The Impact of Globalisation - Ikea

3499 WordsOct 22, 201314 Pages
IKEA The Impact of Globalisation Definition of Globalisation Globalisation is the process by which organisations or businesses start operations on an international scale by committing facilities and resources in foreign countries. The International Monetary Fund, (IMF) continues to believe that this will lead to global convergence through aspects of trade and transactions, capital and investment movements, migration and the movement of people and dissemination of knowledge. Mission Statement - “to create a better everyday life for the many”. Focus Areas & Goals:- Children: IKEA believe that children are the most important people in the world. By supporting their local communities, they hope to assist in children to achieve…show more content…
IKEA has embraced technology and deploy a “Splash Global Gateway” hosted website allowing their customers worldwide to choose their location & language according to their location. Their advertising campaigns are now seen through many social media websites and forums globally such as Facebook, Twitter, You Tube and Goolge Plus (+). However, 70% of their annual advertising & marketing budget is still spent on the IKEA catalogue with over 198 million copies being printed last year in 56 editions and 27 languages! (IKEA (2011). IKEA Small Spaces – Small Ideas [Online Video] 27th June 2011) In the mid 1980’s, the Chinese government allowed FDI into the country, but this was highlighted in the real estate industry in the 1990’s. As the construction of commercial and residential establishments increased, this boosted the requirement for home furnishings and decorations. In the mid 1990’s foreign owned enterprises were permitted to operate selling to the domestic market. (economywatch.com 2010. China Foreign Direct Investment) IKEA took the initiative and by committing financial and human resources, moved its business into China with the first store opening in 1998 with the Shanghai outlet being the largest in Asia by 2004. Today, China has 3 stores in the top 5 largest IKEA stores in the world. The store which opened in Beijing in 2006 is the
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