Research the Economy of the Philippines and Its Neighbors - Ikea Case Study

e-School of Business and Quality Management

International Business: Fall 2013 Semester

Course Faculty: Dr. Mahmoud Haj-Ahmed

Assignment 2

Instructions

a) This assignment comprises of two parts. You are required to complete the two parts of this assignment.

b) This assignment carries a 10% weight of the course total mark.

c) This assignment is due on Sunday 8th Dec. 2013. Late submission is not permitted.

Part One

Research the economy of the Philippines and its neighbors. In what economic sector is each country is strong? Do the strengths of each country really complement one another, or do they compete directly with each another? If you were considering investing in the Philippines, what management issues will concern you? Be specific in your answer.

(Hints:

(1) Start first by identifying the countries neighboring the Philippines.

(2) A good place to begin your search for information is the CIA’s World Fact-book. This can be accessed at: https://www.cia.gov/library/publications/the-world-factbook/ .)

Part Two

Read the case study titled “IKEA’s Global Strategy” and then critically answer the following question:

1) Has IKEA taken a standardization approach or an adaptation approach in its markets around the world? Do you think the company’s approach is the right one for the future? Explain.

2) Which retailers’ are IKEA’s biggest competitors in the UAE? Why?

3) When company founder Kamprad decided to expand into China, his decision was not based on market research, but rather on his own intuition. How well is IKEA doing in China? Did Kamprad’s decision pay off?

4) After failing in Japan two decades earlier, IKEA returned in 2006. Conduct some research into how IKEA fared the second time around in Japan. Was IKEA able to avoid the mistakes it made in its first failed attempt?

Research the economy of the Philippines and its neighbors.

Neighbouring countries of Philippines are Indonesia, Malaysia, Thailand and Brunei.

Economy of Philippines:

Philippines economy has handled global economic downturns much better than other countries. With its GDP growth being 6.6% in 2012, high dependence on imports as well as large