Business Project: Analyzing IKEA's Globalization Impact in China

Desklib provides past papers and solved assignments for students. This project analyzes IKEA's globalization impact in China.

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UNIT 6 MANAGING A SUCCESSFUL BUSINESS PROJECT

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Table of contents
Part A:........................................................................................................................................3
Lo 1 Establish project aims, objectives and timeframes based on the chosen theme................3
P1 Devise project aims and objectives for a chosen scenario..................................................3
P2 Produce a project management plan that covers aspects of cost, scope, time, quality,
communication, risk and resources............................................................................................3
P3 Produce a work breakdown structure and a Gantt Chart to provide timeframes and stages
for completion............................................................................................................................5
M1 Produce a comprehensive project management plan, milestone schedule and project
schedule for monitoring and completing the aims and objectives of the project.......................7
LO2 Conduct small-scale research, information gathering and data collection to generate
knowledge to support the project...............................................................................................8
P4. Carry out small-scale research by applying qualitative and quantitative research methods
appropriate for meeting project aims and objectives.................................................................8
M2 Evaluate the accuracy and reliability of different research methods applied....................12
LO3 Present the project and communicate appropriate recommendations based on meaningful
conclusions drawn from the evidence findings and/or analysis...............................................12
P5 Analyse research and data using appropriate tools and techniques....................................12
P6 Communicate appropriate recommendations as a result of research and data analysis to
draw valid and meaningful conclusions...................................................................................13
M3 Evaluate the selection of appropriate tools and techniques for accuracy and authenticity
to support and justify recommendations..................................................................................14
Part B........................................................................................................................................15
LO4 Reflect on the value gained from conducting the project and its usefulness to support
sustainable organisational performance...................................................................................15
P7 Reflect on the value of undertaking the research to meet stated objectives and own
learning and performance.........................................................................................................15
M4 Evaluate the value of the project management process and use of quality research to meet
stated objectives and support own learning and performance.................................................16
Reference list............................................................................................................................17

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Part A:
Lo 1 Establish project aims, objectives and timeframes based on the chosen theme
P1 Devise project aims and objectives for a chosen scenario.
Project aims and objectives:
Aims:
The contextual venture currently investigates the impact your host destination would have by
the chosen multinational company (IKEA).
Objectives:
 To ascertain effects of globalisation on connection to worldwide economic
happenings.
 To explore the way social, economic, as well as environmental aspects of host
countries are affected by multinational companies.
 To bring innovation within the organisation by analysing the driving forces that cause
barriers to innovation.
 To determine the benefits caused by globalisation that could turn to be challenging
forforthcoming periods.
P2 Produce a project management plan that covers aspects of cost, scope, time, quality,
communication, risk and resources
The contextual undertaken the board plan requires to assess degree, time, assets and quality
by the contextual organisation to achieve the associated endeavour among the host nation.
contextual organisation strategies to build up business globalization in China with proper
estimates considered. The environmental, social and financial aspects are overtaken with the
appearance of expanded impact and acknowledgement of globalization inside the
atmospheres of business range (Boströmet al. 2015). With the act of globalization, it is
essential that the business conducts are completed over an extended number of nations and
diverse districts of those host nations.
Time:
IKEA usually continues their interest in discoursing overseas cultures and nations by the hold
of globalisation. Moreover, as estimated with the increase in globalization IKEA might aim
to reach their host destination within a time span of 2 years (Burmanand Fernandes, 2017).

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Although it may take a minimum of 2 years for proper conducts of their business with the
host nation.
Scope:
Considering the extent of examination, their business tasks tried to be built up in the host
nation of China, thereby increasing courage for IKEA to extend their presence to the
developing nations as well. While developing nations make employees most of their abilities
and wages yet globalization traits will be cultivated (Fragouli, 2016). Although limitations in
business, in some cases, might be due to the unseen advantages through possibilities of
globalization which in turn results in the barriers for an effective business to be carried on.
Therefore the current research project tries to analyse all those impacts and effects that cause
hindrance or slows down the performance of the organization and its operations. The data
collected from various dependable sources might be difficult while carrying operations of this
project as an organisation is spread out in different nations. Many attributes although seem to
be useful for carrying business operations yet have risky consequences. Elaborated as
follows:
 Quality of Work:
To fulfil clients of the linked country in a proper way IKEA needs to understand the
skills, knowledge and attributes of the representatives and accordingly need it to arrange to
the Chinese quarters. As the mission is to achieve the host country of China by IKEA's
worldwide performance, specialised training is conducted for the employees. This is done
to satisfy the clients of the host nation in a proper way (Gillespie and Riddle, 2015). With the
advent of globalisation employees get a chance to grow their experiences by more exposure
and interaction. Thus, it is a great platform for developing their skills as they get the chance
to encounter more prominent experiences. But it turns out to be appalling similarly as the
employees appear to confront intense occasions when it comes to actually implement real
routine with regards to globalisation(Vahlne and Jonsson, 2017). While various developing
countries offer services, they encounter exploitation. In developed countries, they are often
seen with low wages or face eliminations for the job.
 Cost:
In order to make this arrangement get actualised actually, the fundamental step is to
analyse proper cost estimation.This is important because regarding costs and money related
effects, enormous separation is experienced during the time spent pay that is produced
for every one of the employees overseeing globalisation. IKEA needs to take a proportion of
their total compensation assets to spend during the time spent tending to the host nation

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(Hansenet al. 2016). In order to complete work on equivalent premise, the organisation that
has comprehensively working nearness are important to exchange representatives from one
nation to another. However, asfar as broadening salary dissimilarity between white collar and
blue collar, an extraordinary measure of a hindrance can be noted. It tends to be seen that
there are examples of wide normal livelihoods difference between the rich and poor
countries. Consequently, the organization which is working in differing nations need to
confront broadened salary go for their representatives to endure. The employee's salary is
found to be different even if the company or work is the same or even if labour is the same.
This is because of the locations of developed and developing countries.
 Risk and Resources:
When it comes to globalisation, a lot of risk factors get attached automatically to the concept.
IKEA, first of all, needs to consider the period of political uncertainty influencing thecountry.
China's asset accessibility must be examined to suitglobalization needsLarsson, A. and
(Schiehle, 2016). The likelihood availability of assets is important to be evaluated on
achieving the host nation. An adequate record of accessible assets must be taken to get the
job done their endeavour in the outside nation (Lasserre, 2017). Thus, in order to eliminate
the risk factors, the economic state has to be considered. Although by
outrageoushomogenisinginside their patterns, there are negative effects found to get
actualized through causing demolition towards the rich assorted variety.
P3 Produce a work breakdown structure and a Gantt Chart to provide timeframes and
stages for completion.
WBS for the current research project

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Classes 1 to 14 days 15 to 30 days 31 to 30 days 31 to 44 days 44 to 60
days
Framing the aims
as well as
objectives of the
contextual
business
assignment
Collecting data
regarding the
resources and
scopealong with
and
Reseacrh (impact of
blobalization)
Determination of
aim and objective of
the reseacrh
aim and objective
(Data collection
secondary and
primary data
Risk
analysis
Determination of
research approch
(positivisom
quantitative
research approch
(Data Analysis
deducing conclusion
and
recommandation
(Conclusion
(recommandation

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riskidentification
process
Choosing suitable
approaches to
carry out the
research project
Perform the
research analysis
utilising both
qualitative and
quantitative
research approach
Concluding
proper conclusion
as well as a
recommendation
from the
contextual
research project
Gantt chart: Timeframes and stages for completion
(Created by author)
M1 Produce a comprehensive project management plan, milestone schedule and project
schedule for monitoring and completing the aims and objectives of the project.
Scope management strategy
 Planning
 Designing of the research
 Research development
Communication plan
 Weekly report
 Weekly meeting
 Telecommunication
Milestone

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Milestone Start date End date
Research planning 15/04/2019 20/04/2019
Data collection 25/04/2019 30/04/2019
Data analysis 01/05/2019 05/05/2019
Cost management plan
Particular Cost
Research planning £100
Data collection £150
Appointing researcher £240
Purchasing research tool £170
Total 660
The current research of the projects focuses to analyse the effect of globalization implied
inside worldwide organizations and their ultimate impact on its social, financial and
ecological factors. With the course of worldwide organization approach, they are well on the
way to extend the contextual business among a changed wide range of regions within these
nations. The contemporary investigation venture focuses in building up far reaching
considerate regarding the positive as well as negative effects that natural, financial and social
attributes are making on the global organization taken for inquiry. Diverse stages are
incorporated the contextual examination procedure that are represented in the given Gantt
chart (Parboteeah and Cullen, 2017). An elaborative and complete comprehension as to the
globalized tasks carried on by IKEA should be recognized. Every effect that IKEA and their
business tasks or representatives face with impact on variety in every nation's business
surroundings will be considered. So, to create a powerful and suitable situation in regards to a
similar issue, the survey requires to be executed out to approve accurate information as well
as relevant data.

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LO2 Conduct small-scale research, information gathering and data collection to
generate knowledge to support the project
P4.Carry out small-scale research by applying qualitative and quantitative research
methods appropriate for meeting project aims and objectives.
Quantitative research analysis:
With a view to comprehend the effect of globalisation, a survey among employees of IKEA
has been carried out. Total number to 60 people is been approached for this survey; however,
only 49 has responded positively. The survey is conducted on the premises of the IKEA
headquarter. Three questions are asked to the respective respondent and their responses are
noted in the form of Likert Scale where the responses are divided into 5 degrees. In order to
understand the result more conveniently, the response percentage and other statistic tool are
used. In the following section, the results are attached in the form of a table as well as charts.
1. Globalisation acts like a positive factor that creates more job opportunity among the
freshers in the contextual market
Option Response
percentage Responses Total respondents
Strongly agree 51.02 25 49
Agree 20.41 10 49
Neutral 14.29 7 49
Disagree 6.12 3 49
Strongly disagree 8.16 4 49
Mean Median Mode SD
9.80 7.00 #N/A 8.93
Chart 1: Globalisation acts like a positive factor that creates more job opportunity among the
freshers in the contextual market
(Source: Created by author)
Strongly
agree
Agree Neutral Disagree Strongly
disagree
0.00
10.00
20.00
30.00
40.00
50.00
60.00
51.02
20.41 14.29
6.12 8.16

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Chart 1: Globalisation acts like a positive factor that creates more job opportunity among the
freshers in the contextual market
(Source: Created by author)
2. Wage discrimination in developing countries is caused by the exploitation of workers
takes place within the workplace
Option Response
percentage Responses Total respondents
Strongly agree 48.98 24 49
Agree 30.61 15 49
Neutral 6.12 3 49
Disagree 4.08 2 49
Strongly disagree 10.20 5 49
Mean Median Mode SD
9.80 5.00 #N/A 9.47
Table 2: Wage discrimination in developing countries is caused by the exploitation of
workers takes place within the workplace
(Source: Created by author)
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00
10.00
20.00
30.00
40.00
50.00
60.00
48.98
30.61
6.12 4.08 10.20
Chart 2: Wage discrimination in developing countries is caused by the exploitation of
workers takes place within the workplace
(Source: Created by author)
3. More employability opportunity created by globalisation is a future threat of high
competition
Option Response
percentage Responses Total respondents
Strongly agree 55.10 27 49

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Agree 20.41 10 49
Neutral 2.04 1 49
Disagree 12.24 6 49
Strongly disagree 10.20 5 49
Mean Median Mode SD
9.80 6.00 #N/A 10.13
Table 3: More employability opportunity created by globalisation is a future threat of high
competition
(Source: Created by author)
Strongly agree Agree Neutral Disagree Strongly
disagree
0.00
10.00
20.00
30.00
40.00
50.00
60.00
55.10
20.41
2.04
12.24 10.20
Table 3: More employability opportunity created by globalisation is a future threat of high
competition
(Source: Created by author)
Analysis:
After evaluating the entire result obtained from the conducted quantitative research the
effects of globalisation are comprehended. As stated earlier the globalisation has no doubt
affects the global job market by creating a new opportunity for freshers. It is also important to
be mentioned here, a multinational national company like IKEA has opened a new venture is
different counties which is effective in creating job opportunity for freshers. However, on
negative sides, it can be said that globalisation has caused exploitation of the workers of
developing countries by creating discrimination in wages. People of developing countries
offer way less wage than developed counties for the same work. This is agreed by most of the
employees who attend the survey. Finally, people agreed on the fact that though globalisation
is effective in creating more job opportunity in the current time period but in future, this
causes high rates of competition.

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Qualitative research based on interview upon managers of IKEA:
1. Does globalisation fetch positive responses as expected by most of the market leader?
The store and sales managers realise that the worldwide trading systems did not appear to be
a positive outcome although it had the motive of expanding quarters across the globe.Only
when the ideas are conveyed to rehearse one realises the adverse effect it has on business
operations. Moreover, there are other ecological, financial and social impacts that amaze the
positive effect of globalization.
2. Do you ponder IKEA is undergoingimpacts ofglobalisation as well asdisparities in
processes across the nations?
The sales and stores manager consistently concurred while offering an explanation to it. They
were of the view that assorted variety in pay scales had a strong impact on the employees and
lowered their morals. They consider it their obligation to maintain the working spirits tall. As
the contextual organisation is seen to be working in different nations these factors impose
discrimination that caused workers to feel exploited because they are getting paid on a
diverse scale even after a similar measure of work and endeavours.
M2 Evaluate the accuracy and reliability of different research methods applied.
Appropriate methods as well as a proper research structure are required when it comes to
both quantitative and qualitative approach. Research turns out to be effectively dependable
when they can show indistinguishable outcomes from that of present occasions when
retrieved after a specific time range.
At the point when the present research resorts to include deductive methodology, it is viewed
as generally appropriate (Potrafke, 2015).A top-down methodology will be viewed as most
strong to recover the desired result in the course of this examination venture.On picking
pragmatic research about theory a lot of equity has been built up as the present research
contemplate both subjective and quantitative research examination in a useful way. Every one
of the contextual research studies takes the current research to draw nearer to precision and
trusted quality dimensions.