The Organizational Structure Of Ikea Essay

867 Words Dec 6th, 2016 4 Pages
In general, the organizational structure can be defined as the system used to draw round the chain of command inside the organization (Grant& Jordan, 2015).The organizational structure is draw guide for how the organization functions with a specific end goal to accomplish their objectives and development. The organizational structure can be reflected through the organizational chart. This essay paper will discuss the proposed organizational structure for IKEA on the light of the shifting in the concentration of the strategic to be expanding globally. IKEA is established in 1943, as a design and sells company that focus on furniture, home accessories, and appliances ("IKEA," 2012).
Thesis
IKEA apply the functional organizational structure. 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. Theses functional departments are asset management, retail and expansion, production, range and supply, and group functions. Based on the functional organizational structure, each function is managed separately, while the product is managed by one department. Although, IKEA 's business model relies on standardization that lead to low cost and raising the sales volume. On the other hand, IKEA management realized the need to adjust their products to the local area requirements. Therefore, the…

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