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What type of organizational culture is most representative of IKEA family, Eiffel

Tower, guided missile or incubator?

-The type of organizational culture, which is most representative of IKEA, is family

culture. A family culture is characterized by a strong emphasis on hierarchy and

Cheap College Papers on Ikea

orientation to the person. I believe that family culture is most representative in IKEA

because of its leader and founder, Ingvar Kamprad, philosophy. Ingvar is viewed as a

caring parent and one who knows what is best for the personnel and the company as

whole, He implemented his philosophy of how to run the business in the simplest way

possible and that is why Ikea's management style is described as informal, open and

caring. What can be understood from these success factors is that Kamprad plays a big

role in the success of the company. He has always been the "center" of the business, and

will probably continue to be until he passes away. Komrad has provided economic

stability and career paths for his employees and the coming generations. Kamprad has

been involved in the company as a leader from the start. He has always been the front

figure for IKEA and is a very charismatic leader. In his business, he has been responsible

for the company's culture, so the presence of strength and character in him, is one of the

most significant factors in the development of the culture. Kamprad strong belief in his

tasks create a kind of magnetism to which followers are drawn.

. In what way has international culture proved to be a challenge for IKEA?

-International culture proved to be a challenge for Ikea because they were set on there

way of doing business. Komprad was set on his organizational culture philosophy, and

was not going to change it. According to the text book, one of Ikea's manager said, "

When we entered a new country we did things our way. The idea was to be Ikea

everywhere After all, our furniture is a cultural statement." Going international with that

kind of attitude toward other cultures proved the Ikea way to be wrong to a certain point.

For example Ikea had a difficult time in instituting their Ikea philosophy. Ikea found that

the Germans are very disciplined and precise. They do exactly what they are told by there

boss, and they need everything in writing. This was a challenge for Ikea, because part of

their philosophy was that employees should take responsibility for themselves, and they

don't need a manual or guide in order to do their work. While in France, the Ikea

management was perceived as weak or indecisive because of their informality philosophy

in the work place. The French are used to having formal rules and a strong hierarchy.

. What are the three things that Ikea had to learn in order to do business effectively

in the United States?

- Ikea had to first change its range of furniture's, because although they were

attracting business, the range of furniture was unsuited to the Americans standards. Some

examples of the poor furniture standards for the Americans are

ɨ Ikea's largest beds were five inches narrower than the king size beds that most

Americans preferred.

ɨ Ikea's sofa and armchair were too lightly designed for the Americans.

ɨ Ikea didn't offer any furniture suitable for home entertainment centers.

Another thing that Ikea learned in order to do business effectively was the realization of

the Americans need for convenience in Ikea's store. The Americans like the stores to be

big, with enough information to reduce any additional efforts on their part and to save

time. In order to accommodate the Americans, Ikea decided to change its store layout to

cater to the Americans need.

The third thing that Ikea had to change to do business effectively in the United States was

to grant more autonomy to the American country management. By doing so, the

management team had a little bit more flexibility in running the business effectively.

4. How well has the company been able to deal with the diversity issue? What else

does it still need to do?

Ikea has been able to make some change regarding diversity issues, but is still facing

a lot of challenges. For example Ikea has initiated an American performance review

procedures, which requires documenting the employees' performance, but the Swedish

management team is very uncomfortable with the idea. The Ikea corporation challenges

for diversity are opportunity for advancement, pay increases, and having a diverse

management team.

Many employees feel that there isn't any room for advancement in the company. It seems

that the corporation makes it very difficult for people to advance due to the requirements

they have. Most of the senior management are all Swedish, thus putting everyone else,

who is not Swedish, at a disadvantage for any promotions in the senior management

level. Due to this strict requirement, Ikea has lost many key managers in the United

States.

As far as the pay increases, after the performance reviews were initiated in the United

States, the Swedish management team still did not provide adequate compensation based

on merit. It seems the Swedish management teams are still stuck on the original

organizational culture philosophy of Komprad.

Ikea management team is composed primarily of Swedish origins. Ikea has been trying to

focus in increasing American managers in the US stores, in order to have a balanced

diverse team.

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