Created instructions,assembly tool too. And for continue to

Created in 1943 by Ingvar Kamprad, IKEA is a big and successful company which allcompanies should draw their inspiration from.That’s why we will talk about IKEA’s organizational design elements which is consistof six key elements: work specialization, departmentalization, chain of command,span of control, centralization and decentralization, and finally formalization.The first key element defines the amount of task are divided into separate parts in anorganization and that’s the case with this company because there are only 4 layersseparating the CEO and the cashier. Here we have a multiple form ofdepartmentalization, it’s a mix between functional and product (more than 9 500products) here is how IKEA provides not just a product but also a life style to people.IKEA use the vertical integration that mean that the strategy is to expand its businessoperation into different steps on the same production path, IKEA has 1 300 suppliersin 53 different countries. The company also has indirect control on suppliers becausewhen IKEA buy, it around 90 to 100 percent of the products own by the suppliers andtherefore they all try to be the cheapest. Like every complex companies, IKEA has adecentralized organization in which a great deal of decision-making authority isdelegated to levels of management. Employees can help the organization by solvingproblems for example when an employee simply removed the table legs and createdthe “flat box”. This is how IKEA used imaginative distribution and delivery option, andbecause of that we can said that there is a low level of formalization to improve thelevel of innovativeness.IKEA approach innovation in using imaginative distribution and delivery options, thecompany is always looking for new idea to keep their consumers satisfied. Thecompany is very innovative for example it created flat box, visual instructions,assembly tool too. And for continue to innovate the company makes a lot of surveysto know their consumers, and to do that IKEA speaks to “all families” (IKEA was the1st retailer to acknowledge through its advertising the broadening definition of familyto include multi-racial, multi-generational, and single-sex family arrangements). Thecompany is distinguished by using innovative materials like bamboo, cotton, …Which are less expensive, which also means that the price will be lower for theirconsumers. As founder’s statement shows “creating a better everyday life for many people” , thepriority of the company is their consumers. IKEA cares about their consumer theywant to provide high quality to the mas and offer a wide variety of home, but at areasonable price. In additional to be modest IKEA gives a lot of itself in ecologicalvalue (the ban on use plastic bags to the installation of solar panels, phasing out ofsales on incandescent light bulbs), and demonstrate it by using ecological product,and participated in charitable projects (IKEA Social Initiatives). Kamprad imprintedSwedish style and cultural values of home, frugality, and practicality.With 1 300 suppliers in 53 countries IKEA faces recent problems. For example, ineach area the domestic requirements are different for example in Asia the companyis too much standardized, and this create problems because Asian culture is verydifferent. In United State of America, the company encounters the same problem withsize bed. Here the main problem is the lake of flexibility, IKEA needs to improve itcapacity to adjust to all the consumer’s needs. There are also few suppliers whopropose high quality and low-cost products, and to counterattack IKEA must beinventive.As a CEO of Vente-Privée.com, I will firstly introduce my company which isspecialized in destocking in the world of fashion and home for over 20 years. Thesesales limited in the time have hallowed to initiate a new mode of consumption. Thiscompany organizes event sales of products of major brands in all areas: fashion,accessories, home equipment, toys, sporting goods, high-tech, gastronomy. Arelationship direct with over 2,600 partner brands throughout Europe can offer highlydiscounted prices: from -40 to -70% compared to the shop price. To announce a sale,an email with a trailer is sent personally to each member the day before the sale. Onthe day of the opening of the sale, purchases are made only online in an ultra-secureenvironment. Sales last on average 4 days. The rigorous selection of brands andproducts, the search for sleek and sleek graphics, the fluidity of navigation, the caretaken in shipments and customer relations are all quality guarantees offered to clubmembers. Today Vente-Privée.com and IKEA have the opportunity to collaborateeach other that’s why in a 2nd time we will talk about linkages that those 2organizations have. They aren’t in the same sector, so they are dissimilar they aren’t in competition witheach other. Population ecology can be a promising idea when the organization aresimilar and in competition, but it isn’t the case with IKEA and Vente-Privée.com. It’sthe same for resource dependence and institutionalism because form one theorganization type isn’t correct and the other the organization relationship isn’t correcttoo in our case.That’s why the appropriate competitive strategy is the collaboration networkingbecause those two companies by working together continually find a new way tointerest people. For example, Vente-Privée.com could sell product that haven’t besold by IKEA, and if even there are rumours about IKEA this company has a greatimage and works with this company is a wonderful thing for Vente-Privée.com. Incollaborating those companies will both be helpful to each other. This collaboration isalso a wonderful opportunity for IKEA to start a fresh: sold all those old products andinnovate by creating news product.

Comments are closed.