Impacts of Cultural Differences Free Essays

string(64) to go on an exchange, hence find out about the rival . Hunan Information Science Vocational College Graduation Thesis Subject: Impacts of Cultural Differences on International Business Negotiation Name: Chen Xiujuan Student No. : 0 8 5 1 0 3 4 0 Specialty and Class: Business English, Class 3 Department: Department of Humanities and Arts Supervisor: Liu Mifan Date: 2011-3-02 Contents Introduction1 1. Kinds of Cultural Differences2 1. We will compose a custom exposition test on Effects of Cultural Differences or then again any comparative point just for you Request Now 1Value View2 1. 2. Arranging Style2 1. 3. Thinking Model2 2. Effect Of Cultural Differences on International Business Negotiations4 . 1Impact of Value Views Differences on International Business Negotiations4 2. 1. 1Impact of Time View Difference on Negotiation. 4 2. 1. 2Impact of Equality View Difference on Negotiation. 5 2. 1. 3 Impact of Objectivity Difference on Negotiation. 6 2. 2 Impact of Negotiating Style Differences on International Business Negotiations. 7 2. 3 Impact of Thinking Model Differences on International Business Negotiation. 8 3. Adapting Strategy Of Negotiating Across Cultures. 9 3. 1 Making Preparations before Negotiation. 9 3. 2 Overcoming Cultural Prejudice. 10 3. Overcoming Communication Barriers. 10 Conclusion11 Bibliography12 Acknowledgements13 Abstract The business arrangements under various social conditions come to diverse dealings. With the monetary globalization and the continuous business contacts, social contrasts appear to be significant; else they could cause pointless misconception, even influence the consequence of the business arrangements. This implies it is critical to know the distinctive culture in various nations and the approaches to stay away from the way of life clashes in the universal business arrangements. The article starts from the kinds of culture contrasts, at that point it clarifies the effects of these culture contrasts on global business exchange lastly it breaks down how to manage the issue of the social contrasts effectively in arrangement process. Such an outlook is underscored: In the business dealings between various nations, moderators ought to acknowledge the different party’s culture, and attempt to cause him to be acknowledged; at that point make a right assessment with the assistance of legitimate correspondence and find their genuine advantages between them. Moreover, we should know plainly and attempt to acknowledge the way of life contrasts as conceivable as possible. It is significant for the accomplishment of culture exchanges. Catchphrases: Culture; Cultural contrasts; Business exchange; Impact Introduction Along with the progression globalization and China’s WTO passage, business ventures in China need to confront increasingly more business dealings with outside endeavors, particularly with American undertakings. In these dealings, Chinese moderators now and then feel awkward, astounded, lost, disturbed and the same, on account of new custom and practices exhibited by American mediators. In the mean time, American moderators stand up to a similar circumstance. Faction country contrasts among China and west nations could cause numerous issues. In this way, understanding social contrasts and beating them is essential in worldwide business arrangements. In spite of the fact that the meaning of culture is various and ambiguous, it is regularly Recognized that culture is a mutual arrangement of images, convictions, qualities, mentalities and desires. Culture is a significant determinant in business arrangement. So have an away from of culture contrasts if of extraordinary criticalness. . Kinds of Culture Differences The east nations and west nations have created various societies on the various landmasses. Among the various societies, esteem sees, arranging style and thinking model show up increasingly self-evident. 1. 1Value View Value see is the standard that individuals use to asses target things. It incorporates time see, correspondence view and objectivity. Individua ls may draw an alternate or even conflicting decision about something very similar. Worth view is one of the most significant contrasts among the numerous elements. It can impact the disposition, needs and conduct of individuals. The worth view fluctuates from country to country, individuals realize that the eastern individual spotlight on community, while the western individuals give more consideration to independence. 1. 2. Arranging Style Negotiating style alludes to the resilience and graces which the mediator appears in the arrangement. The arbitrators show their arranging style through conduct, habits and the strategy for controlling exchange process during the arrangement. The negotiator’s arranging style has a heading on their way of life foundation. As indicated by the way of life contrasts, arranging style falls into two sorts: the east arranging style design and the west arranging style design. 1. 3. Thinking Model Thinking model mirrors the way of life. In view of the impacts of history foundation, landmasses, words and living technique, various countries produce distinctive reasoning models. Unquestionably, there is more than one thinking model about a country, however one is progressively clear contrasted and others. All in all, east individuals, particularly Chinese have solid exhaustive reasoning, picture thinking and bended reasoning, while logical reasoning, unique reasoning and direct reasoning are controlled by the west individuals. 2. Effect of Cultural Differences on International Business Negotiations With the quick improvement of economy, we have to work with representatives under various culture foundation, so as to agree, it is essential for us to consider the effect of culture contrasts on universal arrangement in worldwide business exercises. The effect of culture contrasts on worldwide arrangement is broad and profoundly. Various societies partition the individuals into various gathering and they are additionally the deterrents of people’s correspondence. Likewise, it is necessitated that the mediator ought to acknowledge the way of life of one another. Besides, through culture contrasts, it is significant that the arbitrator uncover and comprehend the different party’s objective and conduct and cause oneself to be acknowledged by the adversary to arrive at understanding at long last 2. 1Impact of Value Views Differences on International Business Negotiations Worth Views Differences on International Business Negotiations fall into three sorts: time see, exchange style, thinking model. Each has large impacts on business exchange 2. 1. 1 Impact of Time View Difference on Negotiation. The time see which influences the negotiator’s conduct fluctuates from east nations to west nations. The oriental or the Chinese arbitrators are normally mindful and tolerant. They have to experience the expressions of concocting proposes, raising complaints and closure the exchange which takes a more drawn out time. What's more, they would like to mastermind rich chance to go on an arrangement, therefore find out about the adversary . You read Effects of Cultural Differences in classification Papers They are acceptable at long and nonstop fight. While west individuals or we could state American individuals, consider time is valuable. They will in general determination issues quickly. In this way, in business arrangement, American businesspeople frequently gripe about the deferral and the absence of productivity of arbitrators from different nations, while these nations additionally submit a question that the Americans need persistence. There is a well known saying among American moderators and specialists: It is denied to take time. That shows the time perspective on Americans. To them, time implies cash. The time perspective on Chinese is cyclic. They utilize long haul and methodical perspectives to esteem the significance of the theme. A celebrated people characterize the time see into two sorts: straight-line time viewand cyclic time see. The previous give more consideration to fixation and speed, and the later pressure doing numerous things one after another. That they demand diverse time see prompts distinctive arranging style and technique. The American individuals speak to the straight-line time view and they have a solid attention to present day rivalry. They search for speed and proficiency. So they esteem time gravely and consider time as an extraordinary product whose worth could be evaluated. They regularly utilize moment to compute time . They plan to decrease arrangement time at each expression and need to finish the exchange rapidly. Be that as it may, the Chinese time see is cyclic and they place accentuation on solidarity. Also, it is important to be reliable at exchanges. West individuals make some solid memories see, on the off chance that you don’t consent to the arrangement time, they may give you a discipline and they will view you as untrustworthy and flighty individual. Being late for exchange will give the west businesspeople chances to apply pressure onyou, and afterward you will lose the status of being activity. 2. 1. 2 Impact of Equality View Difference on Negotiation America experienced the bourgeoisie upset of taking a stab at the balance and opportunity, so they bring correspondence into their heart. Americans stick to correspondence and reasonableness in business, and expectation that both could pick up advantage. While presenting the theme or circumstance, the west individuals might want to utilize solid technique, especially information. Their arranging technique is that they will portray their perspective and propose toward the start so as to get activity. Under this rule, they would concoct a sensible goals which they believe is extremely reasonable. In business relationship, the merchants from America see the purchaser as a partner. Americans are more attractive than Japanese is sharing advantages. A ton of American directors think reasonable division of benefits is a higher priority than the amount they could get. Now, the east individuals are unique. As a result of the profoundly impact of class see, they don’t give a lot of consideration to correspondence. They generally receive single-win procedure

Short writing assignments Essay Example | Topics and Well Written Essays - 500 words

Short composing assignments - Essay Example This new innovation will offer an answer for the test most webcam clients face because of the inconceivability of having an eye to eye connection with the individual one is visiting with. What's more, clients won't have to confront the camera. This straightforward film uses a modest quantity of the light going through it, and centers it to the parts of the bargains. This has various sensors, whose job will be to frame the picture, which hits the sheet. Notwithstanding, this picture sensor, as different cameras today despite everything needs centering. By and by, the goals of this picture sensor is as yet being taken a shot at. Up until now, it is restricted, and just delivers pictures that are not up to norm. This is notwithstanding much commotion that it delivers all the while. In any case, as the researchers keep taking a shot at this, every one of these issues will be made plans to create a progressively dependable picture sensor, which is required to be embraced by more individuals, since it is another innovation. The logical procedure encompassing this new innovation is very entangled, as clarified in the article. Be that as it may, I locate this entire thought splendid and interesting. I love photographs and along these lines, I accept this new innovation will be greatly grasped by individuals, who likewise like photographs. Regardless, the advantages this innovation conveys will make much more individuals to like photographs, since this will be anything but difficult to utilize, and will create greater quality

TOEFL Essay Samples

TOEFL Essay SamplesDid you know that there are Toefl essay samples out there? Actually, I do. They are offered by the University of Michigan and other educational institutions all over the United States.If you want to score high on the TOEFL exam, you should take advantage of these samples. They offer a step-by-step guide that will show you how to prepare for your test. They have four sample essays for you to practice on. Each essay will give you suggestions on how to handle the material so that you will come out of the test with a good score.The TOEFL essay samples were created by a large group of students from various educational institutions in the United States. They had many different ideas about how they wanted the essays to be presented. They asked the students to come up with their own ways of presenting the topics. This is why the sample essays included so many different essays that you can choose from.The TOEFL essay samples were designed so that no matter where you are in the world, you can easily use them. Most of them also have sample tests that you can take. These test have been created by the TOEFL organization and are very comprehensive.The sample essays that were provided were designed by professional writers who work with the TOEFL organization. You can check the website of the TOEFL organization for more sample essays.In order to improve your TOEFL score, you will need to spend at least one or two hours a day taking practice tests. It does not matter if you cannot afford to take a full test because the TOEFL is an exam that will only test certain sections of your vocabulary. You will have no trouble passing the full test since it only test a few areas of your vocabulary.By doing this, you will be able to study for a full test more efficiently. Before the essay samples were available, it was quite difficult to write a TOEFL essay. You had to fill out a questionnaire for the essay that would then have to be analyzed by a professional. This took a lot of time and money out of your pockets.The TOEFL essay samples were created in order to make it easier for people to score higher on the TOEFL exam. You can also take advantage of them. They are available for free online. These essay samples will help you greatly when it comes to preparing for the TOEFL.

An Assignment on a Marketing Research Proposal - Free Essay Example

Sample details Pages: 4 Words: 1165 Downloads: 8 Date added: 2017/06/26 Category Marketing Essay Type Case study Did you like this example? ASSIGNMENT ON MARKETING RESEARCH PROPOSAL Table of Content CONTENT Pg No. Executive Summary 3 Background 3 Problem Definition 3 Approach to the Problem 4 Research Design 4 Field/Data Collection 5 Data Analysis 5 Cost and Time 5 Validity and Reliability of Market Research 6 Appendix 7 Reference 8 Executive Summary I have prepared this report proposal on an airline company called Oman Air. In this report you will find a compact profile on Oman Air. In this report I am considered as the market researcher of Sirius Marketing and Social Research Ltd. Here Oman Air has assigned me as their market researcher to find a solution of their problem which is nowadays the airline company is not getting that much response in their issuing of tickets. In this report you will find the data collection methods, broad components of my research problem, data analysis and the full planning of my research methods. Sirius Marketing and Social Research Ltd. is taking Tk 200,000 for doing this research from Oman Air and the company is willing to pay the money to the research company on the basis of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s goodwill. Background Oman Air can trace its root back to 1970, when Oman International Services (OIS) was established. The company became a civil aircraft ground h andling provider atBeit Al Falaj Airport.In 1972, OIS moved its operations to the new terminal atSeeb International Airport. The company took overGulf Airà ¢Ã¢â€š ¬Ã¢â€ž ¢s Light Aircraft Division in 1977, before establishingAircraft Engineering Divisionin the same year. Swiftly expanding civil aviation industry of Oman led OIS to the building of several facilities à ¢Ã¢â€š ¬Ã¢â‚¬Å" including workshops, hangers and in-flight catering à ¢Ã¢â€š ¬Ã¢â‚¬Å" to provide for the increase in their activity. Oman Air was completely established in 1981. But nowadays the airline company is not getting that much response in their issuing of tickets. For example, even in the last year 2013 they had 70 lakh tickets booked but in this year of 2014 till now they have got only 20 lakh tickets booked. Problem Definition Till now Oman Air has a good reputation but gradually losing their customers is not normal for the company. The possible reasons for losing their customers may be their air hostessà ¢Ã¢â€š ¬Ã¢â€ž ¢s behaviour towards the customers in the flight became bad or is not good as before and the airline company is using old aircrafts which was arising technical issues. Approach to the Problem Nowadays as the company Oman Air is losing customers and having a loss in their company they wanted Sirius Marketing and Social Research Ltd. to find a solution for it. The possible solutions to the problem can be they can re-train the air hostesses to make their behaviour good with the customers. They can use the stored money which Oman Air has for future use and buy new aircrafts or repair the technical problems. Research problems Questions: Don’t waste time! Our writers will create an original "An Assignment on a Marketing Research Proposal" essay for you Create order Is Oman Air using old aircrafts which is unsafe for the customers? H1: Yes they are using old aircrafts which is very unsafe for the customers. H2:No they are not using any old aircrafts which is unsafe for the customers. Are the air hostesses of Oman Air misbehaving with their customers? H1: Yes the air hostesses are misbehaving with the customers H2: No the air hostesses are not misbehaving with the customers. Research Design I am considered as the market researcher of Sirius Marketing and Social Research Ltd. Here Oman Air has assigned me as their market researcher to find a solution of their problem which is nowadays the airline company is not getting that much response in their issuing of tickets. In this report you will find that descriptive research is done to solve this problem. To solve this problem I did a questionnaire survey on the customers of Oman Air. The questionnaire survey was completely based on random sampling. The questionnaire is attached in the appendix. Basically the research is done to make an improvement in Oman Air so that their level of customers will reach to the previous level. Field/Data Collection I am considered as the market researcher of Sirius Marketing and Social Research Ltd. Here Oman Air has assigned me as their market researcher to find a solution of their problem which is nowadays the airline company is not getting that much response in their issuing of tickets. Sirius Marketing and Social Research Ltd. is taking Tk 200,000 for doing this research from Oman Air and the company is willing to pay the money to the research company on the basis of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s goodwill. To do the research I am using primary research method and doing qualitative questionnaire survey using random sampling. I am also using secondary information to study about the company. Data Analysis To bring a solution to Oman Airà ¢Ã¢â€š ¬Ã¢â€ž ¢s problem after gathering the information or data I used analysis methods like hypothesis, multivariate analysis and etc. After doing the analysis the research will be completed and will be able to present a solution to the company. Cost and Time When talking about cost Sirius Marketing and Social Research Ltd. is taking Tk 200,000 for doing this resea rch from Oman Air and the company is willing to pay the money to the research company on the basis of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s goodwill and another reason for which the company agreed to pay this amount is that it rather than other companies Sirius Marketing and Social Research Ltd. is wanting less money. The research company will do this research within 2 months and this is very convenient for Oman Air. The research company will keep Tk 120,0000 for their company and will use Tk 80,000 for the research. Validity and Reliability of Market Research Validity and Reliability is very important to maintain for research firms. Here I can show validity and reliability of the primary data which is the questionnaire survey for which I gathered photographs of the interviewer and the customers during the questionnaire and secondary source by showing them from where I collected the data. I chose to collect both primary and secondary data cause primary data is most of the time authen tic as it is always collected for known purpose and secondary data are always easy to collect as they are already collected before. Appendix QUESTIONNAIRE SURVEY FOR OMAN AIR TO THE CUSTOMERS Please give a tick mark on the blank space. Are you happy about Oman Airà ¢Ã¢â€š ¬Ã¢â€ž ¢s service? Yes_ No_ Are the airline giving you enough satisfaction while travelling? Yes_ No_ Is Oman Airà ¢Ã¢â€š ¬Ã¢â€ž ¢s staff behaving welcomingly with you? Yes_ No_ Do you find the price of the flightà ¢Ã¢â€š ¬Ã¢â€ž ¢s ticket efficient? Yes_ No_ While travelling do you find the flightà ¢Ã¢â€š ¬Ã¢â€ž ¢s environment comfortable? Yes_ No_ Do the cruises working in the plane fulfil your necessities while travelling? Yes_ No_ Reference oman air. 1981.oman air. [ONLINE] Available at:https://www.omanair.com/en/. [Accessed 15 May 2014]. oman air. 1981.oman air. [ONLINE] Available at:https://en.wikipedia.org/wiki/Oman_Air. [Accessed 15 May 2014] oman air. 1981.oman air. [ONLINE] Available at:https://en.wikipedia.org/wiki/Reed_Business_Information. [Accessed 15 May 2014]. Malhotra, Naresh K., 2011.Marketing Research. 6 th ed. India: Pearson. 1

Self Esteem Essay - 702 Words

Is too much Self-Esteem bad? Self-Esteem has existed since forever, however, over the years people have seen some inappropriate behaviors on adults than come since their childhood. In the article â€Å"Teaching kids Self-Esteem† by Love Our Children USA, they write â€Å"Good self-esteem is essential to a childs development. It’s the foundation of everything they do, everything they are--it’s the foundation of their future!† Of course helping children build their Self-Esteem is a great push for them to be confident in their acts. In my opinion confidence begins at home and over the years, hopefully, leads you to success. In the article â€Å"Teaching kids Self-Esteem† also shares â€Å"Who they are is a mirror of you!† As if it was telling parents that†¦show more content†¦It is so important to teach our kids that every person has the same value in this world. The author also says â€Å"In The Narcissism Epidemic, co-written with Keith Campbell, Twenge blames the growth of narcissistic attitudes on a range of trends - including parenting styles, celebrity culture, social media and access to easy credit, which allows people to appear more successful than they are.† This all resumes with what we started if we do not build our children self-esteem the correct way this with the years can become a problem, then he/her would suffer from other people not wanting to hang out with them. In the article â€Å"Does confidence really breed to success† the author claims â€Å"Whats really become prevalent over the last two decades is the idea that being highly self-confident - loving yourself, believing in yourself - is the key to success. Now the interesting thing about that belief is its widely held, its very deeply held, and its also untrue. It is important not to confuse high self-esteem and narcissistic comportation. In paragraph 18 of the article â€Å"Does confidence really breed to success† the author writes â€Å"You need to believe that you can go out and do something but thats not the same as thinking that youre great, says Twenge. She gives the example of a swimmer attempting to learn a turn - this person needs to believe that they canShow MoreRelated Self-Esteem Essay1122 Words   |  5 Pagesknown as: self-presentation. A great deal of human behaviour is, in part, determined or constrained by people’s concerns with others’ impressions and evaluations of them. Because all human beings are different from one another, the thought process used which results in the self-presentation of a person will also differ from person to person. In this case the potential factor effecting the self-presentation of an individual is that of the self-esteem of the individual. 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There is high self esteem which is when you feel good about yourself, and then there is low self esteem which is when you feel bad about yourself. Being constantly criticized by family, friends, and society tends to slowly strip us of our feelings of self worth. Our low self esteem strips us of our self confidenceRead MoreSelf Esteem Essay748 Words   |  3 Pages Low Self Esteem is a very typical thing nowadays with people criticizing each other due to social media. Self-esteem is an important and valuable building block in having a prosperous life. Having low self-esteem can lead up to depression and to not wanting to do anything, you want to give up on life. Putting other people down will hurt their feelings which in then will make them start to think that they are not valuable enough. 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Self-esteem has captivated the interest of psychological researchers and the whole of society. â€Å"This academic preoccupation is substantially matched by interest among the public at large, and not just among those people, doctors, teachers and social workers who might be expected to show a professional interest in the human psyche. In their everyday lives people routinely treat the notion of self-esteem

Essay on Behaviorism Modern Applications - 1240 Words

Behaviorism is the study of human behavior and is based on the belief that all human behavior is learned. Behaviorism evolved during the 19th century and took hold in the early years of the 20th century. Notable behaviorists include Albert Bandura, Ivan Pavlov, B.F. Skinner, Edward Lee Thorndike, Edward C. Tolman, and John B. Watson. These men opposed the study of consciousness believing that psychology should instead focus on only what could be seen, heard, or touched. The result was a science of behavior that viewed human beings as machines (Schultz Schultz, 2008). This paper offers a discussion of the evolution of behaviorism, the contributions of Albert Bandura, and the impact of behaviorism on modern psychology and life in the 21st†¦show more content†¦He received his bachelor’s degree in Psychology from the University of British Columbia in 1949. He then continued on to the University of Iowa, where he received his Ph. D. in 1952. In 1953 he accepted a teaching position at Stanford and continues on there still today. The concepts brought forth by Bandura that will be addressed are observational learning and self-efficacy, Observational Learning: A condition in which learning takes place by watching the actions of others (Schacter, Gilbert, Wegner, 2009). In this process, learning occurs when individuals observe and imitate others’ behavior. In 1961 Bandura joined up with Dorrie and Sheila Ross with their now famous experiment with the Bobo doll to see how learning was related to aggression. At the time, thoughts of aggression in children were subject by â€Å"the Freudian view that such behavior was the product of intrapsychic forces operating largely unconsciously. Students’ aggression on the playground or in school was seen as a recurring expression of underlying impulses requiring release in minimally detrimental ways† (Zimmerman Schunk, 2003, p. 440 as cited in Artino, A. r., 2007). Bandura’s findings sug gested that â€Å"observation of cues produced by the behavior of others is one effective means of eliciting certain forms of responses for which the original probability is very low or zero† (Bandura et al., 1961, p.580 as cited in Artino, A. r., 2007). In others words,Show MoreRelatedBehaviorism Was A Slow Revolution1604 Words   |  7 PagesBehaviorism was a slow revolution that proved to become a popular study within psychology that lasted through the second decade of the twentieth century and through the beginning of the cognitive science revolution (Behjamin, 2014). During this time, there had been a vast amount of academic individuals that contributed to the multifaceted studies within the context of behaviorism. 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Dualism, is possibly the oldest and the most intuitive of the philosophies of mind, however within the modern psychology, this philosophy is a minority view among psychologists. This theory states that the mental cannot exist outside of the body, and the body is unable to think. It refers to reality as two distinct kind of things - Mental and material thingsRead MoreSnapshot1702 Words   |  7 Pagesneuroscientist Mark Solms and other researchers in the emerging field of neuro-psychoanalysis have argued for Freuds theories, pointing out brain structures relating to Freudian concepts such as libido, drives, the unconscious, and repression. Behaviorism Behaviorism arose partly due to the popularity of laboratory-based animal experimentation and partly in reaction to Freudian psychodynamics, which was difficult to test empirically because, among other reasons, it tended to rely on case studies and clinicalRead MoreHistory of Cognitive Psychology1666 Words   |  7 Pageshappened in the late 1950s, something so dramatic that it is now referred to as the ‘cognitive revolution,’ and the view of mental processes that it spawned is called ‘cognitive psychology.’ What happened was that American psychologists rejected behaviorism and adopted a model of mind based on the computer† (McClelland, 2001). â€Å"Cognitive Psychology has at least three diï ¬â‚¬erent meanings. First, the term refers to ‘a simple collection of topic areas,’ that is, of behaviorally observable or theoretically

IKEA background info free essay sample

IKEA is a Swedish company which sells affordable furniture and is famous for their D. I. Y furniture. They are the largest furniture retailer in the world and currently operates in 38 countries with a total of 332 stores. IKEA’s concept is to make use of unwanted woods and transform them into useful furniture, resulting in an affordable yet stylish product. They are also well known for their delicious food served in their restaurant which is located in their store. Ingka Holding, which belongs to the founder of IKEA, Mr. Kamprad, consists of a 5 person executive committee and holds majority of the stores worldwide. The remaining stores were owned by franchise companies. Scope and Reasons for international operations IKEA’s aim is to globalize their company in order to gain popularity and earn more profit. The first store they opened was in Sweden. After which, they decided to expand their stores in neighboring countries like Norway and Denmark to monitor the situation before further expanding their company. We will write a custom essay sample on IKEA background info or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page With rising success and popularity in their products, they further expand their stores all around the world. Among all the countries, Germany brought them the highest profit. Furthermore, every company will go through the product life cycle process. The last stage of the cycle also known as the declining stage will cause a company’s revenue to decrease. Therefore, it is important for IKEA to introduce their products in other foreign markets in order to start the product life cycle all over again. Building the company’s image is also important for IKEA to earn revenue. By setting up stores all around the world will definitely help build the company’s image. It is not profitable at the initial stage. However, once the image is built, earning revenue will be a piece of cake. Making use of labor from different countries can also benefit the company. Labor varies from country to country and may be cheaper to hire in some countries. By setting up factories in such countries will cut down the production cost of IKEA. Strategic goals and choice of entry modes Strategic goals Entry modes -Franchising Companies interested in franchising with IKEA are required to pay 3% of their yearly sales to IKEA and are responsible to construct their own IKEA store. Rights will only be given if that particular country do not have any existing stores. Acting as a franchisor will allow IKEA to have more time to manage their own stores and at the same time globalize their company with least effort. Advantages of franchisor- Lower risk and low costs. Publicize company. Low commitment. Disadvantages of franchisor- Limited control over franchised stores, Lack of quality control. -FDI (Foreign Direct Investment) Direct ownership of a store in a particular country. Can occur by obtaining existing entity or setting up a new enterprise. -Obtaining existing entity, it is a fast way for IKEA to enter foreign market but requires costly negotiation. Legal requirements in certain country may prevent foreign ownership. -New enterprise. It is also a fast way for IKEA to enter foreign market but it is very costly, risky and complex. However, it provides greatest degree of control and highest profit. Company will usually choose this entry mode when it is too expensive to obtain existing entity. Advantages and disadvantages for FDI Ad- Good knowledge of local market and competitors, able to access problems immediately, greatest control over product quality and management. Disad- Costly and high risk, Legal rights issues, requires high commitment in order to manage the company. Problems and challenges in different locations.