Read: The Global Challenge: Chapter 6
Case: IKEA: Past, Present, and Future
Case assignment questions:
1. How does IKEA’s culture support its global business strategy? How can a company steeped in its own national heritage and culture adapt when expanding internationally? The most challenge for IKEA’s culture to support the global business is how to delivery their cultural implications to the global. To hire and train a large number of new staff every year to be fit for their growth become very important for their day to day life. The company has largely focused of values, even in the selection process of the new employees. They also try to foster the unity among workers and avoid hierarchies. The company has been very decisive in responding to its problems. It has always taken a firm stand to uphold its values. In countries like Russia and France, the employees in high positions were fired. For instance, in France people holding the positions of country head, head of human resources, risk manager, and finance director were fired (Milne, 2012). In France, the ethics committee has been created and the workers had to go through a workshop on company’s values. IKEA’s spokesmen have also openly recognized the problems of the company, which is important. IKEA has its own particular organizational culture with which it is distinguished from other companies. Organizational culture of each company is a set of its own values, beliefs, habits, symbols, common rules and structures of that specific company. Since the collection of organizational culture defines the way of interacting with internal and external groups and/or individuals including company colleagues, customers, clients, partners and suppliers, it is significant to examine IKEA’s most dramatic norms and systems. Although many IKEA managers tried to define IKEA’s organizational culture based on their own points of view and personal experiences, there are some general strong features which were noted by most...
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