Cultural Web of IKEA - Case Study Example

CULTURAL WEB OF IKEA by Cultural Web of Ikea INTRODUCTION Every organization aims at maximizing profits and minimizing the cost of operation. Most managers creatively devise relevant, ethical, and feasible strategies to achieve operational efficiency. This practise is necessary since it is the foundation of a smooth operation and creation of teamwork in an organization. Currently, most companies are adopting various cultural webs to go around this issue. With well-planned and executed cultural networks, companies are destined for better and efficient management practises. In addition, the right relationship among staff members massively improves with effective management. IKEA is the perfect example of a large organization that has developed an exceptional culture web. The web is functional and has resulted in the massive growth of the company and increase of its customer base. ORGANISATION PROFILE IKEA Company was established in 1943 by Ingvar Kamprad. According Ayers and Odegaard (2007), the company is globally known as a dealer in a range of inexpensive and well-designed home furniture and accessories. Although they mainly deal in the two products, currently they also retail food under their label. The company has gradually grown into one of the largest furniture company in the world. Its furniture of Scandinavian design is sold across the world. The company’s founder and top management believe and focus on the production of quality products coupled with good service delivery and after sales services. Consequently, the organization has various stores and branches in 55 countries (Bengtsson, 2010). The growth of the company and increase of the customer base has resulted in hiring of over 100,000 workforce spread across the 55 countries. In addition, the company owns around 253 retail stores in those countries. Ikea’s management came up with a unique and appealing business idea. The specialization in high quality and well-designed furniture sold at relatively low prices is the reason behind IKEA’s success in the global market. Furthermore, the company has its way of operations and believes in a set of values and culture based on customer experience and satisfaction (Edvardsson and Enquist, 2008). Consequently, the company adopted a cultural web that primary concentrates on delivering services and goods in line with the beliefs and practises of the company. The management of the company is described by its top leadership and majority of Swedish people as informal and open. The company affords no special treatment to its staff members; hence, the hierarchy of the organization is flat. The communication is also informal, which promotes sharing of ideas and suggestion between the staff members. All this steps were initiated to promote teamwork and build a reputable and respected company in Sweden and across the world. STRATEGIC THEORY In a bid to succeed and offer satisfactory goods and services to its customers and also to cater for its employees, the company adopted a cultural web. The cultural web gives IKEA an ideal opportunity to change the organization for the best. This strategy allows the company to align all the organization’s elements with one another (Scott, 2007). The cultural web has six elements, namely, stories, symbols, organizational structure, control systems, power structures, and rituals and routines. APPLICATION OF STRATEGIC MODEL Power Structures The company’s leadership and major shareholders are highly concerned about service delivery to the various customers. As a result, the leadership of the company is organized in a way that prioritizes the customer’s needs. The company rules and regulations rank the customer highly than any other person or employee of the firm. This approach has necessitated the adoption of a pyramid leadership structure where the customer is at the top followed by various staff members of the company (Berger, 2011). The various staff members offering services to the customers immediately follow while the company’s chief executive officer is at the bottom of the pyramid. The customers are ranked high because of their financial strength and ability to dictate the business operations and practises. Consequently, the company has a training plan, which is aimed at equipping new employees with relevant skills and knowledge to maintain and uphold the company’s beliefs and practices in service delivery. Training helps employees handle customers appropriately with respect and care (Graen, et al., 1999). Besides, the company views all its employees equally. According to Berger (2011), no employee is given special treatment and services while on duty. The company’s management is mostly concerned with employee’s performance and desire to improve on a daily basis. Due to this, the organization urges and challenges employees to take responsibilities in the firm to prove their worth. This daring is an attempt to assess the employees’ performance and development in the company. This act is a show to the whole world and business industry that IKEA values and supports each and every of its employees’ professional growth (Lutz, 2015). To them, employees are not only a resource, but also a vital part of the success of the company. Organizational Structures The company has multiple stores and branches across the world (Lewis, 2008). These divisions and departments are viewed equally and ranked on the same level. The company also has specific rules and regulations that have created a conducive environment for its operations. Due to the absence of special treatment to the employees, the communication and relations between employees and management are informal and open. This system gives employees an ideal environment to express themselves adequately. Such an organization structure provides an opportunity for employees to bring useful and valuable suggestions that are essential for growth of the company (Hatch, 2006). Furthermore, this gives the company an opportunity to evolve and adopt various innovations and suggestions the staff members make. Cooperation and unity among staff are also upheld due to this system of organization in the company. Control System The company staunchly believes in quality control of its activities and operations across the world. The company’s mission and vision are embedded on the idea of quality control and proper service provision. As a result, the management demands the best out of their employees, which leads to the production of quality and sturdy furniture for their clients (Lutz, 2015). The management examines pieces of furniture produced to ensure they pass the standards set. Additionally, the management keeps the employees in check by ensuring supervision of their work during the production process and making useful suggestions where necessary (Caglar, et al., 2012). As a way of ensuring the employees remain productive and continue producing standard furniture, the management organizes various ceremonies to motivate and reward them for their hard work (Robbins, 2009). In addition, these ceremonies are used to celebrate all employees for committing themselves and upholding the company’s beliefs and traditions in the production of goods and service delivery. The highest performing stores on limited budget and cost are given special rewards for ensuring the company saves on resources during the production process. A perfect example is the company’s sacrifice of worldwide sales as bonuses to all employees in 1999 (Sancovich, 2002). Additionally, the company associates with legitimate and law abiding citizens in its business operations. Consequently, the company is selective in dealing with external suppliers and distributors. The company highly condemns and campaigns against unethical business practises. Thus, the company does not associate or work with suppliers and distributors that aim at maximizing profit and minimizing cost using wrong means and methods (Kristofferson, 2014). As a way of limiting such cases, the company keenly evaluates its associates and partners in the business environment. Furthermore, they optimize the contracts they have with their current partners since they have a real knowledge of them and their practises. Rituals and Routines The company believes in the financial strength and power of their customers. To them, customers come first and should be viewed as the most valuable asset of the company. This belief has necessitated the organization of a friendly environment that seeks to please and give customers the perfect impression of the company. The company’s management organizes a friendly and conducive environment to all its stores across the world (Taylor & Hansen, 2005). In an attempt to please and offer satisfactory services to the customers, the company also focuses on its employees and their conducts within and around the company’s premises. The company rules allow employees to dress casually and informally so long as they are smart and portray the company in a positive way (Chu, et al., 2013). IKEA also insists on open offices with a natural, relaxed environment that allows easy communication and peaceful environment for the mind. Consequently, all IKEA’s offices are open and have no sophisticated partitions. The lack of barriers allows teamwork among staff during services delivery. According to Michie (2014), the company also condemns scolding of employees for mistakes done in service delivery or production process. To them, this is a learning process, and new employees should be taught or nurtured using such mistakes. Additionally, the company believes in saving resources and preserving the natural environment for future generation. The company’s primary sources of raw material are trees and natural forests. Due to this, the company aims at operating at low cost and limited raw materials to safeguard and preserve the environment as much as humanly possible. This act is evident in their offices of work where there are multiple stickers and messages encouraging employees and customers to turn off lights or taps as a way of protecting the environment. They also encourage their workers to do this by promising rewards to various departments or stores across the world that operates and produces standard goods using limited budget and resources. Stories The company is positively viewed and reputed by the general public and customers due to the quality delivery of services and production of standard and long lasting goods. Most of the entrepreneurs and employees hold the company’s hero and founder Ingvar Kamprad dearly because of his efforts (Lewis, 2008). His leadership skills and visions laid the best foundation for the growth and development of the company. The company`s staff speak highly of the founder and owner of IKEA while selling thus advertising the company to the general public. The public also embraces the company`s beliefs and practises which are heavily based on the culture of the Swedish people. Consequently, the company believes in simplicity and teamwork in production and service delivery. Although the company originates in Sweden and believes in the values of the country, other stores and branches are at liberty to adopt the cultural practises of their host countries. Due to this, the company has varying brand images solely based on the culture and traditions of their host countries (Wagner & Hollenbeck, 2010). Such is done as a way to promoting cooperation and acceptance of the branches and stores in a foreign lands. Furthermore, this is one of the ways the company stays true to its beliefs and practises that aim at promoting and preserving cultural traditions. Symbols The company tries to maintain the same image and identity across the whole world (Dahlvig, 2011). Its chains and branches are customized and have almost the same outlook and appearance. Consequently, almost all stores of IKEA worldwide have the same features ranging from office arrangement to dress code of the staff members. Although it is not mandatory, the staff members are allowed to dress in yellow and blue uniforms while on duty. The colours are symbolic since they reveal the flag of original country and homeland of IKEA organization. Furthermore, due to the Swedish origin, the company does everything within its powers to associate all its operations and practises with the culture of their mother country. Thus, their primary brand name and colours are derived from Sweden. The Paradigm The models and management approach adopted by the organization are entirely in line with its current strategy and plans in the business environment. Currently, the company favours no individuals and employees. The past discrimination practises that gave special treatment and favoured Swedish citizens for the various senior post is currently non-existent. The company allows hiring of qualified and competent managers from the international scene. This new strategy is adopted as a way of conforming to the company’s new strategies in penetrating the international markets and also promoting the growth of careers (Mattacks, 2009). Although the company hires managers internationally, it conducts research and thoroughly vets managers to determine their competence and ability to uphold the culture and practises of the company. According to Ledederhos (2003), the managers are also expected to maintain the cultural values such informality and remain humble and down to earth in service delivery. Moreover, they should maintain communication with the organization’s employees as a way of building a good working relationship and teamwork spirit. CONCLUSION Evidently, this organization is unique in its operation and management strategies. Its way of handling both employees and customers is remarkable and effective for the growth of the company. They have power structures that are in line with the vision and mission of the company. Such practises are vital in the achievement of vast profits and development of the company. These practises not only attract new customers who are eager to enjoy quality service, but also serve to maintain the loyalty of their clients worldwide. The company also cares about their image and association with the general public. Consequently, they only conduct business with ethical, competent, and rational group of people in the society. The company’s attempt to keep employees happy and responsible are also evident in its practises. IKEA is keen to reward top performers and also to motivate others to perform and deliver quality services to their customers. Besides, the company aims at minimizing cost and promote preservation and protection of the natural environment. The various sticker and messages in the officers are a good sign towards achieving these goals. Every company and organization across the world should strive at emulating IKEA`s practises and beliefs in service delivery. 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