Good Case Study On Mini-Case Study Of IKEA

IKEA maintained a culture of simplicity that resembles that of its founder, Kamprad, who was a humble Swedish farm roots. Despite his billion-dollar net worth, Kamprad, is a cost-conscious person. His culture extends to items produced and facilities used by IKEA. People who work at IKEA are referred to as co-workers as opposed to employees. This aspect signifies their appreciation of teamwork especially considering that they are creators implying that their cohesion exemplifies their creative abilities. IKEA has fortified their position in the furniture industry through their innovative creations. This aspect shows that the company has highly skilled workforce.
Kamprad, despite being among the richest people in the planet, still prefers a humble life with simple pleasures. IKEA applies the principle of simplicity to all of its operations. This commitment has enabled the company to become a dominant force in the global furniture industry. Furniture created by IKEA through symbols and artifacts have garnered an identity uncharacteristic of other similar products. For example, IKEA gives Nordic names to furniture to symbolize their Swedish origin. IKEA has effectively integrated language into its corporate structure as a means of building teamwork and collaboration among employees. In this case, the same idea of using the term “co-workers” rather than employees is a fundamental indication of the collaborative culture embraced by the company.
Based on the complexity of the numerous tasks, IKEA uses a functional structure in its manufacturing process. The functional structure allows the company to have multiple divisions whereby each serves as a specialized function. This means that experts handling predefined tasks can easily collaborate and share their expertise to achieve a common goal. The functional structure also encourages efficiency in the organizational operations. This structure divides workers into groups where each group has a singular goal and includes individuals with shared expertise. Environmental concerns have constrained IKEA’s primary raw material which is essentially timber. In this regard, the functional structure helps to monitor the company’s resources by identifying each group thus allowing the implementation of measures that promote efficiency while utilizing and allocating resources.