International Human Resource Management Report: Ikea Case Study

This report provides an analysis of Ikea's international human resource management practices, focusing on its operations in Australia and China. The report examines Ikea's corporate strategies and workforce-related practices in these two countries, considering factors such as the external and internal operating environment. It identifies challenges related to expatriation and workforce management, and analyzes the influence of these challenges on Ikea's overall culture. The report also explores the company's vision, mission, and sustainable strategy, emphasizing its commitment to providing value to customers. The discussion covers findings, conclusions, and recommendations for improving Ikea's performance in these international locations. The report highlights the importance of adapting to local environments and managing employees effectively to maintain a competitive advantage. The analysis includes how Ikea deals with challenges related to the dissemination of knowledge and deployment of personnel in different regions. The report provides insights into Ikea's approach to employee development, decentralized management, and its treatment of employees as co-workers. The report concludes by emphasizing the influence of political and economic factors on Ikea's profitability and competitive advantage in the furniture industry.

Running head: INTERNATIONAL HUMAN RESOURCE MANAGEMENT
INTERNATIONAL HUMAN RESOURCE MANAGEMENT
Name of the Student
Name of the University
Author Note

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Introduction
The workplace relationships are mainly related to the various interpersonal
relationships which have important implications for individuals who are a part of the
relationships. The relationships between the employees in the workplace affect the operations
of the various organizations in which these exist. The ability of the employees in the
organization is also affected by the relationships that are formed in the workplace among
themselves and the superiors. The connections that are established by workplace relationships
are multifaceted in nature and exist within the organizations and outside as well.
The report will analyse the organization named Ikea and the key factors that are
related to the improvement its performance in two international locations namely Australia
and China. The various aspects of the organization that will be taken into consideration for
the analysis of the operations of Ikea in the two countries are, corporate strategies of the firm
and the different workforce related practices that are followed in the company. The report
will help in the identification of the expatriation related practices that need to be improved so
that Ikea is able to continue its operations in a sustainable manner in Australia, China. The
management of workforce will also be analysed in the discussion. The report will be mainly
based on the analysis of the methods that are implemented by various organizations for the
purpose of operating in a successful manner in the changing cultural environment in different
regions or countries. The recommendations related to the potential changes that can be made
in the systems will also be provided in the report.
Background
Ikea is a global retailer of office and home based furniture products which are offered
to the customers in all the international operations of the organization. The corporate
headquarters of the company is located in Sweden and the management has been investing a

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huge amount in the various international expansion related plans of the company. The
position that has been obtained by Ikea in the industry is based on the different. The
organization has its international operations China and Australia. The operations and
profitability of Ikea in these countries is the main focus of this report. The internal and the
external operating environment of Ikea has affected the ways by which the organization has
been planning the operations. The products that are offered by Ikea in the different areas of
its global operations are different from each other. The local environment of the area is
always taken in to consideration by Ikea before they start the operations. The ways by which
the employees and the expatriates are managed by the organization is analysed with the
special focus placed on China and Australia. The challenges that are thereby faced by the
company based on the successful management of the employees has been analysed and
discussed in the previous part of the report. The influence of these challenges on the overall
culture of the company is analysed in the project report that has been prepared for Ikea. The
organization has been able to show huge amounts of growth in the several years of its
operations. The customer base of Ikea has been built in various parts of the world in an
effective manner. This has further increased the profitability and revenues of the company.
The organization has extended its operations in more than 28 countries with 340 stores. The
stores of Ikea in China are wholly-owned subsidiaries. The products of Ikea are uniquely
created within the premises of the stores itself. Ikea has been able to maintain its position in
the industry in a successful manner in spite of the entry of various other major furniture retail
organizations. The Chinese and Australian market of Ikea has diversified in a huge manner
along with the increase of the market share of the organization in the entire world. The stores
of the organization in China are considered to be wholly-owned subsidiaries and this has been
the major reason that the company is held accountable to maintain its position in the market
in an effective manner. The organization has always tried to provide the highest value to its

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stakeholders with the help of its low prices and high quality products. The vision and mission
of the organization has been based on providing the value to the lives of their customers by
creating a better everyday life for them. The strategy of Ikea is also sustainable in nature
which has been based on providing the customers with affordable products. The globalization
of workplace has led to the multinational organizations to deal with various different
challenges that are related to the dissemination of knowledge and the deployment of the
personnel in the areas where they are required. The organization is thereby known in the
industry to develop the local talents in the areas where they have the operations. This has
helped the company in creating a different position in the industry by developing the areas
where it operates. The employees are provided with personal career plans which help them in
excelling in the future. The decentralized management process is used by Ikea to provide
optimum levels of training to the employees with the help of decentralized management
process. The organization refers of the employees as the co-workers who treated as a major
part of its success in the market. The external environment of Ikea has influenced the
operations of Ikea to a great extent. The organization has been aware of the changes that take
place in the external environment and has changed its policies accordingly. The political
environment of Australia and China has influenced the competitive advantage of Ikea in the
furniture industry of the countries. The changes in the political environment have thereby
influenced the policies and the revenues of the organization. The economic conditions and
shifts in the diversity has also been a major factor that has influenced the profitability of Ikea
in the various countries of its operations.

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Discussion
Findings and the conclusions
Recommendations
Attachments
References