Assignment: International Relations
Added on 2021-06-17
12 Pages3729 Words125 Views
RUNNING HEAD: International relations 0IKEAInternational relations
International Relations 1ContentsIntroduction...........................................................................................................................................2Background...........................................................................................................................................3Discussion.............................................................................................................................................3Sourcing expatriates for international assignments............................................................................3Development of expatriates for international assignments....................................................................5Performance management.....................................................................................................................6Findings and conclusions.......................................................................................................................8Recommendations.................................................................................................................................8References.............................................................................................................................................9
International Relations 2Introduction This report presents a literature review of the research related to the international human resource management practice areas of well-known company IKEA. It includes the operations and corporate strategies of the company along with its workforce management practice. This report will focus on identification of the firm’s expatriation practices that are required to be improved for sustainable and successful business operations of IKEA in the market of China and Australia. IKEA Company maintains their operations in the diverse market due to which they might face different cultural contexts. Along with this, managing the business in different countries might leads to tension for the multinational company whileadopting standardize the global practices versus localized practices in the IHRM. The report includes the research based on the scholarly literature and articles which guides aneffective way to IKEA’s e to improve its expatriate management practices in Australia and China. The three major aspects of management of expatriate employees that are discussed in the report include sourcing, development and performance management. These aspects are IHRM practices performed by the company in the two host countries. Therefore, these practices are considered for analysing the areas of improvement in workforce management. Along with this, these practices help the company in generating the competitive advantage in these countries.
International Relations 3Background IKEA is a Swedish founded group. It makes life easier by designing home easier and comfortable. IKEA provides ready to assemble furniture, kitchen assembles and home accessories. It is one of the largest furniture retailers since 2008. The company is best known for the unique designs for appliances and furniture (Sarstedt, Neubert & Barth, 2017). The company relies on the principle to grow by using it’s own resources. The vision of IKEA is tocreate a better everyday life at home. The company reinvests it’s profits in the stores, product development, sustainable solutions and in lowering prices for customers. The company focuses on the sustainable growth by spending before earning money. It makes sure that the company is accessible to make every day better. The corporate structure of company is divided into two parts, operations and franchise. The management, design and manufacturing of furniture are overseen by INGKA holding which is a Dutch profit making company. IKEA owns 415 stores in 49 countries. IKEA is engaged in the retail distribution of furniture. IKEA is the most frequent furniture retailer in Australia. The company owns the exclusive range to develop product range of IKEA in Australia (Daunfeldt, Mihaescu, Nilsson & Rudholm, 2017). IKEA entered in China in 1988 with it’s first store in Shanghai. It brings unique style and sales model to China. The company implements it’s criteria by considering good design, functionality and low price. IKEA faces challenges in the both countries Australia and China. The company faced challenges in relation to workforce management of company in Australia. It faced problem for the prices offurniture in China. The challenges faced in Australia are less than China. It comes across to greater challenges in China. China is a complex country due to the population, infrastructure and culture. To meet these challenges China has made changes in it’s market activities (Laurin & Fantazy, 2017). Discussion The HRM practices are addressed to deal with the expatriate employees: Sourcing expatriates for international assignments The expatriates are hired by IKEA for the international assignments. There are some factors which lie among management of expatriates particularly in Australia and China. Workforce planning
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