IKEA Corporate Structure Essay

IKEA company structure is based on a series of groups and partnerships that devise amongst themselves the running of IKEA. Since 1984 IKEA GROUP is owned by a not-for-profit foundation based on the Netherlands called ‘Stichting INGKA Foundation’ founded by Ingvar Kamprad in 1982. This foundation is also owner of ‘INGKA Holding B. V’ which is a parent company for the IKEA GROUP. This company runs most of the operations for IKEA Group such as management of the majority of its stores, the design and manufacture of its furniture, and the purchasing and supply functions.

While ‘Stichting INGKA Foundation’ and ‘INGKA Holding B. V’ runs most of the operations for IKEA, the IKEA trademark and concept is own by a completely different company called ‘Inter IKEA Systems’. Altough most of the stores are a part of ‘INGKA Holding B. V’ there are some are franchised independently. Regardless of that, ‘Inter IKEA Systems’ receives from every IKEA store 3% of its revenues for a franchise fee. IKEA GROUP is subdivided in to in two sub-groups, the IKEA Group Management and the IKEA Group Companies.

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While the IKEA Group Management takes care of the business and management part of the company the IKEA Group Companies are responsible by carrying out the necessary functions to bring IKEA products to market. This part of the group is composed by Swedwood, IKEA of Sweden, Purchasing and Supplies and Distribution. Swedwood is the responsible for the manufacturing of IKEA products, while IKEA of Sweden develops and designs the products that are sold on IKEA stores.

Purchasing and Supplies is the part of the group that makes sure that the production is reliable, efficient and with a minimal waste during the manufacturing process and Distribution carries out the distribution of product through the stores and is also responsible for maximizing efficiency, analyzing and managing supply chain issues and maintaining quality control throughout the supply chain.