IKEA in China Essay Example | Topics and Well Written Essays - 2750 words

IKEA in China - Essay Example The corporations decide to enter into new country to capture the new market and in this process they primarily focus cross cultural factors for building multicultural teams. However, they have to face several difficulties due to mismatch of organisation culture and social culture (Rajagopal, 2007, p.8). This paper will attempt to analyse distinct features of cross cultural differences affecting international trade in context of IKEA’s business in China. To offer basic understandings and interpretations of cross cultural difference, some relevant models and concepts will be critically analysed and discussed. This paper will also include the basic difference of Swedish and Chinese cultures. Role of expatriate managers in managing multi-national corporations will also be discussed. Finally, the paper will end by summing up the entire discussions and findings. IKEA is a privately-owned global furniture company. It is a Sweden-based company and founded by Ingvar Kamprad who started to sell matches at the age of seven during 1920. During 1940-1950, he entered into the furniture business and the business experienced a rapid growth within a short span of time (IKEA-a, 2010). Currently, it offers large varieties of furniture for domestic and commercial purposes. It also provides furniture for children (IKEA-b, 2010). IKEA has expanded its business in the global market and it is present in the entire Europe, North America, Middle East and Asia pacific regions. The business idea of IKEA focuses on its core value, product range, low price and betterment of everyday life of its valuable consumers (IKEA-c, 2010). Business and culture are inter-related with other and hence, before presenting critical analysis of cross culture, expatriate management and multicultural operations. The national culture is the prime factor that affects the culture of an organisation and its behaviour.