IKEA is a European company and its business and organisational culture differs with Chinese culture. Hence, it has to face multiple hindrances in controlling the Chinese market. Besides, the government’s trade policies for MNCs are another major issue for IKEA in offering lower cost product and hence, it becomes difficult for the company to compete with other domestic furniture manufacturing companies. There are two major problems in IKEA for its China market that includes cross cultural communication gap and government policies. In this process, the primary aim of IKEA is to understand the core Chinese culture which must be blended with IKEA organisational culture. Understanding of local culture is inevitable for IKEA. Therefore, it should develop its internal organisation’s culture and communicational process by implementing integrated marketing communication model. It also needs to achieve higher efficiency of its multinational teams, and IKEA should try to increase the number of Chinese employees to understand and convince target consumer group. Besides, government’s support is also very essential for IKEA so it must increase its activities relating to corporate social responsibility. Introduction Globalization has brought significant changes in human activities and their lifestyles. It has led to accelerate the growth and development of entire world economies and societies. Trade and business activities are one of the most crucial areas that have experienced tremendous growth since last two decades. The increasing global exchanges enhanced the importance of international trade and policies. Besides, the business agreements and treaties have facilitated the international communication and business activities. These reasons have provided greater opportunities to business organisations and hence, they keep expanding their geographical boundaries i.e. in overseas market. However, in this process, multinational companies (MNC) have to counter certain hindrances that affect efficiency of management. Cross cultural diversities and communication gap are the major challenges for MNCs (DuBrin, 2008, p.66). This paper will attempt to analyse a case of a multinational company facing hindrances in managing its international division ion a culturally diversified country. This paper will analyse major factors behind such issues and will provide a relevant solutions and recommendations. Finally, the entire discussions, analyses and outcomes will be concluded. Terms of Reference This paper will provide a description and solutions of problems faced by IKEA in Chinese market due to political, social and business cultural differences. IKEA is a world renowned furniture manufacturing company and it has expanded its market in China. Currently, this multinational company is facing problems in its Chinese market and hence, it has asked to prepare a report addressing the major causes for such issues in China. The company also needs proper strategic solutions and recommendations to counter these issues facing in Chinese market. Overview of the Situation Overview of Company IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a Sweden based, private holding multinational company and it is the largest furniture manufacturer in entire UK and Europe. The company was founded by Ingvar Kamprad during 1943. Initially, IKEA used to sell pens, tables, picture ...
Cite this document
(“COMMUNICATION IN BUSINESS - case study format Essay - 1”, n.d.)
Retrieved from https://studentshare.net/environmental-studies/16060-communication-in-business-case-study-format
(COMMUNICATION IN BUSINESS - Case Study Format Essay - 1)
“COMMUNICATION IN BUSINESS - Case Study Format Essay - 1”, n.d. https://studentshare.net/environmental-studies/16060-communication-in-business-case-study-format.