Introduction
When a company is joining international markets, it requires a strategic plan to ensure a smooth transition and high return on investments. According to the article by Ingvar Kamprad and IKEA, is how the company manages its operations that separates it from other firms. Thus, the running process affects the company’s administrative heritage, organizational structure, process, strategic intent, organizational capabilities, layers of competitive advantage, and global mindset (Harvard School of Business 3-4). Relating to the article Jollibee Foods Corp by Bartlett, the administrative heritage of an organization is its strategic and organizational history. This will include how the firm has been able to configure its assets, the history of the organization, and strategies and philosophies it has been able to apply over time.
Organizational Structure
The success of a company depends majorly on its proper organizational structure. Ingvar Kamprad and IKEA maintain that a company’s organizational structure is a hierarchical layout that outlines the enterprise’s mission and the teams that collaborate with the workers (Harvard School of Business 7). The organizational structure describes what the employees do, where they should report, how a decision is made within the organization, and which protocol they follow (Bartlett, ABB’s Relays Business 13).
In the article The Competitive Battle Continues by Bartlett, any company should need an organizational structure because it will act as a leadership pivot. It will help in visualizing how work will flow within the organization. The structure will act like a map explaining how the company should work and how the role is supposed to be organized. Ashely Furniture Industries has structured its functions, markets, how it does its products, and the process that will cater to the industry’s specific needs.
The organizational capabilities have some basic elements, which are the building blocks that depend on any business needs. The blocks cannot originate from single efforts following a laid down procedure. Ingvar Kamprad and IKEA argue that capacity necessitates a great deal of internal engagement inside the business employing unique adaptable characteristics. Thus, the strength and alignment of an organization is the one that gives the organization an identity that differentiates it from the rest (Tan 13). Lastly, the structure should also have centralization that will show how decisions are ultimately made. Once the chain of command has been established, consideration should be made about which department should make which decision.
Process
Organizations do the planning process, which must be carefully worked out. The result is to ensure unity in all the divisions in the firm. Both should act harmoniously in executing their tasks and ensure they have effectively and efficiently achieved their goals. If the process is properly applied, the working conditions will become flawless, with each team knowing its duty, according to Ingvar Kamprad and IKEA (Harvard School of Business 13). Nevertheless, when the organizing process is established well, it may lead to clarity, frustration, lack of efficiency, and limited effectiveness. Ashely Furniture Industries, as an organization, must follow a process and determine which work needs to be accomplished, delegating the task to an individual or group of individuals and making the arrangement so they can have a decision-making framework.
Strategic Intent
Every organization has to position itself strategically, which will guide it due dynamic nature of the business environment. According to Ingvar Kamprad and IKEA, strategic planning necessitates a corporation to conduct an extensive study. The article Managing Knowledge and Learning argues that this can be done by creating specific business strategies, executing these strategies, and evaluating the results and plans aligned with the company’s long-term goal. Strategic planning is relevant in modern business organizations. This is because every firm should place itself strategically to stay relevant in the market (Hanno and Matsushita 7).
It is a process involving the firm’s top management because it is a long-term commitment (Harvard School of Business 15). Before the firm settles on a given plan, it should determine how it will be implemented, and many available options should be examined. Ashley Furniture Industries uses the same concept in integrating its various departments, which include finance, human resources, and marketing, with the organization to accomplish its strategic goals.
Layers of Competitive Advantage
A firm’s competitive advantage is its ability, through its resources, to perform better than others in the market. Article Competitive Battle Continues by Maha Hano argues firm has a competitive advantage when it has a value-creating strategy that no other potential player is proving in the market (Hano 4-5). This advantage is a leverage a business will have against its competitors in the market. If the firm, for example, can decide to advertise its products at lower prices or provide high-quality products, customers will be more interested (Bartlett and Wozny 23). Ingvar Kamprad and IKEA assert that the inspiration behind brand loyalty is the consumer: thus, the client will always choose one brand above others on the market (Harvard School of Business 15). Therefore, it is crucial for a firm to understand the value proposition because it results in a competitive advantage (Bartlett and St. George 13).
If the value proposition works out effectively and gives the clients a better value, this can create a competitive advantage for the product or service offered. Ashley Furniture Industries can gain this advantage by offering its clients a better and improved value compared to competitors. Moreover, the above needs to be done as a long-term ploy for a company to gain a competitive advantage in the industry.
Global Mindset
A firm that operates globally should develop a global mindset for it to do well in all markets. According to Ingvar Kamprad and IKEA, having a global perspective is critical because it allows the company to stay adaptable and ready to comprehend and answer market expectations (Harvard School of Business 17). This kind of mindset will enhance the proper communication skills of people in an organization.
This is because different cultures are unique in their way of communication (Beiske and Gamble 13). Through the interaction of organizations and corporations, they originate from different environments, and entities will now understand how communication should be conducted. This kind of mindset will also help to improve cultural awareness (Hastings 4). This practice will be of great use to Ashley Furniture Industries to know how communication will be done in a different environment. Global organizations exist in different environments with varying cultures and religious beliefs.
Conclusion
Therefore, Ashley Furniture Industries will be able to interact with other firms in the worldwide arena. It will be able to understand beliefs and traditions that are found in places where other organizations exist. The article The Need for a Corporate Global Mind-Set by Begley and David, will improve cultural awareness, help break barriers, and meet clients’ needs. This will, in turn, encourage customer service and enhance the customer experience (Begley & Boyd 5). This is because the organization would have identified the enslaved people well and communicated efficiently with the global customers (Bartlett and O’Connell 3). Therefore, the global mindset enables the organization to provide services effectively as it interacts with different cultures.
Works Cited
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