At the beginning two ideas or moreover strategies were introduced: the Functionalism and the Federalism. The former means to find a way of cooperation between the states through integration of common economic functions. The latter formulates the idea of a European Federation. The functionalist approach was highly
With this approach, they were able to create a goof relationship with their supplier who is based in the country of where you want to operate. This method worked when entering the European and North American market and it worked well to develop the IKEA concept. (Global Marketing, 2012) Franchising Franchising was the second favorite approach that IKEA used with entering the market with their market entry strategy. The following figure of our class material will show you the main differences within the company of IKEA between the franchisor and the
This aims to accomplish customer demands by knowing their needs. It will also contribute to the communities in which it operates. The launch of International operations would also be in sight of company. Weaknesses Weaknesses can be defined as a disadvantage that tends to put company at lower position compared to its competitors. The strategies of the company are strong and their strength lies in the sense that helps the management to build up strong relationships with both buyers and suppliers (Rudolph, 1995).
Business Structure IKEA operates its business on global scale and maintains it in centralized control over functional activities and benefits from high quality and low cost suppliers. In order to ensure efficiency in the logistics process, the organization has integrated purchasing and distribution processes under one umbrella function. The rapid internationalization triggers a range of challenges imposed on the headquarters in Sweden e.g. increasing difficulty of responding to national needs and cultural nuances, impact of emerging demographic trends forcing IKEA to broaden its focus strategy to respond to varying nation-level consumer groups etc. These changes can influence the maintaining of IKEA‘s global organizational structure.
Integration can be defined as of attaining close coordination between several groups , departments , the system in which the people doing work making them work together to attain business goals , Integration is like not only achieving the business goal but also it is helpful in combining the technology into business strategy and goals . Now the question is why Integration is important for business because with the help of integration we will be easily able to address customer demand and feedback for our product which is very important for our business as today’s world is of competition market so customer needs should be the top most priority , so Integration helps us in that and which ultimately helps us in increasing the sales of our organization.
Furthermore, Sweden embraces new technology and R&D, this is a clear signal that this is a market-pull approach and in favor to Hyflux operating model. It is recommended that Hyflux continues to have a stake in the Swedish market as the country is conducive in meeting the needs of the company and the company being able to provide what the market requires. To facilitate Hyflux in gaining a portion of the Swedish market, the author would like to recommend the company to implement collaborative venture. To speed up the venture, and not to miss the optimum timing of entry, it is advisable for Hyflux to collaborate with either the government or some other potential so as to speed up the setup of business.
Under globalisation, companies are always trying hard to get survive in the current business climate. Therefore, in order to achieve competitive advantage, an organisation has to practice and implement strategies to run their business. First and foremost, by using better information system operation is the main key to the success for an organization. Our group has found a number of researches to look for the company with better information system operation. Furthermore, we found Tesco as it was one of the largest global retailers with better quality of information system operation.
To start with, incompatibility among joint partners is one of major factors causing failure. It refers to differences in culture or objectives can give rise to different level of conflicts and poor performance (Le, 2010). For instance, Danone Group has disagreement with Britannia Industries on marketing strategy, brand management, and intellectual property more than one year. Finally, these two companies terminated cooperation relationship and Danone compensated for Britannia $170 million (Leahy, 2007). Britannia disagreed that Danone had registered same brand in other countries and did not inform them, which against Indian Law.
The company hopes to strengthen the country's economy by investing a great deal of effort in exporting its products to the international market. 16. SWOT ANALYSIS: WHY SWOT ANALYSIS IS NEEDED i. IMPORTANCE OF SWOT IN REGENT CONTAINER LINE LIMITED The SWOT analysis is the key to setting up a stable organization. The S stands for strength, the W stands for Weaknesses, the O stands for Opportunities while the T stands for threats.