Cross Cultural Issues of Ikea's Operation in Different Countires

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Cross cultural issues should be carefully considered whilst IKEA is operating as different countries will have different values, beliefs and attitudes. This would help ensure IKEA is operating ethically and responsibly within their countries of operation. Cross Cultural issues are an example of a major factor which encourages the success of multinational businesses.
A majority of successful businesses have increased their competition and emerged into more countries. Multinational companies such as IKEA are benefited in a way, that cross-cultural differences are made aware and experienced within all their countries of operation. IKEA will experience strengths and weaknesses which can be either beneficial or disadvantageous and these are usually manifested through changes concerning PESTLE factors.
With the current recession and different countries developing and altering their overall business practices, this is affecting international businesses like IKEA and national businesses like Nissan in terms of expansion and cultural differences. IKEA would need to be change adaptable, in order to keep up-to-date with changes and stay competitive. Being change adaptable will help IKEA in circumstances, which include changes in behaviour, beliefs, customs or communication. According to Schwartz et al. (2008), culture is proven to be a critical factor which plays a key role in the development and performance of various businesses which include IKEA.
Whilst IKEA originated from Sweden, they have been successfully developing and expanding their operations into other countries. At present they operate in 33 countries and this helps them understand more into the countries overall economy and culture differences in the way things are done. Cros...

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... B&Q and similar furnishing companies.

3.6 Franchising opportunities
IKEA can consider franchising as it will help expand their customer base and become more ethical during their operations. Franchising would help expand their operations into other countries without the risk of debt or the cost of equity (Entrepreneur, 2004). IKEA is franchised by Inter IKEA Systems B.V. of the Netherlands (Inter IKEA Systems B.V, 2012e). Franchising has helped IKEA meet cross-cultural issues and create suitable policies and procedures (Schneider and Barsoux, 2003). Whilst IKEA have been expanding their operations through franchising, it has been found that the different product designs have influenced cross-cultural differences. Based on this, culture has an impact on the product design, so IKEA have ensured the products and design are appropriate for their diverse customer base.

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