Pestle Analysis on Ikea in Global Business Environment

Global business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment refers to an environment in various countries in context
with different factors which can affect various decisions that are used in context with resources
as well as capabilities. It involve many transactions that are done among all national borders in
order to fulfil objectives of individuals, organisation as well as companies(Zámborský, 2020).
The below report includes pestle analysis on the basis of Ikea. It is a Swedish multinational
corporation which design as well as sells furniture, kitchen appliances and home accessories. The
company was founded in 1943 by Ingvar Kamprad.
MAIN BODY
Pestle analysis on Ikea
There are six factors involved in pestle analysis and in context with Ikea it is been
explained as below:- Political factors:- Ikea is affected by two main political factors that are in relation with
free trade and occurrence of Brexit (Pestle analysis of Ikea, 2018). In context with free
trade, it allowed the brand to import all foreign products to sell in their stores also at
reduced prices which creates effective profit margin also. In relation with Brexit, it
impacted company in a major way especially in terms of trade regulations. Economic factors:- Ikea was affected in relation with International laws. Though many
people lost their jobs but they still want furniture and kitchen appliances which are
necessary items so company set their product prices in a conservative manner. Ikea was
also influenced by dollars. (Khoshnaw and Hameed, 2020). Social factors:- There are many laws that every business had to follow and no social
values should be avoided. So, Ikea followed this rule and removed unfortunate things
from all magazines. They also removed women from a Saudi Arabian catalogue. Technological factors:- The most important and famous technological factor is in terms
of their paper catalogues. People were also able to check latest news about Ikea through
online. As it useful for the customers of Ikea that they can place order online which can't
be done through paper catalogues so they enabled the online website. Legal factors:- It was been analysed that Ikea followed many laws and not only in one
country but all countries where they were been operating. They faced negativity because
of poor quality products that was impacting families and other societies. So, by following