Ikea and Its Cultural Diversities
IKEA and Its Cultural Diversities
International business is used to collectively describe all commercial transactions whether it is private or governmental, in terms of sales, investments, logistics, and transportation that takes place between two or more regions, countries, and nations beyond their political boundary. Private companies embark on such transactions for profit. This refers to all those business activities which involve cross border transactions of goods, resources and services between two or more nations. Transaction of economic resources includes capital, skills, and people for international production of physical goods and services such as finance, banking, insurance, and construction. The international business has its own operation wherein its objectives are for sales expansion, resource acquisition, and also risk minimization. International Business also faces physical and societal factors such as political policies and legal practices, economic forces, geographical influences, and most of all the cultural factors, wherein many of the international businesses are facing today (Daniels, Radebaugh, Sullivan, 2007; and Joshi, 2009).
Traders may face many difficulties when trying to introduce their products within another country. Aside from intergovernmental issues, the most common issue faced by businesses is cultural problems. The business does not fully understand the nature of the market that they are entering. Issues of language and culture should never be underestimated since they can also lead to substantial shortfalls in business or diminished profits if not addressed beforehand. A case study of IKEA is an example of one international business which experienced such business failures due to cultural constrains.
The subsequent history shows that over six decades IKEA went from the woods of Southern Sweden to being a leading furniture retailer giant in the world (Inter IKEA Systems B.V., 1999 – 2011).
IKEA is a Swedish international home
International business is used to collectively describe all commercial transactions whether it is private or governmental, in terms of sales, investments, logistics, and transportation that takes place between two or more regions, countries, and nations beyond their political boundary. Private companies embark on such transactions for profit. This refers to all those business activities which involve cross border transactions of goods, resources and services between two or more nations. Transaction of economic resources includes capital, skills, and people for international production of physical goods and services such as finance, banking, insurance, and construction. The international business has its own operation wherein its objectives are for sales expansion, resource acquisition, and also risk minimization. International Business also faces physical and societal factors such as political policies and legal practices, economic forces, geographical influences, and most of all the cultural factors, wherein many of the international businesses are facing today (Daniels, Radebaugh, Sullivan, 2007; and Joshi, 2009).
Traders may face many difficulties when trying to introduce their products within another country. Aside from intergovernmental issues, the most common issue faced by businesses is cultural problems. The business does not fully understand the nature of the market that they are entering. Issues of language and culture should never be underestimated since they can also lead to substantial shortfalls in business or diminished profits if not addressed beforehand. A case study of IKEA is an example of one international business which experienced such business failures due to cultural constrains.
The subsequent history shows that over six decades IKEA went from the woods of Southern Sweden to being a leading furniture retailer giant in the world (Inter IKEA Systems B.V., 1999 – 2011).
IKEA is a Swedish international home