Significance of Managing Cultural Diversity in Improving Business Performance

Research Project
(Equality and diversity)

Executive Summary
Main purpose of this research project is to identify the significance of managing cultural
diversity in improving business performance. In order to attain this, various activities done by
investigator. Literature review was completed by using books, articles, journals and many other
secondary sources relevant to the topic. Research methodology also completed by applying
deductive approach, questionnaire, positivism philosophy etc. methods. These helped in
gathering of quantitative information that results in accomplishment of research aim and
objectives in successful manner. Conclusion and recommendations are completed by covering
information about the entire activity in short and clear manner. Some recommendations also
provided that are based on the improvement of research topic. Reflection was done by explaining
entire experience and recommendation also given for alternative research methodology which is
interview. Therefore aim and objectives of the research project are achieved successful manner.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction .....................................................................................................................................2
Literature review..............................................................................................................................4
Methodology and data collection ....................................................................................................6
Data analysis and interpretations.....................................................................................................8
Research outcomes.........................................................................................................................18
Covered in PPT ........................................................................................................................18
Conclusion and recommendations.................................................................................................18
Reflection and Recommendation of alternative research methodology .......................................20
REFERENCES .............................................................................................................................21
Appendix .......................................................................................................................................23
Questionnaire............................................................................................................................23
.......................................................................................................................................................24
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Introduction
Background of the study
Cultural diversity is the quality of different or diverse cultures, as opposed to the global
monoculture, homogenization of cultures etc. In the workplace, cultural diversity is the result of
traditions, values, practices, or beliefs of workers based on age, race, religion, gender, or
ethnicity (Wellin, 2016). For this research project, IKEA is a chosen multinational group of
Swedish origin. It was founded in 1943 by Ingvar Kamprad and headquartered in Delft,
Netherlands. Company specialise in selling of different products such as ready-to-assemble-
furniture, food products, homewear etc. IKEA faced some issues regarding the cultural diversity
at workplace. These issues are conflicts among team members, higher employee turnover etc.
These are major issues that negatively effects on organisational performance of IKEA.
Therefore, it is necessary for company to manage cultural diversity in the workplace. This will
helps them in attaining of competitive benefits and also in retaining of talented employees.
Research aim
“To identify the significance of managing cultural diversity in improving business
performance”. A study on IKEA.
Research objectives
 To identify the importance of cultural diversity in improving organisations performance
of IKEA.
 To explore ways that will be used by IKEA for promoting cultural diversity in the
workplace. To determine the challenges that may be face IKEA while implementing diverse
workforce.
Rationale for the research
Main reason behind doing this research project is to identify the significance of managing
cultural diversity in improving business performance. This is a main reason and helps researcher
at personal and also at professional level. Depending on personal level, this investigation assist
investigator by improving its research knowledge or skills, including literature review, data
collection, time management, data analysis and many others. At professional level, this study
assist by enhancing understanding regarding the significance of cultural diversity in enhancing of
organizational performance (Boer and et. al., 2017).
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Research Questions
 How cultural diversity helps in improvement of organisational performance?
 What are the effective ways that will be used by IKEA for managing cultural diversity in
the workplace?
 What are the major challenges that may be face IKEA while implementing diverse
workforce?
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