Management

IKEA in China

COLLAPSE

Hi Everyone,
Business adjustments are the best ways to make any company worldwide to be successful. This
is because many companies worldwide offering different services are faced with all kinds of challenges,
especially at the international levels. This is not a different statement when the IKEA company is put in
the bigger picture. The company, which is Sweden based, offers all kinds of furniture to its customers
globally. Being the best furniture company, it has always considered all sorts of adjustments in the
countries it has its branches to enhance its success.
The country that the IKEA company made a lot of adjustments while in business in China, whereby
there was a drop in prices of most of the furniture compared to other countries that IKEA was based.
Based on the macro environments, PESTLE, the business adjustments align with the company (Wu,
2020). The main elements that might create China's opportunities that might be different in America are
technology and culture. These are the main issues that the IKEA company would adjust to make sure that
there is the company's success. The microenvironment in line with the macro is market and competition
whereby once the technology is used, there is traffic caused since the company sells itself to the public.
When the business adjustments are further mentioned, some issues bring about the opportunities for
success in the company and especially in the USA (Al Shuwaler et al., 2020). The main problem that may
bring in that opportunity is a technology whereby having the right platforms to advertise and market its
products. There is the likelihood of being a successful company. The other use of technology to create
America opportunities is new ways of making better furniture for the customers.
In conclusion, the likelihood of a business to fail and especially in new environments is high. This is
because there are unique cultures involved in line with the new settings; hence, companies are
recommended to have business adjustments to make sure that their companies are fit in the new
environments hence success in the business.

References
Al Shuwaler, A., Quttainah, M. A., Kee, D. M. H., Kei, C. M., Qi, E. J., Wen, E. C., … & Pandey, R. (2020).
IKEA's Corporate Social Responsibility. International Journal of Tourism and hospitality in the Asia
Pacific, 3(2), 70-77.

Wu, Y. (2020, February). The Marketing Strategies of IKEA in China Using Tools of PESTEL, Five Forces
Model, and SWOT Analysis. International Academic Conference on Frontiers in Social Sciences and
Management Innovation (IAFSM 2019) (pp. 348-355). Atlantis Press