IKEA in Russia - Ethical Dilemmas
| Case Code: BECG128 Case Length: 12 Pages Period: 2000-2012 Pub Date: 2013 Teaching Note: Available |
Price: Rs.400 Organization: IKEA Industry: Specialty Retail Countries: Russia Themes: Business Ethics, Corporate Governance |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case "IKEA in Russia - Ethical Dilemmas" describes the efforts and tribulations of international furniture retail giant, IKEA while setting up and doing business in the emerging market of Russia. The case starts out with the efforts made by Lennart Dahlgren to set up IKEA's first store in Russia. It details the challenges faced by him in this process. Later, the case talks about the way IKEA went about positioning its stores, in addition to the new business model it came up with considering the unique circumstances of Russia.
Issues
The case is structured to achieve the following teaching objectives:
- To analyze the economic conditions of an emerging market before devising a market entry strategy
- To recognize the need for a strong corporate policy to deal with a tough Business Ethics
- To help develop strategies to grow and prosper in an emerging market
- To understand the difficulty in ensuring adherence to the corporate culture in diverse geographical markets
Contents
-
Introduction
Background Note
Foray into Russia
Opening of the Stores
A Growth Story Marred by Problems
A Stop to Everything?
The Road Ahead
Exhibits
Keywords
IKEA, Russia, Specialty Retail, Emerging Markets, Ethics, Corporate Governance, Corruption, Market Entry Strategy, Sustainability, Business Model, Corporate Policy, Multinational, Bureaucracy, Red tape, Mega Mall, BRIC, Bribery , Corporate Culture, Government , Swedwood
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