win more contracts as well as control the international market on a larger scale if it adopts the best organizational structure. The use of operational, hierarchical and functional organizational structures do not give room for flexibility of responsibilities as well as the incorporation of external forces who are important in the overall performance. Therefore, if the IKEA group buys the idea of incorporating a project-based strategy in its international dealings, there are high chances of attaining utmost results hence success of the company.








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