Cross Cultural Management - Series Test-1 [ Unit1 & Unit 2]

Part A

(Write Short answers to all questions; Each question carry 2 marks)

1.       SRC

2.       Cultural myopia

3.       List MNC’s staffing Policies

4.       BATNA

5.       List barriers to communication in cross-cultural negotiation

Part C 

(Answer any one of the three questions ; Each question carry 10 Marks)

1.       Elucidate manifestation of organisation culture according to ICEBERG model

2.       Narrate cross-cultural impacts on marketing mix strategies

3.       Elucidate cross-cultural impact on HR Management in MNCs

Part C

(Compulsory question; The question carries 10 marks)

IngvarKamprad's Ikea recently recorded an annual net profit of £3.2 billion and achieved sales of £27.6 billion throughout 44 countries with 1,27,000 employees (2010).  However, what is less well-known is that Ikea is actually a not-for-profit The profit achieved has to be reinvested into Ikea and its social enterprise activities

 A strong culture can be a sustainable competitive advantage for a business. A founder with a profound sense of value is able to build a more resilient corporate culture. Ingvar Kamprad has become one of the wealthiest men ever born by making Ikea the largest and cheapest retailer of furniture in history. It sells home furnishings at prices no rival can match because it is managed with a spirit of thrift. Mr Kamprad practices what he preaches. He always flies economy-class, drives a 15-year-old Volvo, and says: “I am a bit tight with money, a sort of Swedish Scotsman. But so what? If I start to acquire luxurious things then this will only incite others to follow suit

Daily Mail, newspaper reported that it was not convinced the claim that he takes the salt and pepper sachets from cafe tables is true - but you can imagine how this helps sustain the image and reputation of a man who believes in value for money!

The Småland region of Sweden, where Ingvar Kamprad was born and grew up is a stony and rather rugged landscape where the inhabitants often were forced to get by on small means and make use of the scarce resources at their disposal. Smålanders have a reputation for being thrifty and innovative with a straightforward, no-nonsense approach to problem-solving in general and to business challenges in particular. This ‘Småland legacy’ is built into the IKEA culture and values, all over the world

DESIGN ELEMENTS OF IKEA LOGO

Shape of the IKEA Logo:

The name IKEA originates from the founder’s initials Ingvar Kampar; the first letter of his family farm named Elmtaryd, and Agunnaryd, a small town in Smaland in southern Sweden where he was born. The IKEA logo has a modern feel with bold and elegant lettering.

Color and Font of the IKEA Logo:

The yellow and blue, both primary colors, in the IKEA logo evidently highlight the colors of the Swedish national flag. The boldness of the lettering (a Futura typeface) and the contrasting colors make the emblem really leap out. The blue color represents trust, and the yellow color depicts happiness, optimism and imagination.

1. What do you understand by ‘culture’                                                          (2 marks)

2. With respect to  components of culture what do you call the “ Smaland of Sweden” and their behaviour respectively                                                                                     (2 marks)

3. “A strong culture can be a sustainable competitive advantage for a business” do you agree with the statement in the case of IKEA. State reason                (2 marks)

4. How does organisation culture get maintained across nations and as an eternal entity in any firm? How much of it true with IKEA??                                                                      (4 marks)

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