INTERNATIONAL BUSINESS AND TRADE

MIDTERM TASK PERFORMANCE

ROSAN D. SUAN BSBA FM3A

1. IKEA is very Sweden-centric; that is, they like doing it the Swedish way, from the names
of the furniture to the management of the company. Sweden is a neutral country, so maybe
this is the way to go for a global company, but is it smart to be too centric to a specific
country when you are a global corporation?

Answer: For me, it depends, but I don't think it's a good idea to join a global corporation. Here's
why. IKEA's distinct blend of minimalist functionality, innovation, and design simplicity has
been widely admired but little imitated. The ability to appeal to global corporations expanding
rapidly across territories and new markets all over the world. They one of the most world's
largest mass-producing furniture companies, with products sold in the United States and around
the world. It has grown in popularity among people looking for low-cost furniture because the
company offers competitive pricing and all options are easily accessible to customers under one
roof.

However, they initially were denied entry into the United States. Because they fail to meet the
customer's expectations and needs they failed to identify the cultural demand, and they also had
competitors who produced furniture in their country. It also happened when they first approached
in China because balconies are very common in Chinese homes, particularly in those with
limited space. In this case, if they were to enter a global corporation, they should adopt and meet
the qualification needs of consumers in order to gain more profit. Even if they have many
competitors, as long as they produced the rights of needs and wants of consumers, it would have
a significant impact on their company and the global corporation.

2. IKEA is also very “IKEA-centric.” For example, the IKEA store itself will be laid out
like a maze that requires customers to walk through every department before they reach
the checkout stations. This forced path can seem constraining to their customers who
naturally are more free-spirited than the IKEA management model. Can this spell trouble
in the near future, or is the IKEA way a sustainable business model?

Answer:
.
3. Strategically, having more than 1,000 suppliers result in a complex task of managing
those suppliers, ensuring the quality of the products, and maintaining the IKEA brand.
While we will address global supply chains later on, from a global strategy standpoint, how
would you manage IKEA’s global suppliers?

I think the layout is good. It requires customers to walk through every department
before theyreach the checkout stations. The stores are often structured as a
one-way layout, leading customers counterclockwise along what IKEA calls “the
long natural way.” This “way” isdesigned to encourage customers to see the store in its
entirety. Cut-off points and shortcuts existbut are not easy to figure out. So, IKEA still
provide cut-off points and shortcuts and only can befound by more free spirited people.
And I think the IKEA “way” is a sustainable business model,because it gives much
experiences for customers.