Expanding Ikea into China: An Analysis

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TO: Ikea Board of Directors and Human Resource Managers FROM: I.B Analyst, International Expansion Project RE: Movement into China Globalization has brought the world closer in communication, economics, politics, and especially business. The Internet and technological improvements have allowed instantaneous communication almost anywhere, and even poor women in India are using Smartphones to manage their banking portfolios. The idea of globalism continues to break down cultural barriers. As this continues it will be essential for organizations to not only understand, but embrace cultural differences and styles. Clearly, the changing demands of global stakeholders require new ways of approaching divergent customer bases. There are differences in style, skill, education and attitude in every organization now accentuated when we think of the multi-national organization. Correctly managed, this diversity can be a huge bonus to the organization (Trebing and Estabrooks, 2005). As we think of expanding Ikea into some of the major urban areas of China, there are a few issues that might be helpful in organizing training and strategic planning. From the end of World War II to the early 1970s, China was relatively isolated from the global landscape. It was a part of the Soviet Communist Bloc, but remained inwardly focused on improving its own infrastructure and economy, all the while poised for rapid modernization. Openness towards the West began around 1978 with increased trade,
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