IKEA: The Business And Environment Analysis Of Ikea

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Description IKEA is a company from Sweden that specializes in good quality, affordable furniture. The company is well known for its simple Do-it-yourself concept that allows customers to purchase its items at a low price, and assemble them when they are at home. The designs are in line with current trends and continue to be relevant and attractive to consumers. IKEA's primary aim is to provide their consumers with fully functional yet affordable and trendy furniture that can meet their needs. Founded in 1943 by Ingvar Kamprad (Stenebo, 2010) when he was only 17, and it started off with selling small items such as pens and picture frames. The IKEA concept started with a showroom concept where customers could look at and experience the furniture sold. The warehouse principle was then introduced and customers could pick out the…show more content…
Corporate tax also affects the IKEA business structure, a subsidiary model (Bell, 2012) that pushes its subsidiaries to comply with regional tax laws. The political stability of the countries affects business operations. 30 years ago, IKEA's East German suppliers forcibly made political prisoners to produce the products that were sold to IKEA. Due to the fragile political nature of the country and IKEA's affiliations with the suppliers created a negative image for the company and resulted in undesirable effects for the business. Economic The individual economy of each country has an impact on the profits and growth of IKEA. Countries that are rapidly growing have a higher standard of living and employment, thus a bigger purchasing power. This will have a positive effect on the business' profits (Reynoso, 2009). Emerging economies on the other hand, has high potential for economic growth that gives companies like IKEA a hopeful

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