代写范文

留学资讯

写作技巧

论文代写专题

服务承诺

资金托管
原创保证
实力保障
24小时客服
使命必达

51Due提供Essay,Paper,Report,Assignment等学科作业的代写与辅导,同时涵盖Personal Statement,转学申请等留学文书代写。

51Due将让你达成学业目标
51Due将让你达成学业目标
51Due将让你达成学业目标
51Due将让你达成学业目标

私人订制你的未来职场 世界名企,高端行业岗位等 在新的起点上实现更高水平的发展

积累工作经验
多元化文化交流
专业实操技能
建立人际资源圈

IKEA case study

2020-05-21 来源: 51Due教员组 类别: Report范文

网课代修,网课代写,作业代写,北美代写,代写

下面51due教员组为大家整理一篇优秀的代写范文- Case Analysis,供大家参考学习。这篇文章讲述的是20世纪40年代成立以来,宜家的公司愿景一直是为大多数人提供优质、时尚、实惠的家具。宜家的主要客户群体是年轻一代和中产阶级。这样的愿景对公司的成本谨慎文化产生了重大影响。材料成本、运输成本、基础设施成本已成为该公司主要关注的问题。因此,宜家向发展中国家和地区扩张的需要,不仅源于国际化的雄心,也源于对廉价材料和资源的需求。然而,由于不同国家的法律实践和不成文的社会规则不同,宜家在国际化道路上遇到了许多困难。

Case Analysis

 

Introduction: Company Philosophy and Business Visons of IKEA

 

Since its establishment in the 1940s, the company vision of IKEA has always been to provide quality, stylish and affordable furniture for the majority. The major customer groups for IKEA is the younger generation and the middle class. Such a vision has had significant influences on the company’s cost-cautious culture. Costs of material, transportation, infrastructure have become the main concerns of the company. Therefore, the need for expansion of IKEA to developing countries and regions not only originates from the internationalization ambitions, but also from the need for cheaper materials and resources. However, IKEA has met with many difficulties in its path of internationalization, due to the different practices of law and unwritten social rules in different countries. Indeed, it is difficult to hold on to the integrity and not losing the value of company culture. Doing so would require thorough market research and investigations. Moreover, based on the understanding of the local society and business practice, comprehensive preparations must be made before entering an entirely new market.

 

The Importance of the Russian Market

 

IKEA has followed a steady path of expansion, since its early success in Sweden and North Europe. The business model of affordable, chic furnishings had proven successful, which was then copied to Western Europe countries. For a company that sells affordable products that benefit most of the population, cost is naturally the primary concern for IKEA. With the process of globalization, the price differences in raw materials opened new opportunities for IKEA to further reduce cost and generate more profit. IKEA had realized the importance of the East European as the source of cheap supplies from as early as the 1970s. By the 1980s, there had already been 20% of the total supplies for IKEA from east European countries. Successes in these countries had fastened IKEA’s speed of expansion. After the fall of the Iron Curtain, Russia was only the next logical and necessary step for IKEA. Despite the high inflation rate and average income in the country, the large population base (over 100 million customers) and the growing need for a change of look from the old, Soviet households has given the market huge potential.

 

The Struggles of IKEA in Russia

 

Before entering the Russian furniture market, IKEA has been in the East European market for years, which granted it experiences doing business in developing countries. However, they were wrong to assume that Russia had the same social circumstances as countries such as Hungary, Poland and Czech Republic. Russia had been long under the rule of the Soviet Union, which had formed a rigid set of social rules and corrupt bureaucracies. Such deep rooted problems are not easily rid of in a few years’ time. However, the huge market potentials urged IKEA to act quickly before any major competitor gain strengths. Things proved to be much more difficult than imagined for IKEA, since a society with improper law enforcement and corrupt governments are more than detrimental for the success of a foreign business. Despite the earlier successes resolving the issue of calculating import duties for furniture, the company struggled in the Russian market for over a decade.

 

IKEA’s Reaction Toward Corruption

 

It is clearly seen that many of the problems in IKEA’s expansion in Russia originates from its “rigid” anti-corruption policy. Many of the construction projects were halted due to difficulties made by the local authorities. Things would have been easily solved if they paid the bribes, which a few executives of IKEA’s Russian department did. When such actions were discovered, the headquarter of IKEA decided to fire them, showing the determination of IKEA to fight against the corrupt system. Russia is obviously a market that IKEA refuses to get go of easily, yet maintaining the integrity of the company is equally important. Therefore, despite being the easy way out, paying the bribe wasn’t an option for IKEA. When the local utility company threatened to cut the power if IKEA didn’t pay them a bribe, it was only days before the grand opening of the first IKEA store in Russia. Left with a short time to respond, what IKEA did was a clever twist, renting larger power generators so that the store remained unaffected by the power cut. This is a perfect example demonstrating out-of-the-box thinking. By solving the core of the problem, which is the cut in electricity, IKEA successfully kept its integrity while opening the first store in Russia on schedule.

 

Struggles with the Power Generator Company

 

While everybody claps for the cleverness of IKEA in solving the power crisis, more troubles were created with the company with the generator lease company. This series of event was, however, much too complicated to be solved with a bit of cleverness. With the lease company charging an incredibly improper price for the generators, IKEA and the local company went to court to resolve the matter. However, instead of the just and reliable legal system in most of the developed countries, even the legal institutions in Russia was corrupt. The judges of the local courts all favored the local company, ruling that IKEA must pay the company for the breach of contract. In addition to the endless lawsuits that IKEA got involved in, other expansion projects in the years followed were also met with all sorts of difficulties created by the local authorities. It must be exhausting for IKEA trying to deal with all the troubles, while running a business.

 

Conclusions: Lessons Learned

 

Looking back now, it is difficult to tell if things would be any better if IKEA held back the steps of expansion in Russia in 2000. However, the case has clearly shown the importance of understanding and preparation before a company’s expansion in a new country. Here the preparation has a much broader meaning than the economic and logistic factors. It should also consider the social and legislation systems of the country. An evaluation in all these areas must be made, followed by contingency plans that would prepare for unusual situations. For example, the plans should consider circumstances where the local government do not make fully justifiable decisions, or the need for backup plans that normally are necessary in other countries. By establishing a systematic and evolving way of crisis handling, IKEA could have avoided many of the troubles encountered in Russia.

 

51due留学教育原创版权郑重声明:原创优秀代写范文源自编辑创作,未经官方许可,网站谢绝转载。对于侵权行为,未经同意的情况下,51Due有权追究法律责任。主要业务有essay代写、assignment代写、paper代写、作业代写服务。    51due为留学生提供最好的作业代写服务,亲们可以进入主页了解和获取更多代写范文提供作业代写服务,详情可以咨询我们的客服QQ:800020041。 

 

 

 

上一篇:The argument between philosoph 下一篇:A Discussion of Sima Qian and