IKEA case study

IKEA case study

BA 611 01
Integrative Case 3 –

1) What are IKEA’s organizational design elements?
IKEA has a strong corporate culture and believe that it is their mission to provide with high quality furniture at an accessible price. The organizational design elements are based on restructuring of the company strategy ever since World War 2. This strategy lead to a even more effective strategy ever since by partnering up with the right suppliers and being able to offer more variety of raw materials and furniture options that lead to a regional and global expansion operating in a total 52 countries today. Another aspect of their organizational structure is that each department is broken up according to product lines and operations within the company. Finally, their customer service offers an integrative method of approaching customers to improve the before/after purchase experience creating a relationship with customers that goes beyond the product purchased.

2) How does IKEA approach innovation?
By being customer service oriented, environment friendly and price conscious. IKEA already has established their target market; they focus on maintaining a relationship with their customers by offering a strong customer service via constant following up with customers and also by surveying them. Their products are sustainable raw materials and other recycle materials that itself adds a great “green” public image to the company. Additionally, the majority of their products are foldable/ put it together so that it can help IKEA reduce costs in transporting the products to the customer’s house.

3) Describe IKEAs culture
The “IKEA’s way” is the culture of the company. The definition of that means offering innovative, quality, affordable products and also ensuring the satisfaction of customers. That has been IKEAs culture and it has been proven successful for the past years.

4) What challenges does IKEA face?
First, IKEA is a global company and it deals with...

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