IKEA is also known as the most successful global retailer due to its unique production cost. IKEA has more than 43 manufacturing units over 12 countries and forward-thinking business strategies, reported by Financial Post. The fierce competitions opened its first wholly owned manufacturing facility in Jiangsu, China. This factory is around the world and the changes in environments are not seen as a threat for the producing wooden furniture and interior decoration materials and will supply to most of company. It is successfully transforming those challenges into business opportunities the stores in China. There are some crucial factors had led to IKEA's success, in terms of the globalization of Sweden based furniture giant, IKEA can target its China markets by producing at market and globalization of production have contributing much to the company's overall host country which help to reduce the transportation cost for exporting and transportation. achievement. The company has adjusted its strategies in order to adapt its operations to IKEA believes that choosing the right location for their local production base is critical the environment changes effectively. decision which allows the firm to reduce logistic cost. When the cost is lower, the IKEA is taking this trend by producing consumer furniture products in global market company is able to offer great home furniture at cheaper price with right quality. It can place. The company has benefited from globalization in several dimensions. A main enhance the competitive advantage in local market. When producing at foreign market advantage is seeking opportunities for growth through expanding and market such as China, IKEA has successfully cut prices by an average of 50% during year 2000 diversification. There are many substantial potential markets existed outside the home to 2012. Besides, globalization production allows firm to develop economies of scale in country. The globalization has enabled IKEA to growth internationally and becomes well sourcing, marketing and R&D. Economies of scale is the reduction of the cost per unit of known in many countries. There are many potential markets with the high growth rate manufacturing due to producing high volume. It also enables the firms to conduct better especially Asian market. Asian market is viewed as one of the main markets for global marketing and R&D in global market by the availability of accessing materials abroad. economic growth. The market is believed to grow at 6.1% at year 2015 and 6.2% in year IKEA is well known as practicing cost leadership whereby it is considered low cost 2016 under the forecast. IKEA has entered into this market by setting up many outlets in provider by offerings affordable furniture to most of its customers. Producing large Asia countries. The brand "IKEA" is existed in many countries which allowed the firm to volumes is the significant factor to make the prices low. The company successfully gain large economies of scale. Statistic shows that IKEA group is the world's largest achieved economies of scale in sourcing of materials which make the production cost furniture retailer who has more than 301 stores and 30 franchised units. The largest reduced. It has resulted in cheaper selling prices while maintaining good quality. market for IKEA is Germany with total number of 44 stores, the suppliers are more than Therefore, more customers choose to buy IKEA products. The company also reduces the 1380 in 54 countries and co-workers are exceed 154,000 in 40 countries. The company cost through increased specialization. IKEA has developed strong division of labor was founded in year 1943 with the concept of low-price business idea. It focuses on cost whereby particular products are made by specialized workers in different locations around reducing and innovation such as introducing materials that contribute to more the world. environmentally friendly. It makes the firm become famous in global marketplace where the manufacturing has been outsourced to China and other Asian countries. With the global expanding, IKEA has awarded "Brandz Top 100 Most Valuable Global Brands Asian Research Journal of Business Management Issue 4 (Vol.5)2018 Issn: 2321- 2014". Besides, globalization market allowed IKEA earns higher profits and margins. 9246.DOI:10.24214/ARJBMW/5/4/120128 Market growth in mature economies will force firms to seek for global market. Intense 1) What is the main conception created by IKEA to compete in global marketplace? competition also makes the firms to enter in other marketplace for better earnings and (2 marks) profit margins. IKEA has successfully ranked the 4th most valuable retailer in the world with the value of approximately 19.4 billion USD. The company operates businesses in 2) What are the TWO (2) main reasons that contribute to IKEA's achievement? (4 marks) more than 40 countries and achieved the sales of over 27.5 billion Euros in year 2012. Global market allows IKEA's revenues doubled in a 4 years period to from $600 million to 3) Identify FIVE (5) factors that makes "IKEA" brand is well-known in many countries and why $1.27 billion. By year 2012, United States was becoming the company largest market this firm able to gain large economies of scale. (10 marks) after Germany which accounting for 14% of the total revenues. Besides, IKEA was investing additional 2.5 billion Euros in year 2014 for stores, factories and shopping 4) Identify and explain the THREE (3) stages of analysis before entering into foreign markets. centres. (9 marks) IKEA has more than 300 stores over 40 countries which the furniture productions are manufactured in many locations. The company has benefited from globalization in 5) Discuss any THREE (3) modes of entry in international business. (9 marks) several dimensions. Going abroad or entering into global market can reduce cost of doing business. Firms can choose to enter into different market by fulfilling the local political 6) What are the THREE (3) advantages for IKEA when choosing China for manufacturing their requirements to produce the products due to the globalization of production. It helps the product? (6 marks) firms to reduce operation cost by getting cheaper raw materials. Besides, partnering with local suppliers can make sure the supply chain process is smooth and lower the overallCoca-cola is a beverage making company that has a global presence. It also acts the other players in the non-alcoholic beverage industry. The view of the members of the as a marketer and distributor of the non-alcoholic drinks in its brand array. The company supply chain that are in the bottom of the supply chain has led to the creation of is popular for the flagship product Coca-cola. The organisation of Coca-cola is peculiar competitiveness of the company as a whole (Dartey-Baah, 2013). in that Asa Candler builds its success on the franchises that it has been operating since The approaches used in the management of the human resources and the general the incorporation of the company. The company has a major presence in the global organisation of the company have sought to include the perspectives and needs of the market whereby it operates in 200 countries selling over 400 brands. In the franchises rest of the players in the supply chain. The company has been able to organise its system, the company only produces the concentrate syrup that is then sold to the bottlers operations in accordance to the expectations of the people (Hofstede, 2011). The of the company that are spread all over the countries where it has operations (Hofstede organisational culture of the company may draw a lot from the west, but the company has 2001). operations in all the areas of the world. The imposition of the culture that the company upholds in the headquarters to all the people will be uncalled for since the people that the company deals with are from the diverse regions of the world and they have different The main secret behind the success of the company on the global arena comes individual and national cultural organisation. The company tries to avoid the situation that from its commitment to work according to the tastes and beliefs of the people that are was described by Hofstede as the uncertainty avoidance around it. This is espoused in its mission whereby it acknowledges that the world is dynamic and the best way of acquiring the necessary competitive levels is by creation of The impositions of the cultural orientations of the company that is used in Atlanta the correct understanding of the forces that are in play and moving to prepare itself. The will be a sure recipe for uncertainty. The company has advanced this approach to all that company has organised itself based on two aspects; that is, the knowledge that it has it does even in the advertising such that it has the relevance to all the cultural groups that about current trends and the anticipated knowledge of the company concerning the most it sells it product to (Dartey-Baah, 2013). The company's ability to adopt cultural likely outcomes in the future. dimensions and incorporating them in the management approaches has led to the creation of the seamless unity between the cultural diversity and the superior economic The company organizes its sector alongside the tenets of diversity such that it will performance (Hofstede, 2011). The company has been able to distribute the power that accommodate all the people in all that it does. It has been particularly keen to provide for the people have when undertaking the operations at the company such that it has led to the diversity of the human beings. The company also works hard towards ensuring that all the creation of the best relationship with the people. This approach has been instrumental the people work towards a common goal. The company has of recently organized its in the reduction of the power distance and abolishment of the feeling that the company is activities towards the visions 2020. According to this vision, the company ought to be imposing itself on the people (Dartey-Baah, 2013). better than it is now. The organisation structure of the company in the headquarters is directed towards the attainment of the same goal. The bottlers are seen as the partners for the company since they deal with the distribution of the main product that the Dartey-Baah, K. (2013). The Cultural Approach to the Management of the International consumer takes (Hofstede, 2002). Human Resource: An Analysis of Hofstede's Cultural Dimensions. International Journal Of Business Administration, 4 (2). The company would be ill equipped to handle the diversity of the people if it was to operate as a global business empire that takes care of all the activities. This means that the company does not have the potential of handling the issues that are pertinent unless 1) What is the main product does Coca-Cola produce? (2 it includes the distributors since they have the real information on the operations of the marks) company. The organization structure that it has adopted has had a significant influence on the mode of operation of the company (Dartey-Baah, 2013). The same organisation 2) In the case study above, it stated that Coca-Cola is using franchise system. Therefore, structure has been the main source of the competitiveness in the market that has enabled could you please differentiate between International Franchising and Intemational the company to stand out among the peers. The other companies have tried a Licensing from what you have learnt in class. (4 marks) management system that seeks to control the activities of the bottlers or to involve themselves in the activities undertaken by the bottlers but have ended up failing. 3) For franchises system, the company only choose one product to be an established This means that the success elements that have affected the company on a large company all over the world. Why Coca-cola only choose one product to go global? (4 marks) scale have been due to the original organisation of the company and the relations that it has created with the other players in the market. The mere appreciation of the outside 4) How does the Coca-Cola can be sustained until now? Identify the TWO (2) reasons. suppliers as the main members in the success of the company have led to the (4 marks) development of a culture that seeks to involve itself with the affairs of the other players in the supply chain while reducing the common approach of the management adopted by