Candidate Number: 1305248
Year: 21st Mar 2013
Course Code: MN5131
Course Tutor: Dr Yu Zheng
Assignment No: 1
Degree Title: MSc International Management
Question No. and Title: IKEA Human Resource Management in Chinese Market
Declaration of Academic Integrity: I promise that submitting this work acknowledges that the assignment is entirely my own work and has not been submitted previously for another course or programme at RHUL or any other institution.
When the art of business management has been concerned by IKEA, the concept “Simplicity is beauty” is popular in IKEA’s company culture. For an international enterprise, IKEA have to seek global expansion
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It is clearly close to the IKEA core gist of “simplistic is beauty” but more fashion, environmental friendly and lower price furniture products, make people, at least in European market, IKEA product is a popular and low price household product that suit for low-income people group. However, the position changed in Chinese market due to the income differentiation and cultural factors, IKEA becomes middle-class to top furniture brand chosen by the white-collar people or someone like top brands. Secondly, different location of IKEA store in European market and Chinese market. For example, majority of European families have private car and enjoying shopping to a leisure environment. Whereas, IKEA had to choose store located in city center in Chinese market in order to convenient to people go shopping instead of located in city edge in European market. Thirdly is service problem. IKEA in European market run as self-service store but it is not working well in China because Chinese are much like some salesclerks give them introduction or guidance when shopping, especially, IKEA is a foreign brand for them(Lewis, 2005).
Faced the problems displayed above, IKEA in order to make their product can sale well reflect the problems with two main solutions are focus on add human actions to adopt the cultural differentiation and employee performance to meet