Today, IKEA is the world’s largest furniture retailer and it is also internationally known as home furnishing retailer. IKEA always concern for people and the environment. Besides that, it also responds to the public and customer’s rising concern for sustainability in its choice of product range, suppliers, stores and communication. However, there are still problems faced by IKEA from the aspect of organization development that requires changes to take place in order for the organization to improve efficiency and effectiveness of its existing operations and also to ensure that goals and objectives of the organization can be achieved.

The first problem encountered by IKEA is the size and scale of its global business. IKEA is known as the world’s largest furniture retailer and carries a range of 9,500 products, including home furniture and accessories. It also means that IKEA’S outlet is widely establish in many other countries. Thus, this could make it extremely hard to control in terms of its standards and quality. So they must figure out some solutions to deal with the problem which will bring benefits to whole organization. Also, the quality of the products in each country may be slightly varied from others. For example, some countries where IKEA products are manufactured do not implement the legislation to control working conditions. Hence, this could represent a weak link in IKEA’S supply chain and also affecting consumer’s view towards IKEA’S products. In terms of that, IKEA has to come out with something related to quality management or supply chain management which use to solve the problem.

The second problem faced by IKEA is the challenging time trading conditions in the home furnishing sectors in 2008. To make sure the company keep maintain or increase its productivity, efficiency and flexibility, they decided to downsized their organization structure