Case Study of Ikea - 1445 Words

Case Study of IKEA’s Global Sourcing Challenge In 1995, IKEA met a problem that its main supplier, Indian rugs, used the child labor to produce products, although they had signed an attachment of the contract to ban employing child labor. In addition, a German documentary maker was about to broadcast the problem of child labor on German television and also invited an employee from IKEA to have a live discussion in the TV program. Marianne Barner, the leader of IKEA, must find a great solution to this serious issue to both save her business and the corporation’s brand image. In this issue, IKEA was not the one who produced products, so they might not realize the use of child labor in the process of production. In addition, child labor†¦show more content†¦Moreover, customers will trust IKEA’s products because the label can indicate products are produced without child labor. However, working with the third party is also of some risk. For instance, if IKEA allows Rugmark to monitor the process of production, t hey will learn about some internal information about IKEA, such as the way to manage suppliers. The foundation has members such as manufacturers and retails. If they know this kind of internal information, they might utilize it. To be worse, if this information is leaked to IKEA’s competitors, IKEA will be uncompetitive. Another disadvantage is that if the third party asks IKEA to pay for supervision, it might be costly. Another way is to stop the relationship with these suppliers which use child labor and find some other partners. In this method, it can help IKEA get rid of the blame for using child labor. When IKEA does not sell the products which are produced by child labor, the issue will not hurt IKEA any more. But it is also of high risk. Child labor is a social issue embedded in Indian culture. If IKEA would like to find some suppliers without using child labor, it is almost impossible for IKEA to find suppliers in India. As a result, IKEA must target at other countries such as China or Vietnam which might have cheap labor force. However, searching for suppliers is very time consuming. In addition, if the labor force in other countries is not as cheap as that in India, theShow MoreRelatedIkea Case Study620 Words   |  3 PagesIKEA case study 1. Firm specific advantages IKEA has a variety of firm specific advantages since its business approach appeared to be very unique for the furniture industry. First, IKEA’s most important specific advantages were its good value for the money. IKEA used this advantage for its expansion plans all over the world. IKEA when they failed in the USA had to highlight this specific advantage to bail them out of the financial difficulty they had gotten into. Second, the most innovative decisionRead MoreIkea Case Study1030 Words   |  5 PagesI. Factors Contributing to Ikeas Success Swedish company, Ikea, has experienced many triumphs throughout the business history. Founder Ingvar Kamprad created a successful business from a financial gift his father gave him. There are several factors that contribute to Ikea’s success. These factors include their low cost price strategy, the design of their store, and the shopping experience for customers. Ikea’s low cost low pricing structure. Ikea’s low cost pricing strategy was a key to theirRead MoreCase Study Ikea1919 Words   |  8 PagesCASE STUDY [pic] International Strategic Marketing Management Success Factors of IKEA IKEA is one of the most successful furniture retailer’s worldwide. The factors that contributed to this success and distinguished IKEA from its competitors will be monitored in the following analysis. First, IKEA has found â€Å"niche† to serve. The fact that they are producing â€Å"Scandinavian style† products makes them unique. Their idea of offering a very broad range of products, with limited style variationsRead MoreIkea Case Study5459 Words   |  22 PagesCase Study IKEA: FURNITURE RETAILER TO THE WORLD INTRODUCTION IKEA is one of the world s most successful global retailers. In 2007, IKEA had 300 home furnishing superstores in 35 and was visited by some 583 million shoppers. IKEA s low-priced, elegantly designed merchandise, displayed in large warehouse stores, generated sales of â‚ ¬21.2 billion in 2008, up from â‚ ¬4.4 billion in 1994. Although the privately held company refuses to publish figures on profitability, its net profit margins wereRead MoreIkea Study Case2928 Words   |  12 Pagesâ€Å"IKEA invades Americaâ€Å" Case Study 27.11.2012 Marketing II Saskia Jaeger, David Varnai, Lukas Razmilić Table of contents 1 What factors account for the success of IKEA? 4 2 What do you think of the company’s product strategy and product range? Do you agree with the matrix approach described in Figure B of the case? 5 3 Despite the success there are many downsides to shopping at IKEA. What are some of these downsides? IKEA’s vision statement (in Figure C of the case) describes how the companyRead MoreIkea Case Study2106 Words   |  9 PagesMBAA 514: Marketing Case Study of the IKEA Company September 12, 2011 Embry-Riddle Aeronautical University- Worldwide â€Æ' Executive Summary IKEA (2011) has found a wide market in the discount furniture industry. The mission is simple- provide furniture to help everyone decorate as they like (IKEA, 2011). The company always strives to lower costs and pass savings to consumers (IKEA, 2011). It provides exceptional products which enabled the company to increase sales through the recession (MannersRead MoreIkea Case Study3501 Words   |  15 PagesMARKETING MANAGEMENT CASE STUDY Synopsis This case study is to deliberate about IKEA’s marketing strategy in reaching out customers. Also discussing about IKEA’s business idea and IKEA follows a quite traditional pattern of internationalizing and also drives the localization thoughts in different market place to stay competitive. Their vision â€Å"To create a better everyday life for the many† and their ultimate business idea â€Å" To offer a wide range of well designed, functional home furnishingRead MoreCase Study : Ikea Case Study1479 Words   |  6 PagesMike Borrelli April 31st, 2015 Global Strategic Planning Dr. Neiva Ethical Analysis Essay – IKEA Case Study IKEA, founded in 1943 by Swedish Ingvar Kamprad, is a global leader in the furniture industry. Starting as a mail-order company when Kamprad was 17 years old, the name IKEA comes from his initials along with his family farm (Elmtaryd) and his family’s parish (Agunnaryd). From this start-up that sold mostly small items like pens and binders, Kamprad added furniture to his mail-order catalogRead MoreIKEA Case Study1430 Words   |  6 PagesIKEA Case Study 1 IKEA - Case Study Panagiotis Charalampous Northcentral University IKEA Case Study 2 Synopsis of the situation IKEA (Ingvar Kamprad Elmtaryd Agunnaryd) is a privately held, international home products company that designs and sells ready-to-assemble furniture, appliances and home accessories. The company is now the world s largest furniture retailer. IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Sweden, named as an acronym comprising the initials of theRead MoreIKEA Case Study2977 Words   |  12 PagesReport To: Carol George From: Fangyi Shao Subject: IKEA case study Date: 24. Apr. 2009 1. Introduction IKEA is the world’s largest furniture manufacturer who offers a wide range of well-designed, functional home furnishing products at a low price that many people can afford it. IKEA’s mission statement describes the purpose and distinctive advantages of the company clearly. (See appendices â…  ) It can also motivate management by saying ‘create a better everyday life for people’ because employees

Essay on Mezzanine Finance Explained - 1794 Words

Mezzanine Finance by Corry Silbernagel Davis Vaitkunas Bond Capital With a supplement by Ian Giddy Mezzanine Debt--Another Level To Consider Mezzanine debt is used by companies that are cash flow positive to fund: further growth through expansion projects; acquisitions; recapitalizations; and, management and leveraged buyouts. When mezzanine debt is used in conjunction with senior debt it reduces the amount of equity required in the business. As equity is the most expensive form of capital, it is most cost effective to create a capital structure that secures the most funding, offers the lowest cost of capital, and maximizes return on equity. Mezzanine debt has been around for over 30 years, however its use in Western Canada and the†¦show more content†¦Although it makes up a portion of a companys total available capital, mezzanine financing is critical to growing companies and in succession planning in recent years. The gap in funding between senior debt and equity is common for the following reasons: 1) accounts receivable, inventories and fixed assets are being discounted at greater rates than in the past for f ear that their values will not be realized in the future; 2) many balance sheets now contain significant intangible assets, and, 3) as a result of defaults and regulatory pressure, banks have placed ceilings on the amount of total debt a company can obtain. While additional liquidity can be obtained from equity investors, equity is the most expensive source of capital. Further, equity capital, by its nature, dilutes existing shareholders. As a result, mezzanine debt can be an attractive alternative way to obtain much needed capital. Capital Structures While there are no hard and fast rules for optimizing a company’s capital structure, companies that are ahead of the curve use an efficient combination of senior debt, mezzanine debt, and equity capital to minimize their true cost of capital. COMPANIES WITH EFFICIENT CAPITAL STRUCTURES EMPLOY A NUMBER OF CAPITAL SOURCES Expected Returns (%) Typical Private Equity Structure (% of total Assets) Senior Debt and Asset Backed (Stretch) Lending 30% - 60% 5% - 12% Mezzanine 20% - 30%Show MoreRelatedThe Debt And Credit Crisis2495 Words   |  10 Pagesback to the industrialization period in the United States where business and finance developed together (Cioffi, Lecture 10/21/14). Finance and industry cooperated with each other, as banks invested in business and provided the capital needed for the industrial sector to develop (Cioffi, Lecture 10/21/14). Finance and industry became codependent on each other to thrive and progress. Consequently, a system grew where finance became the major player behind every aspect of American political economy.Read MoreFinancial Crisis Of The Brc Economies2217 Words   |  9 Pages(from the MBS) were known as Collateralized Debt Obligation (CDO), and were offered by the SPE. The CDO would be split into 3 tranches (equity, mezzanine, and senior), and assigned a rating by rating agencies based on the creditworthiness of the borrower. If the SPE collapsed, the senior tranche would have precedence of their recove ry of assets over the mezzanine and equity tranche. The senior tranche has the highest price, but the lowest risk of default, while the equity tranche has the highest returnRead MoreCorporate Business Finance 7343 Words   |  30 PagesCorporate Business Finance Seminar 5 Project Finance Lauren Leigh Essaram 207507339 Ruvimbo Mukorera 206525531 27 September 2010 Submitted in partial fulfilment of the duly performed requirement of International Business Finance, School of Economics and Finance, University of KwaZulu-Natal Abstract Non-recourse financing has grown in popularity, especially in developing countries. It has done so more specifically in the basic infrastructure, natural resources and also in the energyRead MoreSubprime Mortgage Crisis - a Case Study on Morgan Stanley4048 Words   |  17 Pagesmain slices called senior (low risk), mezzanine (middle risk) and equity (high risk) tranches as shown. Figure 2: A typical CDO tranching structure The division of CDO into various different tranches indicates the sequential allocation of the underlying assets’ default risk. And since higher risks generate higher returns, the equity tranche will receive the highestreturn to compensate for taking on the highest default risk, as compared to the senior or mezzanine tranches. However, when things go wrongRead More2008 Financial Crisis - Lehman Brothers, Fannie Mae and Freddie Mac3431 Words   |  14 Pagescentral banks tried to pump in large amounts of liquidity into the global financial system. On 7th September 2008, James B. Lockhart III (2008) announced the decision to place Fannie Mae and Freddie Mac into conservatorship run by the Federal Housing Finance Agency. On 15th September 2008, Lehman Brothers filed for bankruptcy, which caused a series of drastic changes in the stock market. The subprime mortgage meltdown in the US created an economic tsunami that effectively froze the world’s credit marketsRead MoreSeag ate Buyout8389 Words   |  34 Pagescan issue their shares to shareholders without causing tax implications (Mintz). Unfortunately, as it states in an article by S. L. Mintz in CFO Magazine, VERITAS was not interested in venturing into the disk drive industry. The CFO of VERITAS explained that he thought it would be a distraction from their software business. Horizontal merger or buyout The presenting group mentioned a merger as an option to address Seagate’s low stock price, but they never elaborated on benefits or problematicRead MoreMix of Debt and Equity6786 Words   |  28 Pages a) Definition Classifications of Equity Financing 16 b) Advantages of Equity Financing 18 c) Disadvantages of Equity Financing 19 3. The mixture of Debt and Equity 20 a) Definition 20 b) Why do virtually all companies choose to finance themselves by the mixture of debt and equity? 22 c) What factors can affect the ratio of debt and equity of a company? 22 d) Optimal Level of Debt-to-Equity 24 V. CONCLUSION 27 I. ABSTRACT In the age of Globalization and specially globalizedRead MoreThe Aig Bailout22345 Words   |  90 Pagespublic/_files/KohnStmtMarch52009.pdf. 2. Press Release, American International Group, Inc., AIG Reports Full Year and Fourth Quarter 2007 Results (Feb. 28, 2008), available at http://idea.sec.gov/Archives/edgar/data/5272 /000095012308002282/y50505exv99w1.htm. 3. Yahoo! Finance, AIG: Historical Prices for American International Group, Inc., http://finance.yahoo.com/q/hp?s=AIG (last visited Sept. 29, 2009) (on file with the Washington and Lee Law Review). THE AIG BAILOUT 945 loan.4 Government aid has since grownRead More Biography of Joseph Patrick Kennedy Essay3933 Words   |  16 Pagesfinancial genius all right, but in politics, he is something else.† Kennedy distanced himself from his son during the period prior to and during the nomination process, and did not return to Massachusetts until the election took place. His wife, Rose explained: â€Å"He has been a controversial figure all of his life and he thinks it’s easier for his sons if he doesn’t appear on the scene.† Jack Kennedy won the presidential election in 1960, fulfilling his father’s dream. But Kennedy’s reaction was modest:Read MoreDarden Mba Resumes16768 Words   |  68 PagesEDUCATION Darden Graduate School of Business Administration University of Virginia Candidate for Master of Business Administration, May 2011 ï‚ · Awarded Batten Innovation Scholarship (merit-based full tuition scholarship); ï‚ · GMAT: 730; AWA: 5.5 ï‚ · Member of F inance Club, Energy Club and Darden Capital Management Club Charlottesville, VA Nanyang Technological University Singapore Bachelor of Engineering (Computer Engineering) and Minor in Business, June 2006 ï‚ · Awarded full scholarship (among top 50 from over

Service Dogs for Autism - 1145 Words

As of 2012, the US Centers for Disease Control and Prevention reports that one in 50 children between the ages of six and seventeen has autism spectrum disorder, with males being four times more likely than females to have these conditions (Slaughter 1). Autism is a developmental disorder that affects the brains normal development of social and communication skills. Service dogs are normally used to aid the blind, deaf or hard of hearing, and other types of disabilities. Service dogs have recently been used to help children with autism. The service dog industry has had a growing impact on the autism community, the benefits and disadvantages affect each child differently. Autism was first discovered by Leo Kanner in 1943, he labeled it as†¦show more content†¦The dog becomes the child’s constant companion, the sense of loneliness is taken away from the child. The children in these cases reported increased physical independence and freedom from relying on others to assit in daily tasks (Davis 136). The dogs undergo serious training before being placed with the child. Sometimes the dog and child would actually meet weeks leading up to the placement to warm up to eachother before permanent placement. The parent is the primary handler, the dog is trained to guide the child but ultimately take orders or listen to the parent. The dog is tethered to the child by a harness and put on a leash that the parent carries, this gives the child freedom and the parent security, the dog controls the child from darting off. The cost of a service dog can be very expensive, if not obtained by an organization that receives donations and helps the family out. The average annual cost to maintain a dog was $1307, with a range of $195-$5134 (Davis 134). The daily routine changes in some of the families affected the dogs negatively. The dog would have bathroom accidents in the home, which were frowned upon by the family. The stress of the day to day activities with the child would be too much for the dog to handle at times, fatigue and attitude changes were apparent. The majority of problems faced with a service dog can be eliminated, with a set routine and normal breaks given to the dog. Public places nowadays are normallyShow MoreRelatedThe Effects Of Animal Assisted Therapy On An Individual s Life1152 Words   |  5 Pagesa lot of attention is the use of animal-assisted therapy (frequently dogs) for individuals with autism. While research is limited, studies reveal that children with an ASD laugh, talk and display other positive social behaviors when they have a companion animal with them. A recent study explored the viewpoints of youth with autism spectrum disorders (ASDs). This innovative study finds that animals help individuals with autism combat feelings of loneliness. Additional research finds that animalsRead MoreCompanion Dogs, Making a Difference1108 Words   |  5 Pageschildren with autism having a companion dog is the difference between life and death. Methodically trained guide dogs help create an environment where autistic children are comfortable enough to live a more ordinary lifestyle. Autism spectrum disorder is a major public health problem th at is the most common neurological disorder affecting 1 out of every 110 births in the US (Autism Society, 2009). ASDs can range in severity from Asperger Syndrome, a high-functioning form of autism where the childRead MoreFinding The Way With Service Animals Essay1323 Words   |  6 PagesFinding the Way with Service Animals Johnny had never smiled in his entire four years of life, until July, 2015. He received a life changing gift, a service dog trained as a companion to children with autism. His family had researched and tried many ways to help him have an easier and more interactive life but to no avail until he got his service dog. Improving life emotionally, physically and/or socially is the overall goal of people and/or families with service animals. There has been a long historyRead MoreHealth Benefits Of Owning A Dog1504 Words   |  7 PagesHumans Need Dogs Most people know that pets are good companions, but they can also be therapists, teachers, and healers. â€Å"Sixty-two percent of American households include pets,† said the Humane Society of United States (Casciotti Zuckerman, 2016). When people hear about dogs helping humans, one of the first things that might come to mind, are the dogs that help the blind or disabled. Another thought might be the dog that saves a family from their burning home. Today, there are dogs that help withRead MoreHow Does An Autism Assistance Dog Positively Affect The Autistic Child?1435 Words   |  6 PagesResearch Question: How does an autism assistance dog positively affect the autistic child? I decided to research this topic as I have always been interested in animals and want to pursue a career working with animals. After watching a captivating news clip on assistance dogs it was clear this was going to be the topic I would investigate for my research project. I researched autism assistance dogs (AAD), specifically their training, eligible criteria and positive effects on the child. I read websitesRead MoreA Best Friend Is Man’s Best Friend1574 Words   |  7 PagesDolores Ramirez Prof Grace Rocha Writing 10 Section 29 Rough-Draft #2 March 18, 2013 A Best Friend is Man’s Best Friend Dogs have been known to be â€Å"Man’s Best Friend† for thousands of years. More commonly known to be man’s best friends are dogs, rather than cats and any other animal. Most people consider a best friend as someone who is there for you when you are sad or lonely, when you need someone to talk, cry, or laugh, however a man’s best friend is all the same and more. Dog’s today areRead MoreAutism Spectrum Disorder ( Adhd )1397 Words   |  6 PagesAutism, also referred to as Autism Spectrum Disorder(ASD), is a neurological disorder that causes difficulties with social interaction and affects 1 out of 68 children in the United States. People with this diagnosis have difficulties with social interaction, challenges with communication, and often engage in behaviors that are repetitive but are different with every child. With no known cause, autism is on the steady rise and it is important for people (especially parents) to learn how to helpRead MoreThe B enefits Of Animal Assisted Therapy Essay1684 Words   |  7 Pagesdiscuss research that has been conducted on the benefits of animal-assisted therapy in relation to mental and emotional well-being, and as it relates to recovery. I have applied my research to include a variety of subjects, including children with autism, patients suffering from PTSD, college students, the elderly, and outpatient recovery. Finally, I conclude my report with a proposal of a new AAT program that will benefit the community and reduce pet homelessness. IntroductionRead MoreAutism Spectrum Disorder and its Causes Essay906 Words   |  4 Pagesfifty children was diagnosed with autism spectrum disorder. Since then, there has been a drastic increase on the incidents of this disorder. In 2013, according to the Centers for Disease Control, Autism spectrum disorder occurs in one out of eighty eight children. (CDC, 2013) That is a significant increase over a relatively short period of time. With such an increase, it is important to learn what autism spectrum disorder is and what might cause it. Autism spectrum disorder is the term usedRead MoreChildren With Autism Spectrum Disorder ( Asd )1144 Words   |  5 PagesSummary This article is all about AAI otherwise known as the animal-assisted intervention. AAI has been suggested time and time again as a possible treatment practice for people with autism spectrum disorder (ASD). The Article starts off by talking about autism what it is and the diagnosis of it. It then goes into detail to talk about AAI; AAI is an alternative intervention that has developed into treating all sorts of individuals with a range of medical issues and developmental issues. The article

Combination of Two Companies Having Business in Same Industry

Question: Discuss About Combination of Two Companies Having Business in Same Industry? Answer: Introducation: This report is prepared on the basis of business combination of two companies having business in same industry. These two companies named Novotel and Sofitel want to enter into strategic alliance in order to increase their profit. In this case, both companies need to comply with competition law, free trade law, and cartel prohibition laws. With the increasing ramification of Australian economic changes, there are several laws and regulations which are applicable for the companies going in business combination. However, in Australia, if companies are making cartel by entering into joint ventures or strategic alliance with each other then in this case this sort of combination would not be acceptable. In this report, two companies Novotel and Sofitel are entering into business combination with a view to increase their overall profit. Nonetheless, this profit could be increased only when these two marketing department provides synergy. In addition to this, when these two companies having business in same industry need to avoid these following strategies such as price fixing, market sharing, limitation of products and bid rigging. These all are the criminal offence under the enterprises act and it could also result into severe penalties for both the business and individual directors of both companies. Novotel and Sofitel both are making strategic alliance by combining their marketing department to create marketing arm against other rivals (Rahim and Brady, 2015). Therefore, both companies need to avoid acts which fall under the cartel act such as price fixing, market sharing, limitation of products and bid rigging. This report will reflects several points and factors on the business combination and how companies could create synergy by making strategic alliance. This strategy has been proposed by company to create marketing arm and create shield against all the competitive strategies of rivals in market. Therefore, both the companies need to comply with the business combination law before entering into strategic alliance with each other. It is evaluated that Novotel and Sofitel both are independent organizations and want to make combination of their marketing department with a view to increase the overall profit. Therefore, both organization need to enter into strategic alliance contract. These types of combination could be referred as merger or amalgamation of two businesses. In addition to this, both the companies have to comply with laws and notifications issued by Australian Competition and Consumer Commission. It is observed that making strategic alliance with other organizations requires various documentations, complying with competition laws and regulation and complete level of disclosure to all the stakeholders of organizations. In addition to this, both companies also need to make disclosure to general public by publishing its information in two newspaper one in vernacular language and other one in English language (Mitchell, et al, 2016). References Mitchell, R., O'Donnell, A., Marshall, S. and Ramsay, I., 2016.Law, corporate governance and partnerships at work: a study of Australian regulatory style and business practice. Routledge. Rahim, M.M. and Brady, I.M., 2015. The Collective Bargaining Authorisation Provision for SMEs in the Australian Competition Law-Serving or Distorting a Public Benefit