IKEA's Leadership and Management - Essay Example

IKEA is a privately owned company that specializes in the production of furniture such as beds and desks. It is rated the world’s largest home products company that deals with the design and sale of home accessories as well as ready-to-assemble furniture. IKEA was founded in 1943 by Ingvar Kamprad in Sweden. It operates in 55 countries and has a total of 76, 000 employees. IKEA is recognized worldwide for its wide variety of products, flat storage, affordability as well as high-class models.

IKEA has developed over the years leading to the establishment of other branches of the company in various states. All the branches of IKEA are controlled by a Dutch Corporation known as INGKA Holding B. V. The company has developed properties that have to be managed effectively to ensure no losses are incurred and to ensure that it continues to operate without any obstacles.IKEA’s intellectual property is, therefore, controlled by various corporations which are under the Netherlands Antilles and also the Interogo Foundation in Liechtenstein.

Various activities are undertaken at IKEA that enables the company to be successful in its operations. Manufacturing, purchasing as well as supplying functions have to be effectively carried out by the responsible parties to ensure that the business performs efficiently. Industrial Group of Swedwood is responsible for sourcing the manufacture of furniture and the companies to run the stores of IKEA, and also carries out the functions of purchasing and supply of finished products. IKEA of Sweden, on the other hand, is responsible for the design and development of furniture, home accessories, and appliances (Inter IKEA systems B. V, 2011). IKEA Lakeside has various organizational functions that it has to operate effectively to continue making profits.

The organizational functions have different sections that include marketing, production, accounting, finance as well as sales. Leadership and management employed at IKEA should provide an effective environment that will enable employees to perform these functions effectively. The company also records some internal functions that are carried out in all organizations of IKEA. The company has established a high level of fundamental control and this enables it to continue to be among the leading companies that design and manufacture furniture.

Another strategy that has enabled the company to stay ahead in business is the fact that it preserves the stability of its brand name and image.