Managing Across Borders: IKEA's Ethical Dilemmas in Russia

Desklib provides past papers and solved assignments. This report analyzes IKEA's ethical challenges in Russia.

MANAGING ACROSS BORDERS (Draft Report)
The case of “IKEA in Russia – Ethical Dilemmas”
1 | P a g e

Executive Summary
The following report highlights and gives a brief idea of the case of one of the world's biggest
furniture giant. The case discusses the challenges faced by the management of the IKEA in
opening the first-ever store in Russia (Kouznetsov, et.al, 2014). In the following, report, a
description of the business plan of IKEA, opportunities for furniture giant, and the travails
faced by the company caused by the corrupt government in Russia have been done. The
report concludes with some useful recommendations based on the case analysis. A reflection
of individual contribution is also provided here.
Headings for Main Body
Overview of the Company and Case Study
Description of the Russian Furniture Market
IKEA’s Business Model for Russia
Business Ethical Standards of IKEA
Opportunities for IKEA in Russia
Challenges for IKEA in Russia
Corrupt Bureaucracy Hindering IKEA’s Expansion in Russia
Conclusion
Recommendations
Individual Contribution
As a learner, my major contribution was the researching part, whereby I read numerous
literature and analysis done by some of the renowned authors and business experts. It was
quite a learning experience for me as I developed a better understanding of corporate
governance. In addition to this, I gained knowledge of corporate ethics and standards that are
mandatory for the business entity while operating in the international market. I have read
many case study in the past, but this was a bit different as it clearly reflected that corruption
in the governance system of any country could be a major obstacle in the growth of any
business entity. I learned about other challenges too. Furthermore, while researching for this
particular case study, I got insight into the business plan of IKEA and also gained a
knowledge of how a business plan is affected by the governance and policies of a particular
country. The whole assessment helped me a lot in enhancing my business sense and
understanding.
2 | P a g e

References
 Kouznetsov, A., Dass, M., & Schmidt, P. (2014). Entry mode decisions: the effects of
corruption and weak law enforcement on foreign manufacturing SMEs in post-communist
Russia. Baltic Journal of Management, 9(3), 277-293.
 McFarlin, D., & Sweeney, P. D. (2014). International management: strategic
opportunities & cultural challenges. Routledge.
3 | P a g e