Both the instructions and the case study itself are linked in PDF files below, let me know if there’s any trouble accessing them. The goal of this assignment is to answer the four discussion questions and provide an introduction and conclusion as well. Here are those questions just to reiterate:
1. Critically analyze IKEA’s foray into Russia. In what ways was it successful?
2. Discuss the challenges faced by IKEA and how the company tackled these challenges and made a
mark in the Russian market.
3. Since IKEA continued to face several bureaucratic challenges in Russia, the retailer planned to
halt its expansion in the country. What should IKEA’s business strategy be in the future?
4. Consider the ongoing Russian-Ukraine conflict. How will it affect IKEA’s operations in Russia
and the rest of Europe?
Here is a summary of the case:
This case concerns Sweden-based furniture retail giant IKEA Group’s (IKEA) entry into and expansion in Russia. When IKEA entered this key emerging market as part of its international expansion strategy, it faced several roadblocks when setting up stores, inaugurating them, and even while advertising them. While IKEA tasted success in Russia, it was mired in several controversies: its executives were accused of taking kickbacks and engaging in corruption, while its ethical and environmentally sensitive image was also questioned as it was criticized for utilizing ill-defined Russian logging rules to cut down old growth forests. Despite several hurdles, IKEA planned to invest US$2.1 billion in the country since it sensed tremendous potential in the Russian market due to an increase in the disposable incomes of middle-class consumers. However, the business environment in the country was fraught with risk for the company. This case is also timely given the current political challenges in the global business environment facing managers in Russia.
