Cross calture issuse in international business Essay

Cross calture issuse in international handicraft - Essay Example to each one group has slightly different opinion. The main step for descent growth IKEA took is to hire non Chinese managers and Chinese co-workers. The cross culture issues in international business Influence of pagan differences surrounded by china and atomic number 63 on IKEA IKEA is an international company owned by non-goernmental organization. IKEA is the abridgment of Ingvar Kamprad Elmtaryd Agunnaryd. each term in its abbreviation has its own history. Ingvar Kamprad is the Swedish 17 years old man who founded this company in 1943. this man was grown up in Elmtaryd and his kin parish is in Agunnaryd. it is the worlds largest retailer that designs and sell knock-down or flat pack furniture, home appliances and accessories. IKEA also launched a family mobile (Aug 8, 2008), a virtual mobile network running on T-mobiles. IKEA is know as one of the best company which does a lot for the third world. It built an i mage for the start price furniture but for the Chinese customers the case was opposite when IKEA opened the first store in Shanghai, China (1998). Most of the Chinese likes to visit IKEA store but they mostly of them just wandered there and altogether few can by the items because of high prices. IKEA tried to low down their price but unagitated their product became luxury for the Chinese customers. In the beginning IKEA had to face many challenges. For success in business it is much necessary to understand the cultural values of the country where you are setting your business. For IKEA, to achieve the dodge goal in china performer to understand the culture and socio-economic conditions of china. In terms of culture and business practices, economical and political changes in china IKEA suffered with many ups and downs. The main issue for IKEA is to understand the environment and cultural difference which influence the Chinese customers behavior. Hofstedes Cultural dimensions Gee rt Hofstede had done the influential work to demonstrate the cultural differences. He identified five major dimensions along which cultural values vary high vs. low world-beater distance, individualism vs. collectivism, masculinity vs. femininity, and uncertainty avoidance vs. uncertainty acceptance and short-term vs. long-term orientation. Difference between china and Sweden culture In china culture dominant values in society are masculine. Caring of others and the quality of people and life are not so important but the importance is given to the assertiveness, acquisition of money and things. In china society muscularity, assertiveness and challenges are preferred over co-operation and good working relationship. Another important cultural trait of china is the high power distance. This means that the distance between subordinates and superiors in china is relatively high then west. We can consider it as a shape of narrow triangle in which the mangers placed on the apex while sub ordinates on the base. The management is not so common or in practice. This high power distance is essentially roots from the imperial tradition in china. Until 1911, the emperors were given so high value that extremely they were called the sons of god. This resulted as an unequal relationship in the society. The subordinates are restricted to obey and owe their superiors in exchange for protective covering and consideration (Sriramesh, vercic, 2003, p 26). The local government institutions in china are powerful and mostly they turn on discretion. This is the main