The IKEA Culture in Thailand, Research Paper Example

The IKEA concept is a task statement for franchise IKEA businesses owners to believe the ability to grow, survive, and be independent owner of the trademark IKEA Company. IKEA has a system called, “the Inter IKEA Systems B.V., that follows the IKEA franchise model based on a large-scale retail format include the marketing penetration elements: experience, local market knowledge and presence, corporate culture and values, and financial strength. In the country of Thailand, the IKEA culture and values are shaped by everything they put themselves into the tasks of investing their knowledge, abilities, ideas, and willpower into the IKEA franchise business. This is to say that the definition for cross cultural, multi-cultural, and to distinguish from intercultural situation are related to one another —- that is, a business must have a competitive intelligence to analyse the marketing resources that are available at its disposal. For example, the channels between the manufacturer and supplier and freight and shipping are the most expensive channels to establish the unity on the understanding of timing, cost, security, delivery, and satisfaction. The goal is saving the costs from over spending the expenses that may have imposed against the company. For instance, the supplier may and may not have backup transportation when one is stuck for whatever the reason may be the cause by unforeseen circumstances such as environmental disaster, mechanical malfunctioning, family matters, and or medical problems. IKEA wants trustworthysupplier who can deliver IKEA products to local markets on a timely manner in case of such catastrophic event. In fact, Thai economy has been interrupted by historic flooding in Bangkok, and nearly destroyed manufacturing sector, and five surrounding industrial providences in 2012. The government is investing 75 Billion dollars in infrastructure for the next several years.

Therefore, the cost may be at exact amount as expected, unless, IKEA may have to help the supplier to obtain a rental to transport the finished products to the local markets, if desired. Therefore, the cost may be exceeding the costs expected. This is the current situation that IKEA Thailand is striving for: tobuild a solid relationship with all channels ofoperations and to secure the security of its delivery and satisfaction with the IKEA products. At often times, suppliers would find something that could save their operation costs by using the outsourcing businesses that may give them the benefit of saving costs or even making illicit profitswhich in turn may affect IKEA’s reputation if exploited against IKEA. So, this is something that is not recognized by the international tariff laws or the local market business laws. It is about three crucial moral qualities of conducting business with suppliers: (1) Accountability- a structure to parse out the incentives among the known causes (2) Responsibility-a system to look up for organizational and technical solutions and (3) Sustainability-a substantial caveats to accustom environmental friendly products and materials.

To the extent, as accorded to the three different terms under business culture, the importance of perceiving the process of developing business relationships and the structure of conducting business operations are the core components of corporation and franchise cultures. To put in perspective, the relationship between manufacturer, supplier, freight, and shipping is of importance to live with and recognize the concern of eventful situation (e.g., disaster weather, medical problem, family matters, etc) that has occurred to others and to have the willingness to show the capability of justice and friendship in a various forms of social and business interaction. In addition, all channels should receive their understanding on simple operation that is necessary for the products to be delivered on a timely manner; again, because of the costs invested and spend on the materials that are available at its disposal. IKEA offers an incentive for employees to be innovate in creating business designs and to participate in training programmes to improve their knowledge bases on about IKEA business.