Business Environmental Analysis Report: HND Business, Unit 1

This report provides a comprehensive analysis of the business environment, encompassing various types of organizations including private, public, and voluntary sectors. It explores different legal structures such as sole proprietorships, partnerships, and corporations, providing insights into their characteristics and implications. The report includes detailed case studies of Petronas, Dahmakan, and Mercy Malaysia, examining their vision, mission, services, and organizational structures. Furthermore, it delves into the positive and negative impacts of the macro environment on IKEA, along with an analysis of market structures influencing pricing and output decisions. The report also features SWOT and PESTLE analyses, and explores internal and external factors affecting IKEA, identifying its strengths and weaknesses, and how macro and micro factors impact business objectives and decision-making. The interrelationships between human resource management and marketing are also discussed. The document aims to provide a detailed overview of business environmental analysis, offering practical applications and insights for business students.

TITLE:
Business Environmental Analysis
PREPARED BY:
Chew Cheow Ying
STUDENT ID:
COURSE:
Higher National Diploma in Business
UNIT 1:
Business and The Business Environment
LECTURER:
Ms Suga Sri R.Lackhmanan

TABLE OF CONTENT
TASK TITLE PAGE
TASK 1 1.0 Types of organisations 3-5
1.1 Organization 6-8
1.2 Mercy Malaysia Organization Chart 9-11
1.3 The advantages and disadvantages of interrelationships 12
1.4 The difference between the three companies 13
TASK 2 2.0 Positive and negative impacts the macro environment has upon IKEA 14
2.1 Market structures influence pricing and output decision in IKEA. 15
2.2 SWOT Analysis 16-17
2.3 PESTLE 18-19
2.4 Internal and external analysis on IKEA in order to identify the
strengths and weaknesses of IKEA
20-21
2.6 Macro and micro factors affect the business objectives and decision-
making
22
References 23-25

TASK 1
1.0 Types of organisations
Private Sector
The private sector is the sector of the economy owned, managed and controlled by profit-
seeking individuals and organizations. Private companies are usually not owned or controlled
by the state. Sometimes, however, the private sector can work with the government in public-
private partnerships to provide services or invest in businesses in the community. A private
sector company may exist through privatization of a public organization or through a new
private enterprise. Private enterprises stabilize prices by creating fair market conditions.
The private sector plays a vital role in both urban and economic development. The private
sector not only contributes to national income but is also a major source of employment.
Understanding the private sector can help guide the private company and ultimately get the
most out of the community. The role of the private sector is an integral part of economic
development.
An important stakeholder in the economy: The private sector is an important participant in
the economy because of its input to national income. In particular, it provides important
goods and services, contributes tax revenues and ensures the efficient flow of capital.
Job creation: The private sector plays a key role in job creation within its communities. A
significant number of enterprises are controlled by the private sector, indicating that these
enterprises provide more jobs than the public sector.
Public Sector
The public sector is the part of the economy controlled by national, state, provincial and local
governments. In the United States, the public sector includes universal, critical services such
as defense, homeland security, police protection, fire protection, urban planning, corrections,
taxation, and various social programs.
The public sector overlaps with the private sector in the production or provision of certain
goods and services. The degree of overlap varies by country, state, province and city. This

overlap is most often seen in waste management, water management, health and safety
services and shelters for the homeless and abused.
Voluntary Sector
The voluntary sector is usually made up of organizations whose purpose is to benefit and
enrich society, and whose motivation is often not profit, with little or no government
intervention. Unlike the private sector, which emphasizes profit generation and return to its
owners, the money raised or earned by an organization in the voluntary sector is often
invested back into the community or the organization itself.
The purpose is to create social wealth, not material wealth. Although the voluntary sector is
separate from the public sector, many organizations are often closely linked with all levels of
government to support their program and service delivery.
There are many different types of organizations in the voluntary sector. Like most charities,
some have both paid and volunteer staff. Other organizations have a much looser definition,
such as community organizations, which can be made up entirely of volunteers. The
examples of the voluntary sector are World Vision, American Red Cross and more.
Legal Structure
Sole Proprietors
Private sector businesses are organized in different ways to provide tax incentives to owners,
minimize liability, and improve operational efficiency. The most common organizational
structures are sole proprietorships, partnerships, limited liability companies, and corporations.
In the United States, proprietorships are mostly small businesses and are the easiest way to
set up a company. These companies are owned by one person, and their financial structure
essentially makes the owners and the company itself legally the same person.
Partnership
A partnership is similar to a sole proprietorship, but with multiple proprietorships, with
responsibilities and profits distributed among the partners according to an agreement between
them. These terms are bad for big companies, which can often be sued and assume large

amounts of loans and debt as a normal part of day-to-day business. For these reasons, large
companies often decide to organize differently to protect their owners.
Public limited Company
Much larger, this is another type of joint stock company, just like a private limited company,
where the company is a registered business, the shareholders are voted by the board of
directors on behalf of the shareholders and there is an A.G.M. on certain key issues about the
company.
The main difference between a limited company and a private limited company is that a
limited company can sell its shares to the public on the stock exchange and, therefore, can
raise more capital than a private limited company.
If a private limited company wishes to become a limited company, it must amend its
Memorandum and Articles of Association and resubmit them to the Registrar of
Companies.If the company is deemed to have acted legally and in the best interest of
shareholders, a new certificate of incorporation and a trading certificate will be issued, which
will allow the company to sell its shares on the stock exchange. The stock price will then
fluctuate depending on the investor's view of the PLC.
Generally, the owners (shareholders) of a corporation want the corporation to make as much
profit as possible, so that shareholders receive a very handsome dividend per share. However,
boards and management often want to devote part of PLC's resources to growth and
diversification (such as the launch of new products), which will conflict with shareholders'
desire to maximize profits. This is called a divorce of ownership and control.PLC must
publish its annual accounts, or disclose them, and is therefore highly susceptible to investors'
and bankers' perceptions of its progress and success. As a result, an LLC is also at risk of
being taken over by an outside agency if they manage to accumulate more than 50% of the
LLC's shares.

1.1 Organization
Figure 1.0 about the logo of Petronas
Petronas is the abbreviation of Petroliam National Berhad. Petronas Malaysia not only
focuses on oil and gas, but also provides education. Petronas is a registered public
organization with independent legal entity. Petronas Malaysia was incorporated on August
17, 1974 and owned and controlled by the Malaysia government.
Vision
The vision of Petronas Malaysia is to become the leading multinational oil and gas company
of choice. Petronas hope to become a world-renowned organization and the first choice for all
other oil companies.
Mission
Petronas primary responsibility is to develop and increase the value of this country's
resources.
Services

Petronas Malaysia seeks energy investment opportunities in the global hydrocarbon and
renewable energy fields, and maximizes its value through its integrated business model. This
product portfolio includes conventional and unconventional resources as well as various
fuels, lubricants and petrochemical products. The record of successful product delivery
further strengthens this point. Customers are the core of all the organization's work, and the
company's business is also based on meeting customer needs.
Figure 2.0 about the logo of dahmakan
Background
Worked with founders Jonathan Weins, Christian Eldemann and Jessica Li for two years to
build the dahmakan brand and help realize its vision of becoming the first full-size take-out
brand in southeast Asia. In the process of disrupting the food industry, Dahmakan grew in
three years from a team of three in Kuala Lumpur to Y combinator, which operates in two
countries and serves thousands of meals a day cooked by chefs to people at sea.
In designing brand touchpoints and communication events, dahmakan wants to engage
customers in the brand, understand its value proposition and resonate with the message. A
large part of the design strategy is characterized by the use of colors that represent vegetarian,
fish, meat, and staple foods on different menus, Asian -- food photography and images eaten
together by different genders, ages and cultures reflect the multicultural environment of
Kuala Lumpur, celebrating dahmakan's dining and customer diversity.
Services
Dahmakan is an online meal booking application designed for lunch and dinner. The
company's online meal ordering app allows users to order fresh, healthy and ready-to-eat
lunches and dinners from the daily menu and deliver them to their homes or offices, allowing
customers to eat a balanced meal at home.
Mission

Our mission is to become the most popular platform for job hunting in Asia; help people find
jobs with any employer in the market.
Figure 3.0 about the logo of Mercy Malaysia
Background
It all began in 1999, when a fierce war broke out in Kosovo, killing thousands of people and
spreading misery. Jemilah Mahmood, a Malaysian obstetrician who volunteered to provide
medical care, was deeply moved by the plight of countless innocent civilians, especially
women and children. Over the past two decades, the organization has provided humanitarian
assistance and programmes in 32 countries, both in crisis and non-crisis situations. Mercy
Malaysia has also evolved into a full-fledged humanitarian organization providing a full
range of humanitarian services, from emergency response to recovery and rehabilitation,
mitigation and prevention, and disaster preparedness. All staff and volunteers carry out their
duties in accordance with the mission and core values of mercy corps Malaysia, whether at
headquarters, country offices or wherever they represent the organization.
Vision
To be outstanding in delivery of medical and humanitarian aid to all.
Mission
Mercy Malaysia is an international non-profit organization that focuses on providing medical
relief, sustainable health-related development, and risk-reducing activities for vulnerable
communities in crisis and non-crisis situations.

1.2 Mercy Malaysia Organization Chart
BOARD OF TRUSTEE
(CHAIRPERSON)
EXECUTIVE COUNCIL
(CHAIRPERSON)
DEPUTY EXECUTIVE
DIRECTORPA, PRESIDENT&ED OFFICE
COMPLIANCE OFFICER
DIRECTOR PROGRAM
DEV’T AND OPERATION
GENERAL MANAGER,
COMMUNICATIONS&FUNDRI
SING
GENERAL MANAGER,
PROGRAM OPERATIONS
DIRECTOR, STRATERGIC PLANNING,
ORG DEV’T AND STAKEHOLDER
ENGMT
GENERAL MANAGER,
SUPPORT SERVICES
PROGRAM OPERATIONS
LOG.SAFE. &SECU
VOLUNTEER MGMT
STRATERGIC
PLANNING&PROJECT
LEAD
HUMANITARIAN DEV
COMM.&STKHDR.EGMT
FUNDRASING&EVENTS
HR&ADMIN SERVICES
FINANCE
ISLAMIC SOCIAL
FINANCING(ISF)
QUALITY
ACCOUNTBILITY

Interrelationships between Human resource management and Marketing
Human resources are no longer a more behind-the-scenes force in the workplace, but focus
on recruitment, participation or development. Human Resources Department and Marketing
Department are working together to build the company's brand. The marketing department
conveys the company brand to consumers, while the cooperation between human resources
and marketing department conveys the company brand to employees. By using social and
technology-based tools, the company is creating a general brand message, which is suitable
for employees, applicants and consumers.
Through joint efforts, HR can find the best people to promote and build brands, while
marketing can create brand information and convey it to employees. The organization is
learning a brand not only for consumers, but all employees need to live this brand.
Enterprises have seen great achievements in this cooperation.
For marketing, the human resources department mainly serves the employees of the
company. Because of its contact with its employees, the department can share brand
information created in marketing with its employees through training, assessment and
employee orientation. In Petronas, the organization selects the best and brightest employees
by looking for talent among local and overseas graduates. Petronas trains and moulds its own
employees through technical training and the innovative program provided in University
Technology Petronas. Through cooperation with human resources, brand information can be
disseminated to the whole company through internal communication. Employees can become
brand ambassadors, thus strengthening the marketing department's mission of communicating
brand information to consumers.
For human resources, marketing can help promote values and mission if the company is
connected with consumers because of the marketing team. Through this promotion,
marketing can help attract potential employees. Marketing can also help human resources
departments and other employees adapt to communication methods and styles, because
marketing employees have experience in communicating with consumers.

1.3 The advantages and disadvantages of interrelationships
Advantages
Specialization
The most obvious advantage of a functional organization is that it ensures a reliable level of
departmental competence by grouping employees professionally. This is especially true for
large organizations with multiple functional levels within a department -- for example, a
technical team dedicated to following up on technical issues that the main telephone technical
support team has not addressed.
Members of this team require a bachelor's degree in computer science, manager
recommendation and at least a few years of field experience. This ensures that follow-up
team support issues are handled by fully qualified personnel, which increases customer
satisfaction and retention.
Operation speed
A related benefit of this organizational specialization is speed of operation. In general, a
skilled technician handles support issues more quickly than someone with less experience. It
may also train new employees more quickly.
Disadvantages
Lack of coordination
In a perfectly functional organization, the tasks of each group do not require input from other
functional groups, but this is often not the case. As communication becomes more dominant
in the organization, it can help that isolated teams may underperform or even fail because
they don't have an institutionally recognized way to communicate needs and issues to other
functional teams.
In some cases, managers from other functional groups may not respond in a helpful or timely
manner because "it's not our problem." The most effective time for cooperation may be over
before the need for it is established.
Segregation
A division of employees who specialize in a particular area of work means teams become
silos. Employees from different teams don't have the opportunity to meet and share ideas,
which is detrimental to the long-term growth of the business.

1.4 The difference between the three companies
The organization group of people working together, and the private sector is the organization
of special profitmaking to develop his or her own company, which is provided by investors,
partners and franchise, Dahmakan as an example. The public sector is owned by the
government, so it is a public company, and the last voluntary sector is owned by the
government and individual charities, in the case of Mercy Malaysia. The main profit-oriented
interest is the private sector. When the public sector meets the needs of individuals rather
than for-profit and non-profit purposes, the private sector will get the maximum benefit.
Any organization must have a goal, and they set goals for that goal or for the organization's
goals, so there is no reason to base them on meaning. Every organization has goals and
objectives.

2.0 Positive and negative impacts the macro environment has upon IKEA
The macro environment is a condition that exists in the economy as a whole, not in a
particular sector or region. Generally, the macro environment includes trends in gross
domestic product, inflation, employment, spending, and monetary and fiscal policy. The
macro environment is closely related to the overall business cycle, as opposed to the
performance of individual business sectors.
The macro environment includes those uncontrollable external factors that affect the
organization's decisions, performance and strategy. These external factors include economic,
legal, cultural and social factors, technological change and natural forces. Changes in
consumer tastes, interest rates and government policies are all examples of macro-
environmental factors. IKEA is also affected by these external environmental forces.
Positive Impacts
The positive impact of the macro environment on IKEA's business may be related to positive
changes in tax rates, laws and regulations applicable to the company. Social factors such as
customer satisfaction can bring positive influence to the company.
Negative Impacts
The negative impact of the macro environment on the corporate business may be the rapid
changes in technological progress, economic factors such as changes in tax rates, social
factors such as changes in trends, and changes in government policies included in the macro
environmental political factors.

2.1 Market structures influence pricing and output decision in IKEA.
IKEA is considered as monopoly competition because there are so many furniture
stores that it has to compete with them. Monopolistic competition is a kind of imperfect
competition because the number of monopolistic enterprises is large, but the scale of perfect
competition is not large. Although there are many companies in the industry, there is only
one company in a particular place. For example, Petaling Jaya may have many furniture
stores, but only Ikea is on the street. In monopolistic competition, each enterprise has a
pressure between its competitors, but still has some market power over the price of its
products. Although all furniture stores sell furniture, there are product differences between
IKEA and its competitors. Product differentiation allows a company to raise the price of its
products without losing all of its customers because the products are different from
competitors in terms of quality, brand, type and so on. Ikea differentiates its products by
selling eco-friendly, self-assembled furniture products that more people can afford. In
monopolistic competition, there are few barriers for new enterprises to enter and exit. In
addition, IKEA use catalogs as its main advertising medium.
IKEA is one of the world's largest furniture retailers. Its goods are considered normal
goods because their elastic price elasticity and income elasticity are positive. In monopolistic
competition, IKEA's products are different because IKEA is known for its eco-friendly
products and ready-made furniture that can't be found in other furniture stores. Therefore,
IKEA's demand curve is downward sloping due to product differentiation. However, there are
a number of determinants that influence whether the demand curve moves to the left or the
right. Ikea can offer their goods at such a low price because its goods are produced at such a
low cost. The short-term average cost curve will determine the long-term average cost curve,
so IKEA can find the lowest production cost. Besides, IKEA maybe profitable in the short
term, but in the long run, the profit will be zero. This is because profit will attract new
enterprises to enter. When more and more enterprises enter, the profit will spread to the
normal zero profit. Moreover, IKEA has a long history of economies of scale.

2.2 SWOT Analysis
SWOT(Strengths, weaknesses, Opportunities and Threats) analysis is a framework
used to assess a company's competitive position and develop a strategic plan. SWOT analysis
evaluates internal and external factors, as well as current and future potential. The purpose of
SWOT analysis is to promote a realistic, fact-based, data-driven look at an organization's
strengths and weaknesses, its plans, or an industry. Organizations need to keep their analysis
accurate by avoiding preconceived notions or shades of grey rather than focusing on the real
world. Companies should use it as a guide, not a prescription.
Analyze the current situation of IKEA by using different marketing tools. On this
basis, we will use SWOT analysis to analyze IKEA. External and internal analysis is based
on the analysis of factors that can influence the enterprise in order to position itself to take
advantage of opportunities and manage threats identified through external environment
analysis. In particular, it also helps to identify weaknesses and strengths that may currently
affect organizational capabilities.
Strength(Internal factors)
A strong global brand that appeals to key consumer groups. A clear vision -- "creating a
better daily life for many" -- is a strong idea. IKEA offers a range of well-designed products
at a price everyone can afford. Good product image. IKEA has the ideal balance between
function, quality, design and price
Weaknesses (Internal factors)
IKEA is a large global business, this makes quality control difficult to control and means
weak links in the supply chain. The need for low-cost products. Despite the low prices,
consumers still need to feel they are getting value for money. The cultural differences in
many countries such as diversified markets in Japan, China and the United States.
Opportunities (External factors)
The demand for low-cost goods has increased. Due to the current trend of financial
conditions in the global economy, consumers are choosing cheaper goods rather than
shopping in expensive stores. Rapidly rising Asian countries with affluent middle-class
populations represent an opportunity to enter and market the concept of affordable modern
furniture suited to a particular lifestyle. Opportunities to improve customer service through e-
commerce as a means to increase business capabilities.

Threats (External factors)
Social trends - slowing the number of first-time home buyers entering the property market.
Market forces - More competitors entering the low price home furnishing and furniture
market.
Imitation concept - In an increasingly competitive retail market, mainstream retailers are
starting to emulate this model
Economic factors - the global financial crisis has reduced disposable income and consumer
spending.

2.3 PESTLE
Political
Since IKEA stores are located in 41 countries, the company must comply with rules in each
country. Some countries may have similar legislation or political influence. But this is not
always the case. One thing is certain: all countries benefit from political stability. Without it,
economic stability is impossible. That said, IKEA could lose profits in one place rather than
another, depending on who is in charge and what, if anything, they represent. For example, an
unfriendly government can make importing and exporting foreign goods a nuisance. IKEA
relies on these relationships to maintain stability, otherwise their revenues would be in
jeopardy. Good relationships, on the other hand, are IKEA's blessing. India and China are
more open to international brands. Seeing this positive shift, IKEA is considering expanding
into Asia. Now a genuine bridge is opening and IKEA is seizing the opportunity.
Economic
Just as IKEA is influenced by international law, they are also vulnerable to the global
economy. Even now, some well-known brands are still feeling the effects of the 2007
recession. Thousands of people lost their jobs. In response, we see consumers making
conscious buying decisions. Purchases are based on demand, not luxury. While people may
need furniture, upgrading a mattress, dresser or sofa is far from consideration. Knowing that
money is tight, Ikea prices its products conservatively. Now, when you need stylish and
cheap furniture, you think of IKEA. You can save money and find everything for your home.
This has been happening for decades. On the business side, IKEA has been affected by both
the strength and weakness of the DOLLAR. The stronger the dollar, the more American
brands lose money. Fortunately, the economy has strengthened (and is still recovering). More
jobs are being created and sales are up again.
Social
IKEA makes a great contribution to the society, they provide opportunities for people,
employees enjoy different benefits, such as insurance and pension. In addition, the company
promises to provide more high-quality furniture, sticking to their original concept - stylish
furniture, at low prices.

Technological
IKEA still offers paper catalogues. They are no longer the only way to present products. With
the Internet within reach, people are likely to check out products online. By now, every
business should have a working website. Ikea is no exception. Everyone can find current
product, sales and home decor inspiration on the IKEA website. Not sure where the nearest
shop is? The IKEA website will let you know. They also allow orders to be placed online. A
paper catalogue will not do this. Online, IKEA aims to provide customers with a realistic
experience. If you can't go to their store, you can still have a similar experience online. You
can search by product or room. If you're searching for products under $10, they have a
category. All businesses benefit from increased customer satisfaction. It leads to new
reviews, word-of-mouth recommendations and brand loyalty. Given IKEA's efforts to
understand its customers, it's not surprising that their digital channels reflect similar efforts.
Legal
All big businesses are vulnerable to legal threats. Ikea must comply with a number of laws
and regulations in the country where it operates. Because they are physical stores, it is
important to keep up with the latest labour laws. That’s not all. IKEA is in the news because
of the poor quality of its products. Items fell and overturned, causing casualties. This
destruction affects families and communities. When such a problem occurs, IKEA needs to
make sure their products are safe. Otherwise, litigation occurs. While they may recover
financially, their reputations may not.
Environmental
For environmental factors such as air, noise and water, the company will conduct inspections
to ensure that remedial measures can be taken within the prescribed time. With the
continuous operation of enterprises, environmental inspection includes legal documents and
environmental authorities.

2.4 Internal and external analysis on IKEA in order to identify the strengths and
weaknesses of IKEA
Internal analysis
Internal analysis is to determine the important strategic strengths and weaknesses, and the
company should finally formulate strategies based on this. Ideally, this goal can be achieved,
firstly, by determining key internal factors, such as distribution channels, cash flow, location,
technology and organizational structure, and secondly, by evaluating these factors. The
analysis of internal factors is neither linear nor simple. These steps often overlap, and
managers of different positions and levels carry out internal analysis in different ways.
Therefore, it is very important for enterprises to evaluate these factors effectively.
Everything that happens within the company or within the company's control belongs to the
category of internal factors. Strengths and weaknesses are internal factors because they show
the company's ability to handle internal affairs and the focus that the company should pay
attention to. These factors usually refer to matters related to various departments of an
organization, such as finance, marketing or production. The strengths Ikea is the availability
of its resources, and the company can effectively use the organizational resources for
successful operation. Another factor is the company's efficient management, committed to
achieving the company's goals. At the same time, the internal analysis also showed some
weaknesses of the company, such as the company did not follow the incentive strategy to
motivate staff, production costs were not controlled, etc.
External Analysis
Factors that are described as uncontrollable and unpredictable by enterprises will often have a
serious impact on enterprises, and will affect the strategic direction they pursue, and will
shape the organizational structure and existing values within the organization. These factors
are usually related to the external environment of the enterprise and can therefore be divided
into two categories. The first set of factors includes the opportunities involved in the need to
develop a strategy. Second, there are external threats that complicate the strategy of creating a
company. IKEA's external analysis describes the core strengths as social factors that show
customer satisfaction with IKEA, customer satisfaction with IKEA is identified as its core
strengths, and the identified weaknesses are the rapid changes in technology that companies
have to cope with and keep products up to date.

2.5 Macro and micro factors affect the business objectives and decision-making
Business organizations work in two environments, the first is micro-environment and the
second is macro-environment. A business owner can't afford to look only at the
microeconomic influences of the local economy, prevailing wages in the area and more.
Macroeconomic factors, such as inflation, government supervision and industry trends, are
also worth considering when owners make business decisions.
Micro
Hiring Permanent Employees
If the business is growing and the sales forecast looks good, the company may be tempted to
add more employees. After all, the microeconomic indicators are positive. However, if the
economy as a whole seems to indicate that employers are cutting back on spending, it may
not be wise to promise fixed salaries and benefits. The organization could decide to hire
temporary workers until both microeconomic and macroeconomic trends are positive.
Whether in Ikea or other organization employee are the human resources without which
company cannot work. So, workers have a direct impact on the decision making of the
company.
Suppliers
This is one of the most critical factors in the company's price policy. If the supplier's products
increase greatly, the company will react in the same way. One way to avoid this situation is to
keep good relations with suppliers. A good relationship will guarantee fair trade, and end
users will benefit from it. For example, IKEA has a unique strategy for suppliers. This
Swedish retailer is cooperating with suppliers all over the world. The organization chooses
the best quality at the right price. IKEA may not be the best example of building relationships
with suppliers. The reason is that IKEA often decides to change suppliers. In this way,
Swedes ensure that they will provide customers with the best quality products at the best
price.
Macro
Social Culture factors
This part of the analysis is probably the most difficult to track or predict. Here, marketers
should be able to anticipate consumers' buying behavior, tastes and changing priorities. In the

Internet age, cultural values are easy to change. Information is everywhere and consumers are
being affected by 4G speed.
Differences in people's thoughts, beliefs and attitudes can strongly influence an enterprise's
international marketing when choosing the appropriate strategy or adopting a marketing mix,
which means that cultural knowledge is limited, especially when formulating appropriate
policies for another country's target market. Cultural differences have a great impact on work
values. For example, in the case of IKEA, the furniture sold in the UK is relatively different
from the furniture expected in China. Therefore, managers must understand that a product
may or may not succeed, depending on how marketing decisions are closely related to the
national culture.

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