The Change Of The Furniture Industry

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The structural changes needs to address the progress of the furniture industry which is already matured.. By 2001, the company had opened foreign subsidiaries in 32 nations. Currently, the group operates in 43 nations and has 328 stores in 28 states across the globe (Inter IKEA Systems B.V. 2016). This include geographical location such as the West Europe, Scandnavia, North America, East Europe, Asia and Australia. The expansion strategy of the company intends to venture into the Japanese market. Currently, the group is led by Peter Adgnefjail who is the president and the CEO. Agnefjäll t ishe Group Management of IKEA (White, 2004). Following the ambitious intention of the IKEA to expand globally, the leaders of the group ought to adopt an innovative geographical area organizational structure to support its international operations and administrative process. Organizational Chart This design will focus on bringing the divisional structure of the group together according to customer and products that will be distributed. The geographical area division structure allows the multinational to operate using division that takes care of various business functions including production, marketing, sales, and finance. In this case, the regions represent the divisions of the group that will allow IKEA to establish its operations in various nations under the 6 regions. A geographical area division structure would be ideal for the company to implement a global expansion strategy.

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