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Create a 2 page essay paper that discusses Implementing Strategy.The organizational strategy between divisions is characterized with bureaucracy. This is as a result of a centralized organization stru
Create a 2 page essay paper that discusses Implementing Strategy.
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.
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).
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
