How Can IKEA Improve The Performance Of The Management?
Should IKEA Expand Its Business Globally By Innovating New Products?
What Kind Of Issue Is IKEA Facing In Nowadays?
A decision can be eliminated in the form of course of action intentionally object from a set of alternative to attain organizational objective. The nature of decision making is continuous component of handling any organization or activities of business. It is a report which is made on IKEA Company and the management issues of IKEA Company will be discussed. The report will focus on specific questions of research which will address the problem and decision of Management. Finding will be done on proper analysis by using secondary data. Alternative will be found to improve the efficiency of the employee and Recommendation has been given to improve the performance of the organization.
IKEA is a multinational company that makes and sells ready to assemble furniture, appliances of kitchen and accessories of home. It has been the largest furniture retailer in the world. IKEA have more than 400 stores in 49 countries. It is a company that is known for its modernist design for different kind of appliances and furniture and its interior design work that is referred to eco friendly simplicity. Along with that it is a company which is known for its operational details, corporate attributes and cost control that offered IKEA to lesser its range uploaded by average of 2% to 3% in the time of expansion of global. It produces more than 12000 products of furniture with different interior quality. It has the website on which more than 2.1 million visitors visit and buy products. It is responsible for approximately 1% of commercial conception rich me company in the category of the largest uses of wood in the retail Store (Reimann and Rolfson, 2016)
Management is the backbone of the company that is why it is necessary that the management of the company should be effective. It has been found that IKEA has faced challenges regarding management. The key problem in IKEA is that it has not enough like-minded managers to manage the stores. Another key issue in IKEA is that it has not been through vigorous in receiving the definite of new market and tailoring some of its product to satisfy local market. These management issues can influence the organization in negative way which might damage the reputation of the company in the view of outsiders (Warner and Rowley, 2015). It can be resolved by considering the qualitative and quantitative research. However, the contribution of IKEA is not limited up to satisfy its customer by delivering and providing the furniture but also it is known company due to its contribution and donation to needy people and it supports to UNICEF for making new schools. Due to management issue, company might get influenced adversely so it is essential for the company to consider the possible resolution to resolve the issues rapidly (Guerrero, Maas and Hogland, 2013).
There are number of methods available to research on a specific topic. Find static data has been considered for the research on the management issue of IKEA Company. Qualitative data refers to gather data which is taken in the used to improve the quality. Secondary sources are being used to gather the quality data from the journal articles website and were the Internet (Dekker, Fleischmann, Inderfurth and Wassenhove, 2013).
Idea is a multinational furniture company but it has so many management issues. One of the issues is a lack of expertise in the store of IKEA. Manager should be attentive and have the full knowledge about the company’s product and Vision and Mission so that he could make clear his employees about the objective of the company. It has been found that the manager of the IKEA is unable to give information to the Employees on the right time due to cultural difference. Another issue has been found in the context of IKEA is that it focuses only the local market without making any innovative changes. Expectations of the customer from the idea company are very high so it is a responsibility of the company to fulfill their demands and run with the latest trend of the furniture (Kelley, Cranor and Sadeh, 2013). It has been analyzed to the existing problem of IKEA is that the organization become larger, there is a risk all the links with the culture of Corporate getting thinner. The managers of the IKEA are not appointed on the basis of the experience. Company need to focus on the improvement of the performance because there are so many competitors who can beat the IKEA by focusing on the management team. It has been found that the Swedish managers of the IKEA are expected to be ambassadors, define the IKEA way to learn Swedish co-workers in global operation (Lebherz and Hartmann, 2017). It has been proved that due to this manner of the manager, it would be easy for the Netherlands but not for the Germany and France. It is unable to find a manager in the Sweden that that is why it brings a manager from the different country; they have found it difficult to perform their way of the promotion letter in production and international organization. Company has created a limitation for its product which can be the problem in the growth of the idea company. It does not focus on the retail market strategy and make products only to satisfy the local market (Shepherd and Rudd, 2014).
It has been recommended that IKEA should focus on management issues in a negative manner and resolve it as soon as possible. Manager if the company should be active and attentive towards the work. It has been found that that due to cultural differences manager of the company are not being a good performer. Company should conduct a training and development program and should provide the detail and depth knowledge about the company’s mission and vision. IKEA should widen its selection base of hiring people. It should be higher the people from the different cultural background and provide the proper training about the working style of the company. It will be helpful to promote the diversity and inclusion of new ideas. It will make the rich culture within the company. It should form the formal career path and make a good understanding of the range of the product (Alänge, Clancy and Marmgren, 2016). It is important for the company to give importance to its customer in an appropriate manner. There are two options to resolve the management issue related to manager. Firstly, a company needs to focus to hire the employee of the same country with similar work ethos and cultural similarities. It would be helpful for the company and the other employee to make understand him about the culture of the workplace. Another option can be effective to resolve the issue related to manager. IKEA should promote the manager and focus on certain employees who are able to adjust in different geographical area. Globalization has been promoted to make the one country in the context of business. By focusing on the promotion of successful Manager from different countries to expatriate jobs in other countries, it would be helpful to attend the strong transplantation of talent along with it create strong and committed Global managers (Liang and Yu, 2015).
It has been recommended to IKEA for another issue related to innovation and global expansion. IKEA need to focus on the marketing strategy and foresee the opportunity for the growth of the company. It is not the possible for the employee to work in the same environment for the long time the innovation is necessary for staying longer to an employee. As it has been discussed above that IKEA should focus on hiring the employee from different culture because it brings the new ideas and views of different culture. It should perform in the market research deeply and study about the taste of the customer. It has been analyzed that IKEA is very slow to innovate new product and in global expansion. Company need to conduct market research on monthly basis and should find the way to enter into the new market.
References
Alänge, S., Clancy, G. and Marmgren, M., 2016, Naturalizing sustainability in product development: A comparative analysis of IKEA and SCA, Journal of Cleaner Production, 135, pp.1009-1022.
Dekker, R., Fleischmann, M., Inderfurth, K. and van Wassenhove, L.N., 2013, Reverse logistics: quantitative models for closed-loop supply chains, Springer Science & Business Media.
Guerrero, L.A., Maas, G. and Hogland, W., 2013, Solid waste management challenges for cities in developing countries, Waste management, 33(1), pp.220-232.
Kelley, P.G., Cranor, L.F. and Sadeh, N., 2013, Privacy as part of the app decision-making process, In Proceedings of the SIGCHI Conference on Human Factors in Computing Systems(pp. 3393-3402). ACM.
Larsson, A. and Schiehle, S., 2016, The Effects of Diversity on Multinational Organisations: An exploratory case study investigating the cross-cultural management and organisational culture of IKEA.
Lebherz, M. and Hartmann, J., 2017, Applying the value grid model to the furniture industry: the example of IKEA.
Liang, C. and Yu, F.R., 2015, Wireless network virtualization: A survey, some research issues and challenges, IEEE Communications Surveys & Tutorials, 17(1), pp.358-380.
Reimann, H. and Rolfson, J., 2016, The Process of E-commerce Returns: A Case Study of the IKEA Customer Distribution Center in Torsvik, Jo?nko?ping Sweden.
Shepherd, N.G. and Rudd, J.M., 2014, The influence of context on the strategic decision?making process: A review of the literature, International Journal of Management Reviews, 16(3), pp.340-364.
Stadtler, H., 2015, Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28), Springer Berlin Heidelberg.
Warner, M. and Rowley, C., 2015, Demystifying Chinese Management: Issues and Challenges. Routledge.
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