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Ikea Organizational Structure 1

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Running head: ORGANIZATIONAL STRUCTURE
1
Organizational Structure in IKEA
Student’s Name
Institution

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ORGANIZATIONAL STRUCTURE
2
Organizational Structure in IKEA
Introduction
An organizational structure is important in any organization because it determines
how decisions are made by managers and workers in different departments. In the case of
IKEA, its organizational structure is meant to enhance its external functions in various
international regions where its operations are based. On the other hand, IKEA’s
organizational structure emphasizes open interactions between managers and workers to
ensure operational flexibility in the long-term. Consequently, it is necessary for the firm to
adopt a new structure that improves decision making and allows it to respond to various
situations it faces in different nations where its operations are based. In this essay, the
discussion focuses on IKEA’s organizational structure and proposes how it can be altered to
boost the firm’s operations in the industry.
Discussion
IKEA’s international strategy has been identifying areas with a lot of growth potential
and making sure that the needs of consumers there are adequately fulfilled by the products it
sells. This approach has enabled the organization to set operations on the outskirts of cities
with high sales potential in various nations. Moreover, similarities in products sold across
different countries made it possible for the firm to have a unique management approach to
various issues it faced in diverse markets. Thus, the use of a non-hierarchical leadership
approach made it easier for managers to interact freely with workers leading to the realization
of all important goals in the organization (Grant & Jordan, 2012). On the other hand, the firm
also instituted effective problem solving systems that enabled workers to explore various
issues affecting their performance. Thus, high levels of standardization made it possible for
the company to reduce formal relations between its workers in different areas where it
operated.

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Running head: ORGANIZATIONAL STRUCTURE Organizational Structure in IKEA Student’s Name Institution 1 ORGANIZATIONAL STRUCTURE 2 Organizational Structure in IKEA Introduction An organizational structure is important in any organization because it determines how decisions are made by managers and workers in different departments. In the case of IKEA, its organizational structure is meant to enhance its external functions in various international regions where its operations are based. On the other hand, IKEA’s organizational structure emphasizes open interactions between managers and workers to ensure operational flexibility in the long-term. Consequently, it is necessary for the firm to adopt a new structure that improves decision making and allows it to respond to various situations it faces in different nations where its operations are based. In this essay, the discussion focuses on IKEA’s organizational structure and proposes how it can be altered to boost the firm’s operations in the industry. Discussion IKEA’s international strategy has been identifying areas with a lot of growth potential and making sure that the needs of consumers there are adequately fulfilled by the products it sells. This approach has enabled the organization to set operations on the outskirts of cities with high sales potential in various nations. Moreover, similarities in products sold across different countries made it possible for the firm to have a unique management approach to v ...
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