Athena Leila S.

Bordan BSBA MM3A

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?

In order for a business to succeed today, it must diversify and alter not only the products or services it
provides but also the organizational structure to reflect the location of its operations. IKEA, on the other
hand, has proven that it can manage operations while using a centralized Swedish organizational
structure in 25 countries with 276 locations, including 37 franchised stores. being one of the most well-
known Swedish furniture manufacturers with a presence all over the world. Contrarily, a large portion of
IKEA's cultural fusion closely resembles Swedish neutral culture. It is essential to maintain the
distinctiveness of local culture. IKEA may harbor prejudices against certain cultures, though. In addition
to expanding globally, this company is dedicated to preserving numerous elements of Swedish culture.
Despite the fact that this strategy is working well for the business, it would be preferable to effectively
adapt to the global market rather than remain a country-specific business for a worldwide organization.

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?

I believe that as long as IKEA continues to offer their customers high-quality goods at reasonable prices
with friendly service, there won't be any problems in the near future. This is despite the fact that the
store is set up like a maze and customers must walk through every department. This strategy sets IKEA
apart from its rivals and exposes consumers to all of the products they have to offer. As a result, there is
a good chance that customers will buy anything they see due to the product's perceived quality and
price. To keep customers, the business must maintain its level of quality and affordability, and it must
continually innovate its offerings.

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?

A company may find it difficult to manage numerous suppliers, especially if they are international. From
the standpoint of a standard global strategy, it can be compared to a web. The business must identify an
appropriate and applicable strategy or approach that will aid and direct them in managing their global
suppliers. It will be advantageous for them to create a standardized system where it does function. The
company will be able to manage suppliers in a more organized manner with the help of a standard
system. They can appoint managers who have a reputation for In every nation where their suppliers are
based, they maintain their standards. watch out for, and Ensure that the quality standards set by the
company are met. The business must in order to maintain positive relations and a common ground,
value its relationship with the suppliers is advantageous to both. This will enable the business to simplify
the challenging task of control of the suppliers.