Supply Chain Management for IKEA HACKS Store Company

1.0 Introduction

IKEA HACKS store is an international company specializing in home furnishings and accessories. The company has a unique design and customer service approach, providing customers with creative and affordable solutions to their home furnishing needs. However, due to the complexity of the global supply chain, the company must manage across organizational and cultural boundaries (Butola et al., 2021). This essay will discuss the strategies the IKEA HACKS store company can employ to manage organizational and cultural boundaries and ensure successful operations effectively.

1.1 Definition of Supply Chain Networks (SCN)

A Supply Chain Network (SCN) is a strategic network of suppliers, manufacturers, distributors, and customers, all working together to deliver products and services from the point of origin to the final destination. The SCN for the IKEA HACKS store company will involve the suppliers providing raw materials and components, manufacturers producing the products, distributors delivering the products to the stores, and customers purchasing the products (Thakur & Muralidharan, 2019).

2.0 Departmental Store and International Partner

When looking at managing across organizational and cultural boundaries, the IKEA HACKS store company needs to consider both its departmental stores and international partners.

2.1 Departmental Store Collaboration

Collaboration between departmental stores is key to success at the IKEA HACKS store company. The company should ensure that each store is well-equipped with the resources, processes, and systems to collaborate effectively with other stores. To do this, the company should use data-driven decision-making to identify opportunities for Collaboration between stores and use this data to develop efficient processes and systems that enable effective Collaboration (Butola et al., 2021).

It is also important for the IKEA HACKS store company to ensure that all its stores are properly trained and equipped to handle different cultural and language barriers. This may include providing language translation services and cultural training to ensure that all employees are aware of the customs and expectations of different cultures.

2.2 International Partner Collaboration

IKEA HACKS store company should also focus on collaborating with its international partners. This includes developing effective processes and systems that enable Collaboration across different countries. This may include developing a common language for communication, developing standard processes and systems for Collaboration, and utilizing data-driven decision-making to identify areas for improvement. Additionally, the company should ensure that all its partners have the necessary resources and systems to collaborate effectively (Thakur & Muralidharan, 2019).

Finally, the IKEA HACKS store company should ensure that all its international partners know the different cultural expectations and customs associated with their respective countries. This may include providing training and resources to ensure that all employees know different countries’ cultural norms and expectations. This will ensure that the IKEA HACKS store’s international partners can collaborate respectfully and efficiently (Thakur & Muralidharan, 2019).

3.0 Supply Chain Collaboration

Supply chain collaboration is essential for the successful operation of any company, especially for a company like the IKEA HACKS store. Collaboration within the supply chain requires members to work together to achieve the desired product outcomes (Butola et al., 2021). The success of this Collaboration depends on the ability of the members to come together and share ideas, resources, and processes.

3.1 Embracing Members

The first step to successful supply chain collaboration is to embrace the members of the chain. This means recognizing each member’s different capabilities, perspectives, and interests. It is important to understand that each member brings something unique and should be respected and valued (Thakur & Muralidharan, 2019). This can be done by providing clear expectations and communication and taking the time to listen and understand each member’s point of view.

3.2 Empowering Members

The second step to successful supply chain collaboration is to empower members to take an active role in the process. This can be done by including them in decision-making processes, providing them with the necessary resources and information, and engaging them in conversations and problem-solving. It is also important to recognize and reward members for their contributions (Sadoi et al., 2022).

3.3 Involving Members

The third step to successful supply chain collaboration is to involve members in the process. This can be done by encouraging them to provide feedback and suggestions and allowing them to participate in developing and implementing strategies. This will help ensure that the company’s goals and objectives are met and that the supply chain works as efficiently as possible.

3.4 Mobilizing Members

The fourth step to successful supply chain collaboration is to mobilize members. This can be done by providing them with the necessary tools and resources to take action. This can include developing strategies and plans, coordinating activities, and providing support. By mobilizing members, the company can ensure that everyone is working towards the same goals and that the supply chain is functioning optimally (Thakur & Muralidharan, 2019).

4.0 Cultural Challenges in the Collaboration between the IKEA HACKS store and the Ashley Furniture store.

The Collaboration between the IKEA HACKS store and the Ashley Furniture store involves different organizations from different cultures (Butola et al., 2021). This could create several cultural challenges that could impede the success of the Collaboration.

Language Barriers: The two companies come from different cultures and countries, so they may not speak the same language. This can create communication barriers, making understanding each other’s needs and expectations difficult.

Different Approaches to Business: The two organizations may have different approaches to running their business. For example, IKEA HACKS may use a more flexible approach, while Ashley Furniture may be more rigid and structured (Sadoi et al., 2022). This can lead to conflicts when trying to reach an agreement.

Different Expectations: The two organizations may have different expectations regarding meeting deadlines, quality control, and other aspects of the Collaboration. Without a common understanding of expectations, it cannot be easy to meet the goals of the Collaboration.

Different Work Ethic: The two organizations may have different work ethics, leading to misunderstandings and conflicts. For example, IKEA HACKS may emphasize creativity and innovation, while Ashley Furniture may focus more on efficiency and productivity (Sadoi et al., 2022).

To successfully manage these cultural challenges, it is important for both organizations to be mindful of cultural differences and to work together to establish a common understanding. This can be done through effective communication, Collaboration, and compromise. The two organizations can create a successful collaboration by recognizing and respecting each other’s culture.

5.0 Actions to be Taken in Tackling the Cultural Challenges

5.1 Adaptation

Adaptation is an important strategy to help IKEA HACKS store Company manage across organizational and cultural boundaries. Adaptation involves understanding and adapting to the norms and expectations of the new culture (Butola et al., 2021). Examples of adaptation strategies used by IKEA HACKS store Company include:

Developing a process for hiring and training employees from different cultures ensures that their knowledge and experience are valued.
Creating a diverse workplace culture that encourages open dialogue, mutual respect, and understanding across cultures.

Establishing a code of conduct that is appropriate for all cultures.

Introducing cultural awareness and sensitivity training for employees.
Encouraging employees to engage in cross-cultural team-building activities.
Developing communication strategies that are customized to different cultures.

Creating a global communications strategy that emphasizes shared values, common goals, and mutual respect.

5.2 Structural Intervention

Structural intervention is a strategy that IKEA HACKS store Company may use to manage across organizational and cultural boundaries. Structural interventions involve changing the organizational structure to ensure that it is better suited to working with people of different cultural backgrounds (Butola et al., 2021). Examples of structural interventions used by IKEA HACKS store Company include:

Creating separate departments to focus on different cultures.
Establishing an international task force to develop global strategies.

Developing a system of dual reporting structures to better facilitate communication between different cultures.

Creating a rewards system that is based on performance, not cultural background.
Developing cultural guidelines for business operations.
Implementing a global system of standards and quality control.

Establishing an international team to manage cross-cultural projects.

5.3 Managerial Intervention

Managerial intervention is a strategy that IKEA HACKS store Company may use to manage across organizational and cultural boundaries. Managerial interventions involve making changes to the management style to ensure that it is better suited to working with people of different cultural backgrounds (Butola et al., 2021). Examples of managerial interventions used by IKEA HACKS store Company include:

Developing a leadership style that is inclusive of different cultures.
Providing training and development for managers to help them understand different cultures.

Creating a system of mentorship to help managers learn from their peers.

Encouraging managers to seek input from employees of different cultures.
Implementing a system of cultural competency assessments for managers.
Establishing a policy of cross-cultural feedback and evaluation.

Developing an international management team to help facilitate communication between different cultures.

5.4 Exit

Exit is a strategy that IKEA HACKS store Company may use to manage across organizational and cultural boundaries. Exit involves terminating the relationship with a supplier or customer if cultural issues become too difficult to manage (Attaran, 2020, July). Examples of exit strategies used by IKEA HACKS store Company include:

Terminating contracts with suppliers or customers if they are unable to meet cultural requirements.
Discontinuing business relationships with suppliers or customers that do not respect cultural differences.

Developing a system of cultural audits to ensure that cultural requirements are being met.

Creating a process for resolving disputes with suppliers or customers based on cultural differences.
Establishing a policy of transparency and respect when dealing with cultural issues.
Developing a system of cultural sensitivity training for employees.

Creating a system of exit interviews to ensure cultural issues are properly addressed.

6.0 Goal Compatibility:

IKEA HACKS store company is a global business that operates in multiple countries and cultures. It is important for the company to ensure that its goals are compatible with the goals of its partners and customers in different countries and cultures. To achieve this, IKEA HACKS store company should ensure that its goals are clearly communicated to all stakeholders, that its strategies are tailored to the needs of each country and culture, and that its policies are in line with local regulations. Additionally, the company should strive to build strong relationships with its customers, partners, and suppliers in order to create an environment of cooperation and trust (Gyimah-Concepcion, 2019).

7.0 Goal Incompatibility:

IKEA HACKS store company must be aware of the potential for goal incompatibility in the different countries and cultures in which it operates. This can occur when the goals of the company do not align with the goals of its partners and customers. In such cases, IKEA HACKS store company should be open to discussions and compromise in order to reach a mutually beneficial agreement (Thakur & Muralidharan, 2019). The company should also be willing to adjust its strategies and policies in order to accommodate the needs of different countries and cultures.

7.1 Coercive Power:

IKEA HACKS store company may use coercive power when trying to reach agreement with partners and customers in different countries and cultures. Coercive power is the use of threats, punishments, and rewards to influence the behavior of others. IKEA HACKS store company should use coercive power sparingly and only in cases where it is absolutely necessary in order to reach a mutually beneficial agreement. (Schultz et al., 2023)

7.2 Non-Coercive Power:

IKEA HACKS store company should also be open to using non-coercive power when managing across organizational and cultural boundaries. Non-coercive power is the use of persuasion, negotiation, and communication to influence the behavior of others. This type of power is more effective in creating an environment of cooperation and trust between the company and its partners and customers. IKEA HACKS store company should strive to use non-coercive power whenever possible in order to reach agreements that are beneficial for all involved parties (Sadoi et al., 2022).

8.0 Conclusion

In conclusion, IKEA HACKS store company is a global business that operates in multiple countries and cultures. In order to succeed, the company must manage across organizational and cultural boundaries. This paper discussed the strategies that IKEA HACKS store company can employ to effectively manage across organizational and cultural boundaries and ensure successful operations. These strategies include adaptation, structural intervention, managerial intervention, and exit strategies. Additionally, the company must be aware of the potential for goal incompatibilities and be willing to use both coercive and non-coercive power when necessary. By employing these strategies, IKEA HACKS store company can ensure that it is able to effectively collaborate with its partners and customers, regardless of their cultural backgrounds.

9.0 References

Arzoo, M. Z., Hassan, M., & Butola, R. (2021). Recent Advancements in Supply Chain Management. Risk management, 9(4).

Attaran, M. (2020, July). Digital technology enablers and their implications for supply chain management. In Supply Chain Forum: An International Journal (Vol. 21, No. 3, pp. 158-172). Taylor & Francis.

Gyimah-Concepcion, M. (2019). Technology in supply-chain management and logistics: what does the future hold. Technology in Supply Chain Management and Logistics: Current Practice and Future Applications; Pagano, A., Liotine, M., Eds, 183-198.

Thakur, A. D., & Muralidharan, P. (2019). Sustainable Supply Chain Practices in Multinational Organizations. In Ethical and Sustainable Supply Chain Management in a Global Context (pp. 42-56). IGI Global.

Wieland, A., Stevenson, M., Melnyk, S. A., Davoudi, S., & Schultz, L. (2023). Thinking differently about supply chain resilience: what we can learn from social-ecological systems thinking. International Journal of Operations & Production Management, (ahead-of-print).

Yun, J. J., Zhao, X., Kim, S. A., & Sadoi, Y. (2022). Open innovation dynamics of furniture design and function: The difference between IKEA and Nitori. Science, Technology and Society, 27(2), 172-190.