Cross Cultural Management in IKEA

This assignment had to be written for the class of Management and Organizations at Stenden University, course IBMS, first year. We had a group of 6 and had to work it out together. We were enjoying getting into the world of IKEA, the world’s most furniture store on the market.

IKEA is a privately held, international company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer.

Globalization and technological advancement have dictated the need for managers to deal with multiple ethnic groups with different culture in their day to day interactions. According to Kulkarni (2012), cultures play critical roles in individuals, including values, beliefs, humor, worries, fears, hopes, opinions, attachments, and anxieties.

country and business values. Even the research emphasis on the cultural values, issues related to business that can affect business relations. It also tells about the business styles of Japanese. As compared with Canada it is found that Japanese are collectivists and poly-chronic in nature. Moving on there is no problem related to language as most of the Japanese speak their own native language. In this report it is recommended that Jell-O should do the promotions keeping in mind the family system of Japan. The other main point to be kept in mind before doing business

     Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum

Cultural differences between countries have strong effects on individual personality and behavior, as well as on organizational culture (Hofstede 2001). These differences can be a significant barrier for an international business leader. Failure to understand and adapt to these differences may

One of the most important facets for a successful business in the twenty-first century is how it communicates with their customers, partners, suppliers and governments from different countries and cultures from around the world. For a business to operate with any modicum of success in Japan, you must possess a basic understand of how their society functions. As a result of learning about the geography, climate, history, religion, cultural rituals, politics, education system, and the role of the family; it will allow a business or business person the insight needed to understand how society functions and the method in which business is conducted.

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

Mismanaging cultural differences can render otherwise successful managers and organisations ineffective when working across cultures. As stated byOsland (1990, p. 4) ``The single greatest barrier to business success is the one erected by culture''. Hofstede (1983) defines culture as "the mental programming of the mind which distinguishes the members of one human group from another" (Hofstede 1983 p. 25). Through the comparison of Chinese culture and Australian culture using Hofstedes five cross-cultural dimensions: power distance, uncertainty avoidance, masculinity, individualism, and long-term orientation an insightful view into the differences and similarities of the cultures can be obtained (Chong & Park 2003). Human Resource Management

With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.

Both the authors have taken descriptive approach to elaborate in detail their respective areas of cross cultural management. As per article, “Rethinking Cross Cultural Management in a Globalizing Business World” by Soderberg & Holden (2002), due to globalisation and its increasing trend, the organisations and its environment has gone through significant changes. Thus the traditional way of defining the cross cultural management needs amendments. Further the author has elaborated that in this commitment the authors are contending for a split far from the conventional method for considering and portraying diverse administration for two fundamental reasons. To begin with, the winning idea of society as-substance, which in this logical connection is vigorously connected with national societies (and, by augmentation, country states) is distant with the hypothetical improvements of conceptualization of society and character. Moreover a conceptualization of hierarchical and national society’s too characterized and homogeneous substances is out of stage with the new economy, with its accentuation on systems administration, hierarchical learning and information as the fundamental hierarchical asset, which rises above firm, industry, and national limits. Second, the new economy requires not simply new skills and 'worldwide education but also needs to adopt 'the worldwide attitude'. A globalizing business world too needs suitable calculated apparatuses and expository methodologies of advantage to both analysts besides, specialists. Consequently the article “Cross cultural Differences in Management” by Amman & Jordan (2012) has concluded that due to cross cultural environments, the managers can encounter different impact on different areas of management. These impacts can create many limitations and barriers on different areas of business. Therefore, managers of the

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

The strategy of the IKEA group in Russia was to invest in a market which can give a big profit in a long-term. While the other foreign companies started leaving their businesses from Russia, Ingvar Kamprad saw a big opportunity there, and started investing in the Russian market. The result was good, in Ingvar’s words: “IKEA becomes the main supplier of home furniture to the normal Russian families and our sales in Russia will exceed those in our old home country Sweden” (International Marketing, N. Ghauri & Cateora, 2010). The fact that Ingvar was the only owner who wanted to keep his company in Russia may give IKEA more power and a better competitive advantage in the future.

Based in Denmark, IKEA International A/S is one of the world 's top retailers of furniture, home furnishings, and housewares. The company designs its own items, and sells them in the more than 140 IKEA stores that are spread throughout approximately 30 different countries worldwide. The company also peddles its merchandise through mail-order, distributing its thick catalogs once a year in the areas surrounding its store locations. IKEA is characterized by its efforts to offer high-quality items at low prices. To save money for itself and its customers, the company buys items in bulk, ships and stores items unassembled using flat packaging, and has customers assemble many items on their own at home. The company is owned by

This paper is a report on cross-cultural management, with the issues related to cross-cultural management being discussed in the paper. Additionally, the report has produced the future way of cross-cultural management, including how it can be improved in offices relying much on this strategic approach.