BM214 International Business Management Assignment
| Assessment Details and Submission Guidelines | |
| School | School of Business |
| Course Name | Bachelor of Business |
| Unit Code | BM214 |
| Unit Title | International Business Management |
| Trimester | T1 2023 |
| Assessment Author | Jasbir Kaur |
| Assessment Type | Individual |
| Assessment Title | Essay Individual |
| Unit Learning Outcomes Addressed: | Identify the implications of divergent international cultures for international business management and apply those principles to decision making. Review and evaluate political and economic risk associated with different international markets. Identify and evaluate alternative methods of market entry and international ventures. |
| Weighting | 10% |
| Total Marks | 20 |
| Word Limit | 1500 |
| Release Date | Week 3 |
| Due Date | Week 6 |
| Submission Guidelines | All work must be submitted on Moodle by the due date (as above) along with a completed Assignment Cover Page. BM214 International Business Management Assignment must be in MS Word format, 1.5 spacing, 11-pt Calibri (Body) font and 2 cm margins on all four sides of your page with appropriate section headings. Reference sources must be cited in the text of the Assessment Task and listed appropriately at the end in a Reference List using APA 6th edition for the School of Business. https://library.mit.edu.au/businessreferencing |
| Extension/ Special Consideration | If an extension of time to submit work is required, an Application for Special Consideration and supporting documentation must be submitted online via your Academic Management System (AMS) login: https://online.mit.edu.au/ams. The Application for Special consideration must be submitted no later than three (3) working days after the due date of the specific piece of assessment or the examination for which you are seeking Special Consideration. In the case of serious illness, loss or bereavement, hardship or trauma students may be granted special consideration. |
| Academic Misconduct | Academic Misconduct is a serious offence. Depending on the seriousness of the case, penalties can vary from a written warning or zero marks to exclusion from the course or rescinding the degree. Students should make themselves familiar with the full policy and procedure available at: https://www.mit.edu.au/about-mit/institute- publications/policies-procedures-and- guidelines/AcademicIntegrityPolicyAndProcedure. For further information, please refer to the Academic Integrity Section in your Unit Description. |
IKEA takes Swedish culture global
Source: Peng, M. & Meyer, K. (2023). International Business (4th ed). Cengage Learning EMEA.
The assemble-it-yourself furniture chain IKEA has developed its corporate culture from its Swedish roots, which not only shape the brand identity, but also stimulate designs – including the very idea of customers building the furniture themselves – and influence the way people treat each other in the organisation. IKEA’s corporate culture is grounded in Swedish values and shapes IKEA’s operation worldwide. In the words of IS country manager Lars Petersson, a Swedish expatriate, ‘We don’t make different considerations in different countries. It’s not that we aren’t appreciative and interested in local culture. We are very much. But there are some fundamental things that we are not negotiating.’
In-store employees are called ‘shopkeepers’ and few executives carry business cards. Pre-Covid-19, everyone sat side by side at no-frills IKEA desks in an open plan floor at the firm’s US head office. Employees in Miami were surprised when their country head, during a store visit, sat down with a shopkeeper to discuss how to most effectively move trash from the warehouse to the dumpster. IKEA also does not appreciate workaholics. In the words of an IKEA US head of HR, ‘If you can’t do your job in a reasonable amount of time, you’re doing something wrong.’ Few stick around after work hours, and everybody takes weekends off – except those on duty running the stores during weekends, of course.
Diversity and inclusion are also a core part of IKEA’s culture, including a high share of women not only in the workforce but also in leadership roles. Non-traditional identities are appreciated. For example, some IKEA commercials features gay couples. In the USA, IKEA has been offering domestic partner benefits since 1995 and covering gender reassignment surgery since 2016. Sometimes, its policies are viewed as ‘going too far’ in more conservative markets. For example, in Italy, a politician called for a boycott after IKEA organised an event in support of gay marriage. However, the long-term commitment to diversity and inclusion pays off: IKEA was recognised as one of the top-10 most diverse companies in Europe along the dimensions of gender, ethnicity, disability, LGBT+ and age by the Financial Times in 2021.
IKEA’s corporate culture is a clear differentiator in countries where retail workers are normally not well treated. For example, IKEA US offers generous wages and benefits compare with its rivals. Hourly employees receive an average of $15.45 an hour, and entry-level employees $11.87 an hour – 64% higher than the federal minimum wage of $7.25. In comparison, Walmart hourly employees receive an average of $13.38 an hour, and entry-level employees merely a dollar above the federal minimum wage. At IKEA, part- time employees enjoy health benefits for just 20 hours of work per week, while full-time employees annually receive 24 paid vacation days and five sick days and take a ‘European-style’ long vacation of several weeks. It may be normal in Sweden, but in the USA, it is essentially unheard of, according to Fortune magazine.
IKEA also transferred its Swedish-style human resource management practices to Japan and Korea when opening stores there. This was not easy because cultural distances were large. For example, workers looking for jobs tended to be focussed on salaries and not on welfare or workload issues. Also, giving part- time workers equal status and limiting promotion by seniority was not understood by many people in both Japan and Korea. Thus, IKEA’s local subsidiaries had to invest heavily in communicating why they did what they did to potential employees and to the public – they even had to appear in Korean parliament to explain the wage-setting policies. Eventually, however IKEA was recognised in both countries for the merit of some of their practices – notably the same pay and status for part-time workers. In Japan, their role model even influenced new legislation aimed at enhancing women’s workforce participation and professional opportunities.
Yet not all franchisees (local companies owing the shops) fully embraced the spirit of the Swedish culture guiding the IKEA brand. In France in 2021, a manager was convicted to a suspended prison sentence for illegally spying on employees and job applicants. According to court documents, IKEA hired a private security firm to illegally collect personal data and even obtain police records. Even with the best intentions, creating a consistent global corporate culture can be quite challenging, especially at time of rapid growth.
Questions for Discussion
1. Examine the culture of Sweden using either the Hofstede or the Globe cultural model. How do IKEA’s HR practices discussed in the case reflect Swedish culture?
2. IKEA is currently not operating in Brazil. Examine the culture (using either Hofstede or the Globe cultural model) and the political and economic environment of Brazil. Based on your analysis of Brazil and understanding of Sweden, should IKEA set-up operations in Brazil?
Essay Structure
Cover Page
Table of Contents Introduction Body
Conclusion
List of Reference
Marking criteria:
Assessment criteria are shown in the following table. Marks are allocated as follows:
| Assessment criteria to be met and assessed | Detailed Description of the Assessment Criteria | Breakdown of Marks |
| Criteria 1 | Response to the question demonstrates ability to scan and examine cultural dimensions of a nation and its influence on management decisions. | 6 |
| Criteria 2 | Response to the question demonstrates ability to scan and examine the cultural, political, and economic environment of a nation. Ability to recommend management strategy based on findings. | 10 |
| Criteria 3 | Supports research with both in-text and list of reference. | 3 |
| Criteria 4 | Writing style; paraphrasing; spelling/grammar; formatting. | 1 |
| Total | 20 |
Using Technology for Assessment
| Rationale | Activities | Technological tools selected |
| reflection on learning feedback on performance practice of critical thinking Innovation and entrepreneurship skills | check for plagiarism problem-based learning innovation and creativity tasks creative and practical solutions | Moodle Turnitin MS Word |
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BM214 Essay Individual (10%) – Marking Rubric
| Fail 0% | Fail 1-49% | Pass 50-59% | Credit 60-69% | Distinction 70-79% | High Distinction 80-100% | |
| Scanning and analysis 6% Scanning of cultural dimension and analysis of management decision | Not provided | Response demonstrates a lack of understanding, minimal or inadequate comprehension of cultural models and case. | Basic, very general response that attempts to provide evidence of having scanned the cultural dimensions of the stated nation. Applied analysis to case is lacking. | Strong response that demonstrates an attempt to investigate the cultural dimensions of the stated nation. Attempts to make connections with the why in the case but the explanation is not well integrated. | Very strong response that demonstrates detailed scanning of the cultural dimensions of the stated nation. Comprehensive explanations that contextualise management decisions based on the case. | Exceptionally thorough response that demonstrates detailed investigation of the cultural dimensions of the stated nation. Exceptional explanations that contextualise management decision based on the case. |
| Scanning. analysis and recommendation 10% Scanning of cultural, political, and economic environment and recommendation based on findings. | Not provided | Response demonstrates a lack of understanding, minimal or inadequate comprehension of cultural models, environment forces and case. | Basic, very general response that attempts to provide evidence of having scanned the cultural, political, and economic environment of the stated nation. Basic recommendation with some reference to evidence identified to justify. | Strong response that demonstrates an attempt to scanning the cultural, political, and economic environment of the stated nation. Good, well- thought recommendation and justification for management. | Very strong response that demonstrates scanning of the cultural, political, and economic environment of the stated nation. Excellent, well-reasoned, recommendation for management. | Exceptionally thorough response that demonstrates detailed scanning of the cultural political and economic environment of the stated nation. Exceptionally clear recommendation and justification for management. |
| Referencing 3% The report in proper APA format In-text citation and reference list being used purposefully. Relevant and appropriate quantity of peer reviewed journals. | Not provided | High level of content not referenced correctly or not using APA format. No way to check the validity of the information gathered. | Basic attempt at referencing or not referencing using the APA format. Only includes either the in-text citations or the reference list. | Good adherence to proper formatting. Moderate attempt at referencing in the APA format. Includes both the in- text citations and the reference list. Minimum 4 academic sources have been used. | Excellent adherence to proper formatting. Most references correctly acknowledged using the APA format. Includes both the in-text citations and the reference list. Minimum 6 academic sources have been used. | Exceptional adherence to proper formatting. All references acknowledged in correct APA format. Includes both the in-text citations and the reference list. Minimum 8 academic sources have been used. |
| Academic Report Requirements 1% Includes overall composition, structure, grammar, spelling, and punctuation. | Not provided | Report does not include the majority of the report requirements set out by this rubric. Many elements are missing from the report. Table of contentsCorrect headings usedCorrect use of grammar and spelling.Page numbers suppliedTimes New Roman Pt 11 or 121.5 line spacingAppendices if required | Report includes some of the report requirements. Some elements are missing. Table of contentsCorrect headings usedCorrect use of grammar and spelling.Page numbers suppliedTimes New Roman Pt 11 or 121.5 line spacingAppendices if required | Report fulfills most of report requirements. Table of contentsCorrect headings usedCorrect use of grammar and spelling.Page numbers suppliedTimes New Roman Pt 11 or 121.5 line spacingAppendices if required | Report fulfills majority of report requirements. Table of contentsCorrect headings usedCorrect use of grammar and spelling.Page numbers suppliedTimes New Roman Pt 11 or 121.5 line spacingAppendices if required | Report fulfills all requirements. Table of contentsCorrect headings usedCorrect use of grammar and spelling.Page numbers suppliedTimes New Roman Pt 11 or 121.5 line spacingAppendices if required |