Organizational Chart of IKEA

“Organizations employ more people as they grow, which means they must widen the span of control, build taller hierarchy, or both. Most companies end up building taller structures because they rely on direct supervision to some extent as a coordinating mechanism and there are limits to how many people each manager can coordinate” (McShane et al., 2015, p. 327). Due to the tall hierarchy present in the company, it led to many problems within the organizational structure. One of the main problems was that there was not good communication between the lower levels and the higher levels of the hierarchy. “One concern is that executives in tall structures tend to receive lower-quality and less timely information. People tend to filter, distort, and simplify information before it is passed to higher levels in the hierarchy because they are motivated to frame the information in a positive light or to summarize it more efficiently” (McShane et al., 2015, p. 327). This was present within the Cerjugo SA organizational structure. There were three main executives under the president, which all had even more layers reporting to them. This led to a division between the three main executives and the president having to make multiple decisions without the formal agreement between the three executives. This can also explain why the two executives, Jose and…

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…

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.…

trying to sell something. As a result, the public often identifies marketing with hard selling and advertising. But marketing based on hard selling carries high risks. It assumes that customers who are coaxed into buying a product will like it; and if they don’t, they won’t bad mouth it or complain to consumer organizations and will forget their disappointment and buy it again. These are indefensible assumptions. One study showed that dissatisfied customers may bad-mouth the product to 10…

➤ Technology will continue to advance and amaze us. ➤ There will be a continuing push toward deregulation of the economic sector. These three developments—globalization, technological advances, and deregulation—spell endless opportunities. But what is marketing and what does it have to do with these issues? Marketing deals with identifying and meeting human and social needs. One of the shortest definitions of marketing is “meeting needs profitably.” Whether the marketer is Procter &…