Cross culture - msc.pef.czu

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					 Cross-cultural and diversity
            issues




Group X
Igamberdieva Inobat
Kalko Olga
Mifkova Veronika
Moravova Barbora
Shamota Liudmila
IKEA
• Founded in Sweden
• Furniture distributor with worldwide presence
• Offers furniture of decent quality with no delays in
  delivery
• Many of IKEA’s innovations have become industry
  standards ( logistics, cash & carry system,
  catalogues)
• Unique product design capabilities
• Unprecedented loyalty among its customers and
  employees
• Vertical integration as a competitive advantage
• The “IKEA Way” – doing things differently
The IKEA Way
• Balance between the optimal product design for low
  prices and suppliers need for profit through efficiency
  and long production runs
• Balance of strategic sourcing and marketing mix
• Specific design with universal appeal throughout the
  markets of the world
• Flexible in establishing parameters for international
  offices, but strongly sticking to Swedish cultural roots
• “Learning by doing”
• Informal, open and caring management style
  (hierarchy is not emphasized)
IKEA’s Swedish management style

• Egalitarian management style - strong
  preferences for informal relations regardless
  nationality
• Swedish managers are ambassadors of “IKEA’s
  mission” who help international coworkers
  understand the uniqueness and the nature of
  the company
• IKEA’s managers welcome participation in
  making decisions and taking responsibility by
  the employees of the company
IKEA in the world




Source: http://upload.wikimedia.org/wikipedia/commons/thumb/a/a1/IKEA-map.png/800px-IKEA-map.png
IKEA in Germany
• The largest national organisation in the IKEA
  group
• Germans prefer precisely defined rules and
  instructions to “taking on responsibilities for
  yourself”
• Seeing the Swedish management as more
  target-oriented, not sufficiently assessing
  risks before taking actions
• Formal procedures and administration
  provide Germans with security.
IKEA in USA
• Different attitude of Swedish and American workers
  towards the emotions on the workplaces
• Cultural differences and emphasis on being Swedish
  made IKEA too complicated and difficult to adapt for
  Americans
• Americans expect managers to tell them what to do
  and to take responsibility for decision making
• American style implies detailed analysis of individual
  strengths and weaknesses, not shared by Swedish
  managers
• IKEA is considered to be more employee-oriented
  than average American employers
IKEA in Russia

• Necessity of hierarchy and strictly defined
  framework
• Adapting to Swedish style faced a lot of
  obstacles (motivation, making decision
  procedure, etc.)
• Russian way of employing people: emphases
  on diplomas and degrees rather than on
  specific personal qualities (Swedish style)
Problems and solutions
• Swedish style can’t be implemented globally
    it should be more flexible to local features.
• Career ladder should be more opened for
  nationalities different from Swedish
• “You can’t be in a hurry to move up the
  ladder” approach is not acceptable across all
  international offices of IKEA. It demotivates
  people.
   special award system should be created
  for the prominent employees.
Problems and solutions
 • IKEA provides its employees with
   possibilities to participate in daily decisions
   and take responsibility, that gives them a
   feeling of being important within the
   company. However, IKEA doesn’t offer
   enough opportunities for personal growth.
    personal inputs of employees shouldn’t
   be undervalued (work experience,
   successfully implemented innovations and
   decisions offered by individual, etc.)
Thank You for Your
    attention!!!
Questions, please!!!
References
• P. Grol, C. Schoch: IKEA: Managing Cultural
  Diversity. Centre of Perfektionnement aux
  Affaires, Paris, France, 1997
• http://upload.wikimedia.org/wikipedia/common
  s/thumb/a/a1/IKEA-map.png/800px-IKEA-
  map.png
• The IKEA Way
   http://www.theikeaway.ca/en/wwd.html

				
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posted:7/18/2012
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