Strategy Making for Management and Economic Research-myassignmenthelp

Question: Discuss about theStrategy Making for Management and Economic Research. Answer: Introduction Established in 1943 by Kamprad, IKEA has lived to pursue many strategies throughout its history to attain its current top position in the market. The Company has maintained a structured value and a distinct purpose in both employees, customer relationships and business achievements (Cooper, 2015). This essay has discussed the competitive and business-level strategies employed by IKEA throughout its history that has made it competitive and how it can improve its strategy making in future using Mintzbergs theory. Henry Mintzberg in 1979 identified five essential components of an organization- operating core, strategic apex, middle line, support staff and the technostructure (Prasetyo Lo, 2016). The strategic apex is at the top of the organization and is responsible for ensuring that the organizations mission is upheld, while the middle line consists of a group of managers who work to convert the broad objectives of strategic apex into operational plans. As an organization becomes bigger, a group called the technostructure is developed to perform specialized roles like quality control. The organization also develops the support staff to help the technostructure in administrative functions like public relations. The final component is the operating core consisting of people who handle basic tasks of production or service offering. In its early stages in 1943, IKEA operated as a small mail order business with only an operating core headed by Kamprad who handled different operations of the firm. Five years later, the company enlarged and started selling furniture. The company also employed different top-level managers to occupy its strategic apex. During Anders Moberg's era, IKEA adopted a low-cost strategy as its dominant competitive approach. Anders who was the CEO developed simple operational tactics of understanding the needs of the clients and then fulfilling them (Chen, Zhang, Yang, 2013). He spearheaded the relocation of the company to Denmark to save Swedish taxation and redefined the companys relationship with its suppliers by using one supplier to offer a variety of materials. The company continued to make different furniture brands using unique materials from its suppliers. It also adopted product differentiation creating a need to develop and improve its technostructure. IKEAs technostructure is comprised of group analysts responsible for redefining its furniture designs to make them more appealing to the customers. Also, the company has maintained a group of motivated middle-level managers responsible for ensuring that the technostructure and other employees, work towards achieving the goals of the firm (Prasetyo Lo, 2016). For instance, the company has maintained a marketing concept that we do our part" by concentrating on our part by developing valuable consumer products using inexpensive materials in a novel way. The middle-level managers at IKEA have been dedicated to ensuring that all employees maintain this concept through proper supervision of roles. As IKEA developed further, it adopted an international expansion strategy by developing its stores in other countries. In all these stores, the company has employed dedicated middle line managers, support staffs and operational cores responsible for loading and unloading furniture and doing other duties in the stores. Furthermore, IKEA split into three distinct groups in 1996, comprising of retailing activities, a firm holding the trademarks and franchise and another one in the finance and banking (Bogomyagkov Machulskyi, 2012). This unique structure enabled the company to obtain a unique influence on its governance and operate efficiently while preserving both egalitarian culture and profitability. The primary aspiration of every firm is to remain at the top of the market through proper strategy making. For IKEA to improve its strategy making in future, it should maintain a competent, creative and organized strategic apex, by employing innovative and qualified CEOs and other top-level managers. This is because the top level management is responsible for formulating, implementing and evaluating strategic business missions. Furthermore, Mintzberg suggested ten roles of a manager which can be grouped into three- interpersonal, informational and decisional roles (Prasetyo Lo, 2016). Only a competent strategic apex can conduct these roles. The company should also ensure that the middle-level managers are committed to supervising the strategic implementation process, the technostructure is composed of dedicated employees who conduct accurate strategic analysis, the support staff is committed to their roles, and the operating core is dedicated to their duties to ensure strategies are successfully implemented. In a nutshell, IKEA, a company which only started as a mail-order business has grown over time to become a global furniture dealer. This growth has been necessitated by its accurate strategies like low cost, product differentiation, and international expansion. For the company to improve its strategy making in future, it must actively maintain the five components of its structure as explained in this essay. References Bogomyagkov, Y., Machulskyi, I. (2012). Corporate and business level strategies at MNEs: A managerial Practice View. Jonkoping International Business School, 1-3. Retrieved April 28, 2018, from https://www.diva-portal.se/smash/get/diva2:563234/FULLTEXT01.pdf Chen, X., Zhang, J., Yang, L. (2013). The Future of IKEA- Watch your expansion steps. 1-37. Retrieved April 28, 2018, from https://www.diva-portal.org/smash/get/diva2:639868/fulltext01.pdf Cooper, H. M. (2015). IKEA hacking: A case study on design, marketing, and branding strategies. 1-110. Prasetyo, A. H., Lo, W. (2016). Towards Strategic Mix 5P. International Journal of Business Management and Economic Research(IJBMER), 7(3), 654-661. Retrieved April 28, 2018, from https://www.ijbmer.com/docs/volumes/vol7issue3/ijbmer2016070304.pdf