Ikea in India: Applying Hofstede's Cultural Dimensions for Business

This report provides an analysis of Ikea's business operations within the Indian market, focusing on the application of Hofstede's cultural dimensions. The report begins with an introduction to Ikea and the significance of cultural dimensions in international business. It examines the framework of Hofstede's cultural dimensions, particularly focusing on how the company deals with cultural differences. The report then delves into the specific dimensions relevant to Ikea's operations in India, such as power distance and individualism, explaining how these dimensions impact the company's strategies. The conclusion summarizes the importance of understanding and adapting to cultural differences for successful business ventures. References to relevant academic sources are included to support the analysis.

Application of two of Hofstede`s cultural
dimension Business Case - Ikea in India

Contents
•INTRODUCTION
•Ikea in India
• Hofstede cultural dimension model
•Two cultural dimensions of Hofstede
•Difficulties in communication and culture
• CONCLUSION
•REFERENCES

INTRODUCTION
 Hofstede cultural dimension is defined as the framework that helps business to understand in
culture across different countries. Ikea is a Swedish multinational conglomerate organisation
that design as well as sell easy to assemble furniture products and various kitchen appliances
and attractive home accessories and occasionally it provides home services as well. The
respective organisation is founded in 28 July, 1943 by the Ingvar Kamprad.

Two cultural dimensions of
Hofstede
There are various dimensions included in Hofstede cultural dimension
model that help business that help Ikea distinguished all cultural
differences as well as extend their business in effective manner. The
respective organisation uses these cultural dimensions in order to
understand cultural factors to ensure smooth working and target potential
audiences. These dimensions are discussed below:

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There are two perspectives regarding the power distance index that are
described below:
If the power distance is high than it indicates that the culture of India
accepts inequality as well as power differences efficiently (Schorr, Voigt
and Rose, 2019). It encourages bureaucracy and reflects high level respect
for rank and authority.

CONCLUSION
 As per the above report, it can be concluded that Hofstede cultural dimension
model is the important tool that facilitates business entity to understand the
cultural differences and guide business to perform all organisation activities and
functions in efficient manner.

REFERENCES
Books and Journals
Binder, C. C., 2019. Redistribution and the individualism–collectivism dimension of culture. Social
Indicators Research. 142(3). pp.1175-1192.
Erthal, A. and Marques, L., 2018. National culture and organisational culture in lean
organisations: a systematic review. Production Planning & Control. 29(8). pp.668-687.
Novianti, K. R., 2018. Cultural dimension issues in Indonesia human resource management
practices: a structured literature review. MEC-J (Management and Economics Journal). 2(3). pp.245-256.

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