IKEA Management In China

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IKEA management in China
The organization type in IKEA is flat organization which the gap between manager level and employee is little. IKEA facing the problem on management when they came to China because China is strong in hierarchy management. The power distance among the manager or leader with employees is very high. The manager or leader always received extremely huge respect from their workers in China. The workers just listen and follow the order or instruction given from their manager or leader. They do not dare to say anything and give opinion. The gap between managers and workers in Sweden is very close but it is big difference
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They want to build IKEA in China and not Chinese IKEA because they believed that Swinishness will make different in China due to no home furnishing companies in China at that time able to do it. The products they introduced to China market with taste and flavor of Swedish. Example the Swedish dishes. With this strong value, IKEA facing the challenge in human resource management and recruitment. They tough to look for right people in China who adapt to IKEA value such as willing to change, accept different working culture and willing to learn and take more responsibilities. The people from the China culture is not willing to learn , change and take more responsibilities. It is a tough challenge to IKEA to hire people who would work follow IKEA Way to fulfill company vision and business …show more content…
The challenges such as the entry of new competitors, threat of substitutes, bargaining power of buyers, bargaining power suppliers and the rivalry among the existing competitors. IKEA facing the challenge of price problem where the price is too high to customer China as compare to European. This is due to high exchange rate for importing and duty tax incurred to China. IKEA facing the different demographic and needs of customers in China as compare to European. IKEA had to face the challenge from existing competitors which offer a lower price furniture. The customers from China still not able to afford the higher price offer by IKEA. The IKEA brand acceptance is not good by people in China in the beginning because of the European style and do not provide free transport service and installation service. The products offered by IKEA is in DIY culture and it is not welcome by people in China as compare to European. The people from China more prefer to have the furniture complete assembled. Others, IKEA also facing the challenge on copycat culture in China where their product may copy and produced by competitors and selling in lower price. A lot of fake

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