The Difference Between Traditaional and Nowadays Hrm

By Johnny C.H. Lok

IKEA organizational culture influences whether it's China furniture market in success?Why does IKEA management cultural diversity needs to regard its staffs in China challenge? Multinational company, such as IKEA furniture company aims to increase profitability and it also needs to seek to for solutions to problems related with the saturation of existing markets, it needs to make an effort to expand operations to overseas market, such as China. However, it will face cultural difference challenge to be needed to deal if it want to enter China furniture sale market successfully.Kumar, S. (2005) indicated IKEA is the world's largest furniture retailer since the early 1990s. It offers a wide range of well- designed, functional home furniture products at low prices as many people as possible will be able to afford them. However, IKEA planned to enter China market, but it will face the cultural difference challenge between China and itself Swedish regional cultural of their staff communication and co-operational relationship.In deed, the "IKEA" facilities its successfully international expansions, it needs to combination vision, characteristic leadership and business principle between China and Swedish culture effectively. IKEA opened its first store in China in 1998. Although, the company has succeeded with their global strategy in the past in most of the markets, it has entered, it quickly learnt the success in the Chinese market required a different strategy in the areas of marketing and HR ( Kumar, 2005, p.2).What are the cultural difference to influence IKEA's success to develop furniture sale in China market? The standardized strategy which is adopted by IKEA could lead to some disadvantages because Swedish managers are needed to send to other branches in other countries in other to ensure the IKEA way is implemented in the local areas. Thus, it brings the conflict between the Swedish management and local employees could occur due to the cultural differences. Especially, in the country like China where the traditional cultures and value are different to such as Swedish culture. So, Chinese employees will have their mind for long a working culture differs from the Swedish way that IKEA wants to influence to their employees, problems were unavailable.When IKEA were keen to increase revenue in Asian markets like China, they faced the challenge to mange their staffs from the conflicts and the diversity of Chinese cultures, such as how to train people within IKEA perform in a standardized format to keep its essential value, and how to avoid the misunderstanding when improve employee performance and understanding the importance of cross cultural management between Sweden and China. So, IKEA managers definitely have responsibilities to spend time, energy and effort to understand the differences of national corporate and functional cultures before starting an arranging the strategic plans in China furniture sale market.The another cultural difference challenge concerns China and Sweden both countries have problems on law, price competition, information, language, delivery, foreign currency, time differences and cultural differences etc. different aspects. Thus, such as this IKEA Sweden furniture international company plans to enter China furniture sale market. It will have great barriers are caused by cultural differences, such as difficulty of communication, higher potential transaction costs, different objectives and means of cooperation and operating methods.

• Format: Paperback
• Language: English
• ISBN: B08NDVKM94
• ISBN13: 9798564397087
• Release Date: January 1
• Publisher: Independently Published
• Length: 74 Pages
• Weight: 0.36 lbs.
• Dimensions: 0.1" x 8.0" x 10.0"