Implementing strategy is important and required to institutionalize the desirable strategy. Which allows to make everyday decisions and response in a manner that is compatible with long-term strategic success. Matching among the organizational context and its strategy is fundamental to strategic management. Three important elements must be managed to fit the strategy: organizational structure, leadership and culture. Organizational design describes the firm 's behavior and affects its culture; thus, the design shows the firm 's adaptability and flexibility level to change (Grant & Jordan, 2015). This paper will discuss the organizational structure notion, and the three main types of organizational design, and analyze the IKEA 's organizational form. Based on this analysis, the benefits, and drawbacks will be discussed.
Overview of IKEA
According to Grant and Jordan (2015), IKEA is a worldwide furniture producer and retailer. …show more content…
Under those conditions and based on Harper (2015) study, the multidivisional design was selected as an organizational structure for IKEA company, see (Figure1 A). According to Grant and Jordan (2015), multidivisional design is suitable for a company such as IKEA. This structure decentralized decision-making system and allows IKEA 's management to make decisions at the divisional level, while the company 's headquarters focus on firm planning, budgeting, and providing general services. Daft (2013) emphasized that business in order to continue competitive and function efficiently and profitably, challenges and multinational activities are necessary. The company has expanded to global markets, in order to compete and sustain in diverse areas, IKEA should adapt a divisional structure design because each different area or country has dissimilar
Overview of IKEA
According to Grant and Jordan (2015), IKEA is a worldwide furniture producer and retailer. …show more content…
Under those conditions and based on Harper (2015) study, the multidivisional design was selected as an organizational structure for IKEA company, see (Figure1 A). According to Grant and Jordan (2015), multidivisional design is suitable for a company such as IKEA. This structure decentralized decision-making system and allows IKEA 's management to make decisions at the divisional level, while the company 's headquarters focus on firm planning, budgeting, and providing general services. Daft (2013) emphasized that business in order to continue competitive and function efficiently and profitably, challenges and multinational activities are necessary. The company has expanded to global markets, in order to compete and sustain in diverse areas, IKEA should adapt a divisional structure design because each different area or country has dissimilar