Research the Ikea company. And one sheet for the IFASseparate from your assignment that will be written in word. You will be graded on your knowledge of the software, on your ability to communicate in writing and present your arguments, and on your knowledge of math in building the tables.
These factors affect the companies in terms of legal issues and government regulations and define the formal and informal rules under which any businesses must operate when in that specific country. Political stability, Tax policy, Employment and labor law, Tariffs, Trade restrictions, etc The income after tax of any firm in a market is affected by the level of corporate taxes imposed by the political authorities.
Therefore, the taxes reduce the profit of the businesses. In addition to the corporate tax, tariffs and trade restrictions affect the business as well.
Some of the main reasons of imposing trade and tariffs are protecting new industries, local employment, and national security. When tariffs are imposed, on imported goods, the price of those goods will increase, which will benefit the local manufacturers who are not obligated to reduce their price.
Political stability of the country is the main component of the political factors that affects the businesses. In Poland, for example, after the communist government collapsedthe political situation of the country dramatically changed; affecting the relationship between buyers and seller of the company.
Ella Odrowaz, November 10, Economic factors Represent the factors which affect the business decision making and operations of the firms. Inflation rate, Interest rates, Economic growth… The economic growth of a market influences the revenue of its firms.
For instance, countries with rapid growing economy provide high standard of living.
The emerging economy China, Vietnam, India Other factor such as the cost of labor has some impact on businesses as well. In countries like China and India popular for their low-cost yet skilled labor, offers the company high profit margin.
That is the main reason why IKEA opened a manufacturing firm in China, improving the low-cost strategy of the corporation. Social factors Refer to demographic and the cultural aspects of the environment.
Age distribution, Population growth rate, Emphasis on safety, Career attitudes. Changes in demographic variables age, family seize For example, aging population such as Japan and Germany are less likely to buy furniture.
The demands of some products are influenced by demographic changes. For example, a large shift from rural to urban area by the population will lead to an increase in the demand for furniture low-cost since new families need to settle down.
IKEA will become one of the best choices. Therefore, the revenue of the company will increase.
Technological factors These factors influence the cost quality of the outputs. They determine the barriers to entry as well as the minimum level of efficient production. Furthermore, technology improvement in the retail section such as mobile and online payment, member cards; help the consumer to experience easier The company has unique attribute in the industry such as self-assembly.
This attribute allows the company to transport its products in flat-packs dropping the risks of damage the furniture while delivering the product. The increasing popularity and reliance of businesses on social media as an unconventional marketing channel benefits firms by increasing awareness and reach amongst target market, market ability factor, increased website traffic, ability to develop community and relationship with customers Forbes.IKEA is a prime example of how companies that have reputations for being socially responsible somehow get away with exploiting the system of economic development subsidies and with being hostile to unions in the United States -- while cooperating with them in countries (such as IKEA's native Sweden) where they are well established and protected.
attheheels.com Employee Engagement Employees at attheheels.com are actively engaged with the community and report engaging in community outreach activities monthly. Additionally, attheheels.com employees typically meet outside of work once a month. 9 Swedish heritage = respect for nature = minimize impact on environment – IKEA believes we can be a good business while doing good business Who We Are: A Sustainable Company Sustainability is a cornerstone of our business – Smart product design & production .
IKEA Marketing Strategy and practices: A Case study. April 27, By Abhijeet It is also a reason behind the increasing presence and popularity of IKEA globally.
The consumer demographics are also changing globally and the focus is now on the millenials. People and environment are an important focus area at IKEA. This has helped it.
IKEA's Billy bookcase, Lack side table and Ivar storage system were best-sellers worldwide. The customer spending pattern was also similar across countries. Despite these similarities, IKEA realized that to strengthen its presence in the global market, it was necessary to localize.
You are directed to study the actors close to the company that affect its ability to serve its customers-departments within the company, suppliers, marketing intermediaries, customer .