Cross Cultural Management in IKEA

Essay by jasonchaoCollege, UndergraduateA, March 2007

download word file, 20 pages 5.0

Downloaded 383 times

As globalization steadily gains momentum in the corporate world, the knowledge of cross cultural management has become looked upon as a necessity rather than an option. With virtually all business today being conducted in or affected by the global environment, understanding management across borders is crucial for a successful company to operate. International managers must have knowledge in all aspects of culture, including the countries economical, political, and legal functions. Containing more than 60 percent of the world's population, no other culture is more important for managers to understand than the Asian culture (Jackson). The large continent of Asia is comprised of many countries, each with their own unique cultures. Of these countries, China and Japan are two global powerhouses in which much of the worlds businesses operate in. These two countries control a large portion of the worlds GDP and also are the leading exporters of the world. For this reason, IKEA, a Swedish furniture company chose to expand their operations into these countries.

History of IKEAIKEA Group was founded in 1943 by Ingvar Kamprad in Southern Sweden. The company was started when Ingvar was only 17 years old and noticed that many of the products people used could have been sold for a lot cheaper if they were bought from the right suppliers. Stemming from that idea, Ingvar began selling items such as pens, wallets, picture frames and jewelry that he bought from Polish suppliers. He sold anything that he felt he could get at a reduced price from over seas. Eventually, he formed the company IKEA, which was originated from his first and last initials of I and K along with the first letters of Elmtaryd and Agunnaryd, the farm and village he grew up in. (IKEA)Ingvar made a few strong connections with Polish furniture makers in...