...Assessment Support Pack SCQF level 8 02 fro .7 5. 66 .1 34 International Purchasing and Supply — H2X3 35 80 www.sqa.org.uk © Scottish Qualifications Authority 2013 SQ A Published by the Scottish Qualifications Authority The Optima Building, 58 Robertson Street, Glasgow, G2 8DQ Lowden, 24 Wester Shawfair, Dalkeith, Midlothian, EH22 1FD C hi na Fi le The information in this publication may be reproduced to support SQA qualifications. This publication must not be reproduced for commercial or trade purposes. This material is for use by teaching staff only. do w nl oa de d Publication date: April 2013 Publication code: H2X3 35/ASP001 by ce nt re _3 00 54 m on 10 /1 0/ 20 14 08 :4 0 Introduction This Assessment Support Pack incorporates assessment templates for both Higher National and National Qualifications (other than CfE) and can be used in a variety of ways including, for example: to generate evidence which demonstrates that learners have achieved all Outcomes and Knowledge and/or Skills for the Unit as exemplification of the standard of performance expected of learners achieving the Unit, ie as a benchmark to help centres develop an appropriate assessment for the Unit to give teachers/lecturers/assessors new ideas as a staff development tool Security and confidentiality The information in this publication may be reproduced in support of SQA qualifications. Where the publication...
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...| | |Entry Proposal for IKEA | |International market entry to Puerto Rico | | | |International Retailing | |Tuesday 12th March 2013 | | | |Zoe Cole | |Aoife Hughes | |Tinuola Omoyele | | | | | Contents Terms of Reference / Executive Summary 2 Introduction 3 Main Body / Findings 4 References 10 Terms of Reference / Executive Summary In this report, we propose IKEA expand its international market into San Juan, Puerto Rico, South America as mode of entry. The purpose of this report is to make a case for the expansion of IKEA into a new market. The reason we chose Puerto Rico is because the research has already been completed for such a move, and only narrowly missed out to the Dominican Republic as a new destination...
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...IKEA: Expanding globally Introduction……………………………………………………………………………….3 1. A learning organization: understanding the culture of learning and innovation….3 2.1 General concept of learning organization……………………………………3 2.2 IKEA – a learning organization in various market:………………………….4 2. IKEA’s internationalization strategy ……………………………………………..6 3.3 Internationalization strategy from 1974 onwards ……………………………6 3.4 From the perspective of internationalization theories: ………………………7 3. Issued considered in international market research and opportunity analysis: ….9 3.1The Japanese and Chinese market: ……………………………………………9 3.2 The Brazilian market: ………………………………………………………..9 4. IKEA’s entry mode strategy: …………………………………………………...12 5.5 Subsidiaries………………………………………………………………….13 5.6 Franchising………………………………………………………………….13 Summary Introduction Globalization is now playing an important role in the growth of economies across the world. The rapid growth of its process has led to social, economic, technical, cultural and ecological interdependence among nations. It also provides new and potentially profitable markets, increases firms’ competitiveness, facilitates access to new product ideas, manufacturing innovations. Thanks to its numerous advantages, the world is moving closer together and a great deal of organizations has great opportunities to expand their market to foreign ones. IKEA, the world’s largest furniture retailer, did not...
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...Obs: don`t forget to answer the questions in the end of the case study. 1. History (Explain) 2. IKEA is considered one of the success stories. How have they achieved this success? What barriers have they overcome? 3. What is the basis of IKEA´s differentiation strategy? 4. What the best practices IKEA uses as it pursues differentiation? 5. How does work IKEA´s distribution system? How important this system is for IKEA international success? 6. Which ones are IKEA´s main global competitors? 7. Explain IKEA business model? 8. How does it work the manufacturing process? Where does production take place? 9. Is product adaptation related to IKEA strategy? Explain. 10. What is IKEA entry strategy for a new market? Is the store location weighted in the strategy? Explain. IKEA has a very conservative entry strategy for a new market because it will never enter a new market with a retail store. Instead, they opt to form connections with different suppliers in the market for market knowledge and recognition before making the leap of opening a retail center. In the past, IKEA has entered new markets in Europe and North America by entering through company-owned subsidiaries. Now, however they tend to enter through franchising in unknown small and high-risk markets. The franchisees are carefully researched and evaluated with only the best being granted franchise status. IKEA headquarters continue to be very involved in the store, mandating a base 12,000 products and auditing...
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...Author Author Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Strategic Marketing Plan for IKEA in INDIA [Document subtitle] Contents Introduction 2 About IKEA 2 1.0 Analysis of Indian Market 3 1.1 Micro Analysis 3 1.1.1 PESTEL Analysis 3 1.2 Micro Analysis 4 1.2.1 SWOT Analysis 4 1.3 Impact on Hofstede Culture Dimension 5 a) Collectivism vs Individualism 6 b) Femininity vs Masculinity 6 c) Avoidance of Uncertainties 6 d) Power Distance 6 1.4 Porter’s Diamond Model 7 2.0 Global Marketing Objective 7 2.1 Porter’s Generic Strategy Mix 8 2.2 Ansoff’s Marketing Strategies 8 3.0 Mode of entry 9 4.0 7 P’s of Marketing 10 a)Product 10 b) Process 10 c) Price 10 d) Physical evidence 11 e) Place 11 f) People 11 g) Promotion 11 References 0 List of Figure Figure 1: SWOT Analysis 5 Figure 2: Hofstede Dimensions 7 Figure 3: Comparison of Entry Mode 9 Introduction India is developing country, populated with 1.2 billion people. India’s economy is of very worthwhile. The current analysis shows India is expected to be considering in Top 5 economies in the world. Due to powerful economic development in past few decades, the living standards of Indian nation are improved and improving day by day. The people of India are establishing themselves in the field of information technology and in other industries. They also step up in urbanization and trend of using foreign band has increased much. The retailing...
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...Background IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture such as beds, chairs, desks, appliances and home accessories. The company is the world's largest furniture retailer1. Founded in Sweden in 1943 by Ingvar Kamprad, who later became one of the richest people in the world, 2 The Company is known for its modern architectural designs on various types of appliance and furniture, often associated with a simplified eco-friendly interior design3. In addition, the firm is known for the attention it gives to cost control, operational details and continuous product development, allowing it to lower its prices by an average of two to three percent over the decade to 2010, while continuing its global expansion.4 As of October 2011, IKEA has 332 stores in 38 countries. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009.5 On February 17, 2011, IKEA announced its plans for a wind farm in Dalarna County, Sweden, furthering the furniture giant's goal of running on 100 percent renewable energy.6 The IKEA website contains about 12,000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors to the IKEA websites in the year from September 2007 to September 20087. IKEA is the world's third-largest consumer of wood, behind The Home Depot and Lowe's.8 Things were going so well for the company, that in 1973, the company's German executives...
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...of IKEA in the Japanese market and Chinese markets Abstract Date Level Authors June 4, 2008 Master Thesis EFO705, 10 points (15 credits) Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) Internationalization of IKEA in the Japanese and Chinese markets Leif Linnskog Why did IKEA internationalize into Japanese and Chinese markets? And what factors did influence IKEA’s success in Chinese market but failure in the Japanese market of the first round? The aim of thesis is to understand the internationalization of IKEA in Asia by comparing between Japanese and Chinese markets. This master thesis based on qualitative approach in order to investigate the internationalization of IKEA in Asian markets as a case study since it is beneficial in understanding the observation and explanation of behavior in the certain cases. IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while internationalize into Chinese market because of supporting environments such as political, social and economic conditions as well as transaction advantage. To success and failure, psychic distance and learning, strategic decision making process, degree of adaptation of retail offer, entry strategy, characteristics of organization and management characteristics are the influencing factors on internationalization of IKEA in the Japanese and Chinese markets. Internationalization, IKEA, retailer...
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...IKEA MARKETING CASE 1. 1. Until now IKEA international marketing strategy has been tightly and centrally controlled by corporate headquarters. However, high local' pressures emerging due to demographic and cultural differences might force the local IKEA shops to take strategic initiatives to respond to local market needs. In this connection discuss the regional headquarters and transnational organization (presented in Chapter 12) as hierarchical 'entry mode' alternatives to the very centralised strategy emanating from IKEA's headquarters. The advantages of having regional headquarters ( feature of divisional structure) are : flexible reaction to local conditions, accountability and be more competitive. However, this implementation could face some problems: strategic focus, economies of scale, loss of efficiency and costs, and finally large commitments. If they pass from regional headquaters to a transnational organization they will obtain differents advantages related to focus on global integration: efficient resource allocation, knowledge Exchange, economies of scale, local focus. But some disadvantges would appear like corporate identity and complexity of the process. 2. IKEA has not yet explored joint venture and strategic alliances strategies. Evaluate the pros and cons regarding these two entry strategies versus the traditional IKEA entry mode of franchising. As we know, strategic alliances appear when parterships between firms where their resources and capabilities...
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...one human group from another... Culture, in this sense, includes systems of values; and values are among the building blocks of culture’. The cultural dimensions measure the cultural distance between a home and a host country. The dimensions that influence entry mode decision making are ‘power distance’ and ‘uncertainty avoidance’. The firm and country characteristics influence entry mode decision making and they are divided in 5 groups: Internal factors, product, desired more characteristics, transaction-specific factors and external factors. While entry modes can be distinguished in 3 groups of which this study only focuses on contractual agreements and fully owned subsidiaries. The conclusion drawn from this literature review states that internal factors such as firm size and international experience determine the resource commitment of a firm. High resource commitments are needed to establish fully owned subsidiaries. ‘ Control’ is a factor which is part of the desired mode characteristics and is influenced directly by cultural distance. A high cultural distance between the home and host country, requires a high level of control by the parent firm on their foreign activities, which results in a hierarchical entry mode. The academic recommendations point out that future research should be devoted to industry characteristics...
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...corporate strategy…………………………. 2.1 IKEA business and corporate strategy 2.2 Micheal Porter’s Five Forces Model 2.3 IKEA as a competitive advantage Chapter 3 Why IKEA failed in USA………………………………….. 3.1 Cause of the failure 3.2 Different management styles in USA 3.3 Different consumer decision process 1.0 INTRODUCTION 1.1 Scope 1.2 Objective 1.3 IKEA Company Background IKEA is a Swedish furnishing company and was founded by Ingvar Kamprad 1943. It started as a one-man mail order company in a farming village in Southern Sweden called Smaland. (IKEA, 2011a) Today IKEA has become a big international company which has stores in 44 countries worldwide. The IKEA Group has grown into a major retail experience with 123,000 co-workers and is generating annual sales of more than 21.5 billion Euros. (IKEA, 2011b). The sales growth is shown in Appendix 1. The IKEA concept started in the 1950’s with catalogue marketing combined with a showroom where customers could see and touch IKEA products. The company’s three distinct features were function, quality and low price. Problems with suppliers led the company to start purchasing from foreign producers in Eastern Europe. During the 1060’s the concept was taken even further by introducing the warehouse principle. A huge store in Stolkholm was opened where customers picked the products from the shelves themselves. IKEA turned a capacity problem into a new way of...
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...Internationalization of IKEA in the Japanese market and Chinese markets Tutor: Authors: Group: Date: Leif Linnskog Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) 2022 June 4, 2008 Master Thesis EFO705, 10 points (15 credits) – Spring 2008 International Business and Entrepreneurship – MIMA Program School of Sustainable Development of Society and Technology Abstract Date June 4, 2008 Level Master Thesis EFO705, 10 points (15 credits) Authors Wannapa Chaletanone (05-11-1982, Thailand) Wanee Cheancharadpong (03-09-1983, Thailand) Title Internationalization of IKEA in the Japanese and Chinese markets Supervisor Leif Linnskog Problems Why did IKEA internationalize into Japanese and Chinese markets? And what factors did influence IKEA’s success in Chinese market but failure in the Japanese market of the first round? Purpose The aim of thesis is to understand the internationalization of IKEA in Asia by comparing between Japanese and Chinese markets. Method This master thesis based on qualitative approach in order to investigate the internationalization of IKEA in Asian markets as a case study since it is beneficial in understanding the observation and explanation of behavior in the certain cases. Conclusion IKEA is considered as retailer internationalization who expands into Japanese market as a result of deregulation and asset-based advantage while internationalize...
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...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study ...
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...Management IKEA Case Study Sharleen Suwaris-SUSND11 Sharleen Suwaris Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses the strategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing a background into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study further says how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordable for them to purchase IKEA products. Some of IKEA’s main markets are in three of the fastest growing markets such as Russia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and other production workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEA produced standardized products however; this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEA and its sustainability. IKEA Case Study ...
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...Case Report Marketing Case 8: IKEA’s Global Strategy: Furnishing the World I.Situation Analysis IKEA is a privately-owned international furniture manufacturer known for its low prices and unique style. The company’s vision is to create a better everyday life for its customers by offering a great selection of well-designed, practical home furnishings. Since IKEA has chosen this sort of affordable and distinctive marketing strategy, the company has been very successful in its expansion throughout the world. IKEA has been successful with a relatively standardized product and product line in a business with strong cultural influence. This is because: The founder formulated IKEA’s mission which states that IKEA offers wide variety of home furnishings of good design and function at prices so low that the majority of people can afford them. Such wide variety could fit a wide variety of cultures and tastes. The case studies also states that the assortment of goods are universally accepted. The principal target market of IKEA is similar across all countries and regions and is composed of people who are young, highly educated, liberal in their cultural values,white collar workers, and not especially concerned with status symbols.Most people in the IKEA target market are liberal in their tastes,preferences and cultural norms hence making them easy to accept and appreciate IKEA’s standardized products. II.Problems Found in Situation Analysis ...
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...Ikea is an international business that was founded in 1943 by a Swedish boy at the young age of 17. At the time, his father had given him a reward for excelling in his studies which he then used to establish his own business. Ikeas current organizational structure however is much more complicated. It is now owned ultimately by a Dutch trust, and controlled by the Kamprad family. Various holding companies also handle several different aspect of Ikea’s operation, such as franchising, manufacturing, and distribution. These activities are separated into two groups that are based out of the Netherlands. The first group is the INGKA Foundation that owns the IKEA group. Second is the INGKA Holding B.V. this is the parent company for all IKEA group companies. Other key people involved in Ikea are the founder Ingvar Kamprad, the group president and CEO Anders Dahlvig, and Hans Gydell who is the President of Inter Ikea group. The name Ikea comes from the first two letters of the boy’s name, which is Ingvar Kamprad along with the first letters in his farms name and the village in Sweden that he grew up in. Ikea originally sold pens, picture frames, table runners, jewelry, wallets and nylon stockings with the idea of meeting consumer needs with products at reduced prices. Today Ikea is now a major retail experience with 128,000 workers in 253 stores spanning across 24 countries while generating annual sales of more than 21.1 billion euros with their top five sales in Germany, USA...
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