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IKEA in Russia - Ethical Dilemmas

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
IKEA in Russia - Ethical Dilemmas
Abstract Case Intro 1 Case Intro 2 Excerpts


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.


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



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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