IKEA in Russia - Ethical Dilemmas




Case Details Case Introduction 1 Case Introduction 2 Case 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.

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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
EXHIBIT

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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