1. What are IKEA’s organizational structure and cultures from the case study?

Organizational structure : hierarchy ( informal, open and caring management, responsibility to

what they do )S
Cultures : learning by doing ( working together and become problem solve together )

2. How is leadership in IKEA?

IKEA is a private household supplies retail business, which was found in 1943 and established the first
market in Australia in 1975. Effective leadership is one of the factors in the success of the IKEA, talent
is the prosperity of the enterprise, and also is the enterprise’s greatest wealth. At IKEA, each function
has its own co-workers that report back to the managing director of that function.

There are four leadership styles in path-goal theory, they are directive, supportive, and participative
and achievement oriented. Managers in IKEA show directive, supportive and participate leadership
style in management. Directive leadership is a leadership style in which the leader lets employees
know precisely what is expected of them, gives them specific guidelines for performing tasks,
schedules work, sets standards of performance and makes sure that people follow standard rules and
regulations(Chuck & Alan, 2010). For managers in IKEA, their expectations of employees are being
active, responsible and autonomous in their behavior, critical in their thinking and highly engaged in
their work as shown with IKEA’s success.

Supportive leadership is a leadership style in which the leader is friendly and approachable, shows
concern for employees and their welfare and treats them as equals and creates a friendly climate
(Chuck et al., 2010). For managers in IKEA, he is interested in how happy workers feel and in many
ways he acts as a father figure. Such as, managers in IKEA consult employees over issues and listen to
their feedback or opinions and make the actual decisions in the best interests of the workers as they
believe the staffs still need direction. In this way, this leadership style result in improved performance
when it increases employees’ confidence, lowers employees’ job stress and improves relations and
trust between employees and leaders.

Participative leadership is a leadership in which the leader consults employees for their suggestions
and input before making decisions (Chuck et al., 2010). For managers in IKEA, they encourage
employees to participate in management by always consulting with employees or ask their
suggestions on the final decision. Therefore, employees will more likely to put more effort on their
work.

Furthermore, managers in IKEA also show strategic leadership in their management. Strategic
leadership is the ability to anticipate, envision, maintain flexibility, think strategically and work with
others to initiate changes that will create a positive future for an organization.
 Visionary leadership creates a positive image of the future that motivates organizational members
and provides direction for future planning and goal setting.

3. How does culture affect strategy in IKEA?

Ikea does not spread their “typically Swedish” identity all over the world. They make a

lot of adjustments in many aspects of their marketing strategies. They use different commercials

and advertisement methods adapted to the culture of the country. For example, in the United

Kingdom their slogan at the moment is “The wonderful everyday” while in the USA their slogan

is “Make the dream yours”. The slogan is a way of showing wat IKEA stands for. However, a

deep understanding of local culture is essential to solve cultural challenges. Brands may

need to change their branding and marketing strategies to adapt to the culture in which

they operate.

IKEA adapted to these issues and introduced to the Chinese culture appropriate designs.

It also used local social media sites and Weibo website micro-blogging to advertise and

extend its scope. Localizing your brand is therefore vital for international success. Consistency,

be it in terms of trade or marketing strategy, is above all. Your marketing and promotional strategy

must be in line with your mission and the promise of your brand. Knowing the needs and desires

of local customers is good for the health of a company. You can not help being inventive in this

regard and implementing tactics and policies that favor local consumers. Locally and

internationally, customer awareness has become critical for faster-growing brands.

4. Which culture dominates in IKEA ( frome competing values frameword )?

IKEA culture reflects Swedish Culture coming from Småland in southern Sweden. IKEA

also tried to open branches to various parts of the country as in the United States, France and

other countries. IKEA will adapt some cultures with the country as product standards in
neighboring countries but still have cultural standards from Sweden as well. Sweden

emphasizes good and true communication, open thinking, positive attitude when working. IKEA

Sweden will pay attention to it, so that customers will also be satisfied, If the manager cannot do

equality,Sweden will attempt to employ Swedish people who will be trained to work in neighboring

countries.

5. What aspect of marketing that was affected by culture in IKEA?

I. IKEA adapting to national market.

"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. But as the years went by
we learned to be more flexible, particularly when demand in Sweden declined and
we became more dependent on our non-Scandinavian markets".
II. Patterns of International expansion

IKEA's international expansion has taken place progressively over the last twenty-five
years with an eye towards markets in countries with growth potential. Expansion
outside of Scandinavia was driven by Ingvar Kamprad's intuitive quest for new
opportunities, and his previous successful search for suppliers outside of Sweden with
development strategy. Ingvar said that if we could succeed there, we should succeed
anywhere.He spoke to people on the streets to learn what they were looking for".
Such an empirical experiential such as entering a new market, catering to local tastes,
and gaining expertise through acquisitions and joint ventures.
III. Human Resource Management

For recruitment, IKEA looks for people who have good communication skills, open
minds, positive work attitudes and have good potential without necessarily having
diplomas. It attracts people with its pleasant working environment, job security, and
the care that shows towards the individual. IKEA employees regardless of nationality
are more than likely to have strong preferences for cooperative informal relations,
being independent and have a tolerant approach to others. "We look for people who
know how to listen, and who are able to transmit their knowledge to others. They
 should not feel they are better than others and be curious about what is going on
around them".
Being an IKEA manager overseas isn't just running the stores and distribution systems
smoothly. They must be able to explain to employees and managers why things are
done that way, and win peoples hearts and minds to the "IKEA-Way". They are
expected to be ambassadors and must educate their non-Swedish co-workers
through patience, common understanding, and example.
IV. Dealing with Europeans – Germany
Germany is the largest national organization of the IKEA group accounting for ±30%
of the total group sales with more than 20 stores, including the newly opened stores
in former East Germany.
In general German employees feel that the Swedes are more result oriented and treat
every problem as a challenge that should be met. The Germans are very disciplined
and precise. They do exactly what the boss asks them to do and what is agreed is put
down in writing. A problem is that the Swedish notion and cornerstone of our work
policy "to take your own responsibility" is not perceived in the same way by the
Germans. There is a tendency to adhere very closely to precisely defined rules and
instructions ( difference points of view )
V. Doing things differently in US
Expanding into the US market in the 80's was certainly the boldest developmental
decision that IKEA had made up to that time. From an historical perspective the
venture seemed unlikely to succeed. First the culturally specific requirements for
home furnishing in the United States are considerably different than the European
markets, particularly concerning the size and functions of furniture. Secondly the
American market had come to be known as the "graveyard" of European retailers
with a long list of unfortunate ventures by such successful firms as Casino, Carrefour,
and Marks and Spencers. But somehow IKEA seemed confident that going about it in
their own way would prove an exception to the laws of failure that seemed to doom
European entrants to the US market.
VI. Dealing with Euro - France
The main challenge for IKEA management in France is the French tendency to judge
informality as a sign of weakness, or indecision. People here are accustomed to
formal rules and strong hierarchy. In the words of a former Swedish country manager
when IKEA first started in France: "Some French managers felt that with Swedish
informality they could do whatever they wanted. When we told them that they
should inform their subordinates they did not take us seriously". Some aspects of the
informality can be irritating to the French at such as the lack of formal job descriptions
and written procedures. Whereas Swedish managers will justify this by saying that
they don't like to limit responsibility, and that they get more out of people with an
informal approach, the French tend to be suspicious of informality for the same
reasons.