1. Background information. In 1943, Ingvar Kamprad started the company IKEA. IKEA was designed to help provide families with low cost furniture after the war. In 1953, IKEA opened its first showroom. In 1964, IKEA opened its first warehouse store, in doing this it elimated distribution by allowing the customer to pick up their purchases at the warehouse. Ingvar Kamprad learned at an early age how to master running a profitable business. As a young boy he bulk purchased matches and sold them for a profit. As the owner of IKEA, this helped him in making wise decision on purchasing fabrics in bulk and building strong relationships with companies to make his furniture. In 1955, IKEA created the …show more content…
Discussion of several alternative solutions. One of the biggest alternatives to IKEA 's globalization problem would be to remain in European markets only. It goes back to the old saying, If its not broken why fix it. This is a market that IKEA has functioned in since it became a company and has had huge success. This would allow IKEA to keep its core values and company structure without any changes. It would not have to learn all the different styles of the different countries. IKEA remaining only in its european countries would also be good because then they would not have to learn all the different labor laws in those countries. IKEA would not face any of the employee problems they faced when entering into the USA. They would be able to keep a set pay, and set benefits package throughout their company without worrying someone was being treated unfair.
5. Recommendation. My recommendation for IKEA would be to remain globalized. In remaining globalized it should seperate its operations for different countries. They should use all standardized operating procedure for each region. These operating procedures should not be shared among the different regions. Its hard to have the same standards accross the board, when cost of living and such is different in each region. In order to be successful today, you must operate globally, and there are many ways to do that successfully. You just need to have a good business model and stick to