CASE 12 IKEA business entry to US anD International Staffing Executive Summary The following is an analysis of the IKEA case study found in the Strategic Management Text book. This analyses thestrategies used by IKEA to gain competitive advantage in markets outside its original area. The report begins by providing abackground into IKEA. It studies International Business Level Strategy and the three international corporate level strategies. The case study goes into informing its target market and pricing strategy, which is already discussed. This case study furthersays how different people in different parts of the world thinks about IKEA, how elegant their designs are and how affordablefor them to purchase IKEA products. Some of IKEA's main markets are in three of the fastest growing markets such asRussia, US and China. IKEA store bring out products such as furniture to small product like a scented candle. IKEA has over 1300 suppliers in about 53 countries. They further have 12 full time in- house designers with 80 free lancers and otherproduction workers to identify the correct raw materials and produce products efficiently and cost effectively. Primarily, IKEAproduced standardized products however, this international strategy did not work for one of its vital markets that is, US. Therefore, they had to emphasize on taking corrective actions. The report also analyses the entry methods used by IKEAand its sustainability.IKEA Case Study BUSSINESS ENTRY TO USA The company started off with wholly owned subsidiaries but with their globally standardized equipment. However as theentry proved unsuccessful as the IEA failed to listen to USA markets preferences over furniture. There IKEA is currently givingmore decision making power with regard to design building in the USA markets subsidiaries. Entry into USA was not as successful as entering into European counterparts. The root of most of these problems was thecompany's not paying attention to local needs and preferences. US customers preferred large sets of furniture andhousehold items. For example, Swedish beds were five inches narrower than those US customers were used to, IKEA'skitchen cupboards were too narrow for the large dinner plates that were used in the US, 204 IKEA's glasses were inadequate for US consumers who generally add quantities of ice, therefore requiring larger versions, and IKEA chests of drawers were tooshallow for US consumers, who needed more room to store sweaters in them. In addition, IKEA Swedish-sized curtains didnot fit American windows. As a realized that a standardized product strategyshould be flexible to respond result of initial poor performance in the US market, IKEA's management to demands, and has recently adopted a more balanced strategic focus (by giving priority toglobal and domestic concerns). The current approach emphasises on global market coordination to reduce standardisationof activities and acquire both economies of scale and scope. IKEA redesigned its strategy and adapted its products to the US market. While overall its subsidiaries follow instructions from the corporate head office in Sweden, subsidiaries in the USare given more autonomy, to respond effectively to the local business environment. Required i. 11. iii. Discuss any four recruitment strategies that would be suitable for the IKEA subsidiary in the US Discuss performance standards that need to be observed by human resource managers to help the subsidiary in US to grow Illustrate global occupational health and safety standards that need to be observed in the context of IKEA business that just expanded to the US