Step 1: List of all 9 “S” dimensions
1. Strategy
2. Structure
3. Systems
4. Shared Values
5. Style
6. Staff
7. Skills
8. Strategic Performance
9. Strategic Positioning
Step 2: Key Misalignments in IKEA India (2–3 sentences each)
1. Strategy
IKEA India aimed to replicate its global large-format store model without fully adapting to local housing
norms and shopping behavior. Product-market fit suffered, particularly for bulky furniture that didn’t
suit compact Indian homes. Despite the “India Market Labs” initiative, strategic localization was reactive
and under-resourced.
2. Structure
Dual reporting lines created friction between local and global teams, leading to accountability gaps. The
overlapping KPIs and unclear ownership in key functions like pricing vs. promotions show misaligned
internal roles. Structural rigidity slowed responsiveness in a fast-evolving market.
3. Systems
Fragmented inventory platforms between Indian fulfillment and global operations caused significant
delays and visibility gaps. Lack of automated integration until 2021 worsened supply chain agility.
Operational systems also lacked sync with local cycles, such as European communication schedules
misaligned with Indian reporting.
4. Shared Values
While “togetherness” and “simplicity” were core values globally, these felt abstract to Indian employees,
many of whom came from hierarchical organizations. Cultural disconnects reduced cohesion, especially
between global hires and local managers. The failure to embed these values meaningfully limited shared
identity.
5. Style
The leadership approach was top-down and heavily influenced by global headquarters, leaving local
teams feeling unheard. Internal surveys revealed that only 32% felt their inputs were valued by global
leadership. The absence of an empowering, locally nuanced leadership style reduced morale and
engagement.
6. Staff
High middle-management turnover (24.7%) signaled stress and role confusion. Exit interviews pointed to
limited localization authority and unclear escalation paths. Training programs were delayed due to the
absence of translated/localized content, hampering capability building.
7. Skills
Mismatch between required execution capabilities (localized merchandising, flexible supply chain
handling) and existing staff skill sets became clear post-launch. Lack of dedicated cross-functional staff
for initiatives like “India Market Labs” revealed weak resourcing in critical innovation areas.
8. Strategic Performance
Key indicators like footfall (-34%) and NPS (dropping from 74 to 59) reflected serious performance
misalignment. Despite strong brand awareness, the conversion to large-ticket sales and online
fulfillment lagged, indicating that strategy execution wasn’t yielding expected outcomes.
9. Strategic Positioning
The brand positioned itself as a global home solutions provider but failed to align this with Indian
customer needs for smaller, space-saving, and modular solutions. With 45% of purchases limited to food
court items and accessories, the disconnect between brand promise and local relevance was apparent.
Step 3: How do the two Bennett additions reveal alignment issues that the classic 7-S model would
likely overlook? (130 words)
The Bennett additions — Strategic Performance and Strategic Positioning — spotlight the real-world
results and market alignment that the classic 7-S model tends to miss. While the original 7 elements
help diagnose internal mechanics, they don’t fully capture whether the strategy is actually
working or how the company is perceived externally. In IKEA India’s case, performance metrics like
declining footfall, low online conversions, and falling NPS offer hard evidence of misalignment.
Meanwhile, the strategic positioning misfire — offering European-sized furniture in small Indian
apartments — exposes how branding and customer targeting missed the mark. Without these two
lenses, IKEA might falsely assume it’s aligned internally, while the business quietly underdelivers in the
real market.
Step 4: How does influence flow between key elements, and how does this affect overall
alignment? (174 words)
In complex systems like IKEA India, misalignment tends to ripple across elements like a chain reaction. A
global-first strategy misfit trickles into structure, creating dual reporting lines and role confusion. This in
turn affects style, with local managers feeling disempowered. When shared values aren’t translated
meaningfully, cultural integration suffers, weakening staff engagement and accelerating attrition.
At the systems level, operational breakdowns — like non-integrated inventory platforms — cause
missed timelines and affect strategic performance, even if the original strategy appeared sound. The
poor strategic positioning of oversized furniture impacted brand relevance, forcing teams to rework
downstream skills and operations without clear direction.
What’s clear is that misalignment doesn’t stay isolated. A weak link in one “S” — say, leadership style —
influences morale, reporting clarity, and ultimately performance. Without a strong alignment spine,
even great talent and products struggle to thrive. IKEA India’s case proves that in dynamic, culturally
diverse markets, influence flows diagonally, not just top-down.
Step 5: Alignment Fixes — One Action per “S”
S Element Alignment Recommendation
Co-create a localized strategy with cross-functional Indian leadership and customer
Strategy input to redesign offerings for small urban homes.
Flatten reporting lines by empowering a single point of accountability per function
Structure with clearer escalation protocols.
Fully integrate Indian fulfillment systems with global IT, and adapt reporting tools
Systems to Indian market cycles.
Localize IKEA’s values through storytelling, workshops, and examples that resonate
Shared Values with Indian cultural contexts.
Train global leaders in adaptive leadership and empower Indian managers to make
Style decisions suited to local realities.
S Element Alignment Recommendation
Launch localized onboarding and development programs with translated training,
Staff career path clarity, and support networks.
Invest in targeted upskilling (e.g., data-led merchandising, local sourcing, agile
Skills supply chain management).
Strategic Redefine KPIs for India with market-specific success metrics and create feedback
Performance loops to adjust tactics quarterly.
Strategic Reposition IKEA as a “smart space” expert for Indian families, with modular,
Positioning affordable, and locally inspired products.
