Global Business Dynamics: Ikea Russia Case Study

Global Business Dynamics: Ikea Russia Case Study
Global Business Dynamics: Ikea Russia Case Study
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Global Business Dynamics: Ikea Russia Case Study
Table of Contents
Introduction..............................................................................................................................3
Summary of the Case Study....................................................................................................3
Case Questions..........................................................................................................................3
External Factors for a Foreign Business Venture.............................................................3
Impact of Strong Political Machinery on Business...........................................................4
Growth Strategies for Ikea..................................................................................................5
Conclusion.................................................................................................................................6
Reference...................................................................................................................................7

Global Business Dynamics: Ikea Russia Case Study
Introduction
Ikea too has seen certain problems in its Russia operations, mostly dealing with the issue of
conforming to the ethical standards of the company. While Ikea is known for its exceptional
tough policies on corruption, the employees in Russia have constantly failed to take note of it.
This case study deals with understanding one such case, and how Ikea can combat it and
develop a better international business strategy for itself (Evans 2015)
Summary of the Case Study
This case study focuses on Ikea combating corruption in its Russian facilities. The case opens
up by providing information about how one of the Ikea associates in Russia was caught
taking bribes and was sentenced for six years in this case. While the company had given full
support to the investigating authorities, it has come to an understanding that something is
genuinely wrong with its conduct since it is the second case of bribery in Russia
(Dashkovysky 2016). Ikea management is now forced to think if their policies are not strict
enough, or their approach towards business in Russia is not right. Ikea is constantly battling
this issue of how it can ensure that its employee follows the best ethical standards set by the
company and contribute to its growth.
However, as the case progresses, it is understood that it is not only Ikea but the Russian
bureaucracy too which is at fault. The corruption has steeped there so much so that Ikea faced
so much problem in shifting into its new facility base. Further, the high start-up cost has also
contributed towards the apparent difficulties faced by Ikea in creating profits for itself
(Brooke 2019).
Case Questions
External Factors for a Foreign Business Venture
When a company decided to enter a foreign market, it is essential to understand the market in
every possible way. Right from understanding the political situation to the general working of