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Business Environment Assignment - IKEA

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Added on  2020-02-14

Business Environment Assignment - IKEA

   Added on 2020-02-14

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DEMONSTRATION OFAN UNDERSTANDINGNATURE OFORGANIZATION
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Table of ContentsINTRODUCTION...........................................................................................................................3Assessment of the business environment prevailing in Austria marketplace.........................3Background of the business ...................................................................................................4CONCLUSION .............................................................................................................................11REFERENCE ................................................................................................................................12
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INTRODUCTIONIn order to understand the environment every organization includes various system ofactivities and behaviours. In addition to this, it helps to enable human and their machines toaccomplish goals and objectives of the enterprise (Hooper-Greenhill, 2013). It also jointfunctions of human characteristics and nature of the task environment which consist inenvironment of the firm. Present report is based on IKEA which operate their functions Austriamarketplace. Now they want to expand their market in Austria workplace. In respect to this, theycan use strategy to enter in new place of cited country. They offer services through online andoffline stores through customers can access according to their convenience (Wang, Solloway andBusemeyer, 2014). In this report covers, report should be focused around the cited firm. Inaddition to this, report covers confirmation of the country and organization's feature which createmajor impact on the businesses. Assessment of the business environment prevailing in Austria marketplaceIKEA group is the largest global retailer of furniture. They offer their products in onlineand offline both stores. In addtion to this, Austria is the most popular market which conductactivities for farmers, flea and potters. They offer most preferable brand of furniture in the world.Austria is developed country which has stable and strong performing economy (Kirst-Ashmanand Hull Jr, 2014). In addition to this, their economic resilience and sustained growth provide anattractive, safe and low-risk environment to IKEA. Thus, organization can perform theirfunctions in a systematic manner. The business can expand their operations through providingtheir products at different places. In respect to this, they can make new products in term ofexpanding products in movable furniture (Wynn, 2013). With the help of this, organization canproduce goods which can be carry from one place to another without facing any difficulties. Inthis criteria they have enough capital to attract potential customers at global place (Bickmore,2013). Along with this, Austria has a strong political and financial system which has low publicdebt and low unemployment. Beside this, Austrian market support to cited firm because in thenation there high-skilled workers available and workforce is diverse. Therefore, Austrian
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economy is supported by long standing and healthy political system of the country (Taylor,McNicholas and Reed, 2014). Further, government of Austria provides a framework whichensure trading of chosen business is fair for consumers. The framework is administrated andenforce by the Austrian Competition and Consumer Commission (ACCC). Austrian Consumer Law (ACL) also made by the government which provide regulationson unfair contract terms, consumer rights guarantees and penalties. In this term, governmentprotect to the customers from the operations of IKEA functions. In addition to this, Productliability regulation regulate by the national statutory framework of Austria marketplace(Tomlinson and Fai, 2013). In this chosen enterprise follows safety and information standardsrelated to products. These standards designed to ensure harmful products are not marketed in theAustrian marketplace. Background of the business IKEA is business which sale their five star furniture in the whole world. The companystarted their business to sell furniture in 1943. Their first Mobel-IKEA store is established inAlmhult, Smaland in 1958 which is known as Mobel means “furniture” in Swedish. OutsideSweden the store is opened in Norway (1963) and Denmark (1969). From the starting time IKEAtaken different path through they decide to sell products throughout the world. This is becausepeople have different perception, needs and tastes (Hooper-Greenhill, 2013). Thus, those peoplewho want to improve their home and creating better everyday life, IKEA is help to offer widerange of the products and services in the world. In this context, they combine good design,function and home furnishing in IKEA stores. The business started selling their products at verylow prices. IKEA is the major international business in the whole world which provide furniture,home furnishing and housewares. In respect to this, company design their products by their ownway (Taylor, McNicholas and Reed, 2014). Their main stores around the world established more
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