It is essential for leaders of IKEA to understand the role of HR which can help to find local talents to improve the performance and productivity of the regional business. One or two experienced HR consultants need to be assigned to the host market from the head office to assist in drafting appropriate employment principles. When facing requirements to hire employees, it should use localization policies for the purpose of finding local talents and to make contributions to the labor market of the host country. Moreover, HR practitioners should be skillful at using HRM functions to manage the diverse workforce and to motivate them be more engaged in their jobs. Since the role of HR has changed significantly these years which will be more important to ensure talents can be fully used, and the company should recognize this change in the modern society and to understand how to improve the practice (Holbeche, 2013). If so, it can believe human wisdom to be displayed for the company to deal with challenges and manage changes.
Also, it is essential to recognize that the concern of capabilities and resources should take information technologies into serious account. In the 21st century, if companies cannot use Information Systems (IS) effectively, in most cases, they will lose lots of opportunities to drive business (Merali, Papadopoulos & Nadkarni, 2012). In such scenario, it is important for internal decision makers to consider more about how to reinforce the IS practice when doing business in the host market. If information systems can be well used, the company can believe costs will be controlled to optimize the entire operational process. No matter engaging in managing customer relationships or conveying information within the supply chain networking, Information Technologies (IT) can ensure difficult tasks will be simplified to improve the effectiveness.
Still, it is important to improve the financial management for the purpose of better dealing with profit and loss statement issues. In other words, relevant financial activities should rely on talents of financial experts to ensure the company can maintain sufficient capitals to manage business processes. Aside from financial staffs, accounting employees are needed to be given attentions for the purpose of improving the ethical practice to let the financial statement can reflet the real situation of the company (Brigham & Ehrhardt, 2011). If so, decision makers can believe the future development in the host market will help to improve its brand reputation.
Moreover, the concern of the budget cannot be ignored when engaging in business activities in the target market. The budget setting should be clear to reflect which aspects have been invested by the company for the purpose of promoting its brand (O'guinn, Allen & Semenik, 2011). It can help decision makers to understand more details in terms of future engagements in the host market. Following that, measurements can be used to assess results for the company to make correct adjustments to seek better development.