Case Study: IKEA offers a wide range of well –designed ,functional furnishing pr

Question

Case Study: IKEA offers a wide range of well –designed ,functional furnishing products which are sold all over the world . but while many would welcome its location in their communities , others may not. Some could complain that is presence has too many negative effects on a community ,ranging from traffic congestion to unfair competition. Suppose IKEA has announced plans to seek approval form the planning of a small town to build a new store . develop a list of the main arguments, pros and cons , that could be presented at a public hearing on the matter by members of each of these groups : Owners of small business located nearby . Town residents , and residents of nearby towns . How might an IKEA representative respond to the negative criticism that might be brought up ,

and what other benefits could the representative offers the planning board to bolster IKEA’s case for gaining the board’s approval ? What are the suggestions where the case study ideas could be implemented in UAE and GCC

Explanation / Answer

List of main arguments by groups

1.       Entry of IKEA may attract customer, as they are large organizations selling products all over the world hence they may work in low margin of benefit causing serious harm to local and small business.

2.       Since IKEA is new company in the country hence the same will take the revenue out of the country causing serious economic impact.

3.       Earning potential of residents will be impacted severely as they will not be able to compete with the company who is selling its product all over the world.

List of IKEA response

1.       Presence of IKEA will ensure that goods and services which they sell are available to local public at the lowest possible price hence they will help mass.

2.       They are selling products in international markets hence the quality design will be of international standards which the residents of the country will be able to enjoy.

3.       Equal opportunity should be provided to all, hence as per foreign direct investment rules in the country the same could be listed here

4.       Being a international brand, their entry will create high number of job to local public causing social development.

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