Implementing Strategy - Assignment Example

Implementation Strategy Organizational Chart to Support Corporate International Strategy al Affiliation Introduction IKEA, a well-known brand globally with numerous branches and stores across the world. The company`s key strategy is providing a high-quality goods at relatively low cost, and that is affordable to many people. IKEA currently enjoys a strong relationship with its suppliers that supports the position of being a cost leader in the market. The organizational success is attributed to the strategy of reducing the cost of between customers and manufacturers.

The emphasis on efficiency and low cost is not achieved at the expense of delivering quality services. With all the success, challenges still arise hindering the global corporate expansion program (Bromiley 2004). The organizational strategy between divisions is characterized with bureaucracy. This is as a result of a centralized organization structure which is inflexible to the constantly changing market needs. The need for an innovative approach in global expansion in addressing the constantly changing global market demands calls for a review of the organizational structure.

Organizational chart The new model in figure 1, is a decentralized system to inspire innovation in global expansion. As opposed to a centralized system where control and decision-making mechanism lies solely with the board, the model structure allows departments to make independent decisions fast as changes in prevailing market conditions fluctuates. For efficiency in logistics, the model integrates distribution and purchasing process under a single department function (Barca 2003).Figure 1.Figure 1.

Advantages of the new structure The new model includes a set of tools that allow departmental managers and branch managers to cooperate with a mutual understanding of the production process and the goals of the organization. By this, it facilitates the quick response to internal and external opportunities, and utilize creativity to present new processes, ideas and products at the local level. Implementing this organizational strategy saves time due to its flexibility to consumer demands. Departmental independence also facilitates the contribution of each department towards realizing the company’s goal of a continued global innovation expansion.

With continued expansion of IKEA globally, the benefits of a decentralized system of management increases immensely. With the rapid growth, different challenges arise at various levels of production and supply. The challenges range from difficulty in responding to different nation`s needs and cultural variations. These constant changes call for an organizational structure whose decision-making mechanism is not constrained to a single department. The decentralized organization model ensures an appropriate equilibrium between autonomy at country level and central management structure.

In essence, it reduces lead times by eliminating bureaucracies and logistics involved in production and supply (Grant 2012). The easy access to suppliers warranties high quality, efficiency, time saving and benefits of economies of scale.Summary statement Compared to the centralized functional system –the current system- the decentralized organizational management system aims at efficiency by ensuring that each department of the organization functions independently with the aim of achieving the company`s goal of innovative system of meeting customers’ needs globally.

ReferencesBarca, M. (2003). Economic foundations of strategic management. Aldershot, Hants, England: AshgateBromiley, P. (2004). The Behavioral Foundations Of Strategic Management. Oxford: John Wiley & Sons.Grant, R. M., & Jordan, J. (2012). Foundations of strategy. Hoboken, N.J: Wiley and Sons.Inter IKEA Systems, (2013). ORGANIZATION. Welcome inside our Company. http://www.ikea.com/ms/en_US/this-is-ikea/company-information/index.html#organization