The reason of this dynamic and disruptive world may be the uninterrupted change of the international economic environment that demands continuous development of the social sciences and above all in the areas associated with business. …
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Many different areas of research focus on the change that is required according to their perception of importance of this change. First focus of great importance is on nation states, and competitiveness and comparative advantage related to them. The second major focus is on the establishment and administration of industrial companies, which refers to the establishments associated with mass production systems, and has undergone a decline and more pliant forms of industrial organization have demonstrated successful. A third focus is on the changing dynamics of competition among different organizations (Barlett and Ghoshal, 1998). Countries differ from each other in many aspects for which the management of a multinational company must decide if such differences are substantial enough to be reckoned. The important question here arises is that if there is a need for the organization’s behavior to conform to the international multifariousness or there are other ways to subdue the restraints enforced by cross-border diversity (de Wit and Meyer, 1998). In simple terms, globalization refers to exposure of global giant firms like IKEA to an enhanced global cognizance and interdependence. IKEA, the business of retail home furniture and house ware worldwide, is frequently used as a good example of an organization that has a speedy internationalization process and is seen as a king of globalization as compared to many other local rivals in the furniture industry (Hollensen, 2007). The purpose of this paper is to analyze and demonstrate as to why and how the IKEA has traded globally, and what strategies the company has formulated and implemented in order to respond to actual and potential impacts of globalization. According to IKEA cardinal activities such as eating, sleeping, storing items, socializing etc necessitate furniture and practical products that solve crucial human needs. Moreover, the immense majority of people have limited funds and space in their houses. The IKEA operates in a wide range of well-designed, functional home furnishing products that meets these needs by offering at prices so low that as many people as possible can afford them. The IKEA range contains products for every part of the home that have the label "Design and Quality, IKEA of Sweden" and are sold in IKEA stores (IKEA, 2011). As of October 2011, IKEA operates 326 stores in 38 countries. IKEA offers more than 9000 products which can be divided into four "Style groups": Traditional, Scandinavian, Modern, and Popular. The company's vision is "to create a better life for the many", according to one executive (Collins, 2011). The company’s global expansion is forced by the founder’s “intuitive quest for new opportunities” and a history of successful collaborations with worldwide suppliers (Grol et al 1997, p.93). Theoretical framework Economic globalization is the worldwide integration of economies by trade and investment flows, and the production of goods and services as well, in order to increase and intensify international competitiveness. It can also be defined as the process of stimulating and speeding international integration of markets that ensues an integrated global market in absence of national economic borders. In distinction from others, the economic visibility of globalization incorporates the development of global corporations and global networks; the far-flung
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(Globalization: Strategy and Impacts on IKEA Assignment)
“Globalization: Strategy and Impacts on IKEA Assignment”, n.d. https://studentshare.org/business/1392907-international-bsuiness.
Critical reflection : p.16 3. References : p.18 Part A: Analysis Introduction Ikea is one of the most prominent home furniture manufacturers in the world. Headquartered in Sweden, Ikea company was founded by Ingvar Kamprad. In the 1940s-1950s, Ingvar Kamprad shaped the development of IKEA into a furniture retailer.
These extensions used to arise from the movements of ideas, things and people. The term globalization cannot be defined in terms of integration or internationalization. Globalization depicts the interaction across several cultures of different macro-social forces (Dasgupta, 2004, p.214).
Globalization has added dimensions to all kinds of fields which people avail to intermingle with one another in a better way. Although globalization is generally talked about in a positive manner and the positive consequences are overemphasized upon, yet the fact that globalization has exposed the world to a whole range of challenges cannot be denied.
Overview of IKEA Define IKEA In this age of stiff economic condition and tough competition, IKEA is one of the recognised brands of Sweden, dealing in the segment of ready-to-assembled furniture’s, fittings, appliances, and many others stylish accessories of the residence.
Global business creates a situation, in this case an economic meltdown. The state has to respond, but they have multiple stakeholders. Contributing to renewable energy is partially responsible state policy, but it is also partially patronage to energy firms; however, the
Most manufacturers now find it cheaper to produce and distribute their merchandise in other countries. At the same time, consumers are finding it cheaper to buy such products; this promotes international commerce and enhances other aspects of business like transport and
Employees that are motivated will enhance the productivity of the firm. On the other hand, employees that are not motivated will have a negative effect on the productivity of the organization. For instance, IKEA is renowned for production of quality products. This is directly proportional to the motivation it gives its employees.
The 20th century mark a new era in international trade as the globalization movement took off after the Second World War. The globalization movement has interconnected the economies of the over 200 countries around the world. Globalization can be defined as the