IKEA Group Analysis

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The IKEA Group of companies is one of the reasons as to why the company has had such great success. The INGKA Holding B.V is the mother company to IKEA. The company employs a friendly organizational culture to all its employees.The above figure shows the organizational structure of the company. The INGKA Company controls the IKEA Group. The company believes in a highly centralized form of leadership (Dahman, THIERNO, Adel, Sameer, & Dahman, 2011). IKEA has a list of functions namely:

1. retail
2. wholesale
3. distribution
4. purchasing All the employees are treated equally. An outside observer will find a manager arranging the shelves. The designers of the furniture are always independent of interior or exterior influence and
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He made sure that the young employees who joined the organization were adequately trained on entrepreneurship skills.
Organizational framework IKEA suffers from the silo affect whereby the organization puts its information management needs before those of its staff members. Some of its suppliers, therefore, do not know the secrets of the organization so that they do not reveal them to the competition (Essays, November 2013). The company will, therefore, have to make deliberations on whether to include suppliers in its manufacturing processes to be more competitive or to withhold this information and risk competition to take over the market (Essays, November 2013). Throughout the 1200 suppliers, the organization has, most of them are stationed in different countries whereby the manufacturers of the furniture in these countries produce products which are different (Essays, November 2013). The main reason why different products are produced in different countries is that the markets in these countries are usually more different from the ones in other countries. IKEA, therefore, has to make the necessary investigations and find out what the market in that area desires (vemuri,
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That said, the organization can be categorized in the form of a personal organization since it always keeps the needs of its employees for front (Essays, November 2013). The company makes sure that its products achieve high value and customer satisfaction. The organization uses KPIs in management. It uses the Supply Chain Operations Reference ( SCOR )Model in its management structure Management by objectives are beneficial for the organization in that they enable the organization to have better management skills. Secondly, the company uses Supply Operations Reference Model in the management of its key supply chain. Team work is one of the most important aspects of success that enable any organization to be successful. This structure enables the company be able to achieve tremendous growth regarding profits and also regarding the growth of its employees (Essays, November 2013). Similarly, the company ensures that its employees become more diverse in that they learn the different cultures and traditions from the different countries the company embarks

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