Critical Issues in Business Management Doc

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Added on 2020-11-23

Critical Issues in Business Management Doc

Added on 2020-11-23

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CRITICAL ISSUES INBUSINESS MANAGEMENT

TABLE OF CONTENTSINTRODUCTION..........................................................................................................................1Main body.......................................................................................................................................11. Analysing as well as discussing the drivers of globalization for IKEA.............................12 Strategies adopted by the Ikea Company for entering into Indian market..........................23 Bureaucratic and political challenges faced by IKEA to gain approval to enter India.......3CONCLUSION..............................................................................................................................5REFERENCES...............................................................................................................................6

Critical Issues in Business Management Doc_2

INTRODUCTIONBusiness owner has to face the several critical issues when establishing as well as runningbusiness in international market. The several problems which are faced by an organization inglobal environment have direct as well as significant impact on the business performance. Themajor issues faced by an enterprise in global environment are high level of competition whichmight have negative impact on the sustainability of firm in international market. The positiveeffect of globalization is that it has provided organization an opportunity to expand businessoperations. The present report has focus on analysing the drivers of globalization in context ofIkea Company. It also emphasizes on identifying the reason for delay by company in enteringinto Indian market.Main body 1. Analysing as well as discussing the drivers of globalization for IKEAGlobalization is considered to be as complicated procedures, as it involves the quicksocial changes. The positive impact of globalization is that it allows firm to expand business.Negative impact of internalization is that it increases the level of companies which has direct aswell as major effect on business performance. Globalization enables business entities to developvarious abilities and support organization in increasing competitive strength.Drivers of globalization There are several drivers of globalization these are:Customer’s drivers: The purpose of IKEA Company is to cater the need as well as demand ofcustomer in the market. This factor has encouraged the firm to expand business operation. Aswithout expanding the core business Activities Company will not be able to fulfil the demand ofcustomers. It is required by an organization to standardize their goods as per the needs as well asdemand of consumers.Cost driver: the other important variable which encourages firm to go intrernatio0n is cost. Raisein the cost of production in domestic country force an organization to enter into new market.Globalization is the main element which gives rise to cost related issue. Management in Ikea hasplanned to use the low pricing strategy which has allowed firm to attract more number ofcustomers (Deerskin, 2017). This strategy has also provided business entity an opportunity tofurther expand its business and enter into new market.1

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Critical Issues in Business Management Doc