Marketing Analyses Ikea

Rule 3 of the Companies (Incorporation) Rules 2014 say, only a natural person who is an Indian

Many developing nations are trying to resist foreign ownership of their companies because of nationalist sentiments and fear of foreign political and economic influence. They fear that it will leave their resources more vulnerable to exploitation by the foreign companies.

The purpose of this report is to define & understand how a MNC effect or effected by Home & Host country environments. Due to increasing global competition, changes in economic & political system business organisation are facing rapid change in business environment. The world is separated politically & financially into 200 countries separate countries where each country has its own laws, judiciary system and boundary regulations. We will be discussing how a MNC adapt these differentials and contribute to improve the economy and standard of living of the society. Multinational corporations have a huge impact on the host country economy as well as there are some problems also created by MNC in host country. For the view of

All sectors are not accessible to the foreign companies. Government has categorized the industrial sectors in to three categories i.e. encouraged, restricted and prohibited. Different industries have different market entry and operation characteristics as per categorization by the government. Resource based and institutional based review suggests major concerns for multinational companies including Government policy regarding foreign ownership, Government procurement, inefficient intellectual right protection, support to domestic companies, unskilled manpower, vast geographical difference and bureaucracy. Foreign companies should have complete understanding and savvy strategy to deal with major practical

The increase in globalization and protectionism is not only a challenge but an opportunity as well for the management of IKEA. The challenges that are being faced are competing against undisclosed forces and sourcing the top quality products from all over the world. The organization has a probability to enter the emerging markets through partnerships and joint ventures in order to explore these new markets. But at the same time, the company has to deal with the protectionist policies of countries in which it runs its business because of the risk that the host countries might impose high tariffs on imported goods.

Now few MNC companies entered into India. The new entrees have taken of 15% of the projects from the existing players. In our industry there is a huge capital investment is required and it is not very easy to enter into the industry. Like L & W Pvt. Ltd

Looking into the sourcing of a multinational company is very important as we would know risks of investing on that company well. Inter IKEA Holding S.A. is a fully owned by Interogo Foundation in Netherland, which is an enterprise foundation registered under Liechtenstein law. It has no listed their shares on any market in world, the company elaborates that, they wish to create ownership structure that stands independence and long-term approach. Their profit will only be reinvested into IKEA Foundation for charitable purposes and keeping purpose for future investment. As a result, they used Euro (€) as their main currency.

With an advent of the New Economic Policy (NEP) reforms, Chand (n.d) states that FERA (Foreign Exchange Regulation Act, 1973 was abandoned and FEMA (Foreign Exchange Regulation Act) was enacted. Due to this there were huge number of Multinational Companies (MNC’s) entering the Indian market. Industries of high technology and high investment priority were provided automatic permission of Foreign Direct Investment (FDI) up to 51% of

If you see carefully, the first letters from his name were taken for the company 's name and it became IKEA. IKEA the meaning in Greek means home and that is why the company manufactured home products for consumers (http://en.wikipedia.org/wiki/IKEA).

Lastly, Whirlpool 's involvement in globalization with a specific end goal to reveal insight for future methodologies or building globalization gets ready for little and medium undertakings planning to have worldwide strides.

The supply chain needs tight control and high levels of visibility to keep costs down and avoid obsolete inventory and/or stock outs.

In august 2008, IKEA had total 253 stores where 560 million people visited. Here the total sales became 23 billion Euros. Considering 20% sales profit here IKEA’s average customer per store and cost per store are given below:

In 1995, IKEA met a problem that its main supplier, Indian rugs, used the child labor to produce products, although they had signed an attachment of the contract to ban employing child labor. In addition, a German documentary maker was about to broadcast the problem of child labor on German television and also invited an employee from IKEA to have a live discussion in the TV program. Marianne Barner, the leader of IKEA, must find a great solution to this serious issue to both save her business and the corporation’s brand image. In this issue, IKEA was not the one who produced products, so they might not realize the use of child labor in the process of production. In addition, child labor

This internationally competitive industry and sustainable growing economy of India shows the bright future of FDI in India. India is estimated to require around US $ 1 trillion during the 12th Five-Year Plan period (2012–17), to fund infrastructure in sectors such as roads, airports and ports. The government is in the process of liberalizing FDI norms in construction activities and railways, which could attract more investments to meet the target.

India could improve its economic performance in a number of ways by removing barriers to foreign direct investment and encouraging deregulation and privatization. Business would be able to operate more freely in India. Foreign firms are attracted by the size of India's market, but they are also dissuaded from investment because of the stifling bureaucracy and high levels of corruption. The bureaucracy also dissuades new business formation.