Ikea: Scandinavian Style

Case 1

IKEA: Scandinavian Style*

Submitted by: Archit Sharma

Date: 13 Sep 2018

Ques. Using the contextual dimensions presented in today's class describe IKEA?

Answer: the Contextual dimension of a company can be broadly classified into 5 categories which are as follows:

•    Goals and Strategy: This dimension helps a company to strategies its long-term goals and objectives in order to draft plans of action.

•    Environment: This dimension refers to all the external and environmental factors which are beyond the control of an organization such as: political, legal, social, technical etc.

•    Size: It describes the total workforce strength, assets and expansion policies of a company.

•    Culture: Cultural dimension refers to the set of ideologies and beliefs of various stakeholders such as customers and shareholders.

•   Technology: Technological dimension plays a vital role in the organization to achieve the set goals through the means of equipment and machinery being utilized to carry out day to day operations.  

In conjunction to the case of IKEA

Likewise any other organization, IKEA too follows the Contextual Dimensions of Organizational Design.

•    Goals and Strategy

The primary goal of IKEA which marks its inception was to provide families with low-cost furniture designs through the convenience of catalogue sales in the market. IKEA also started with own its warehousing as to eliminate the first step of product distribution by allowing warehouse container pick-up by customers. Along with building up a long-term relationship with the customers.

•    The Environment

IKEA is vigilant towards the controllable and uncontrollable factors around it, that is what it drove them to phase out their strategy of being opaque and bring out a full public disclosure of their profits, assets, and liabilities via Swedish documentary.