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Location Strategy and Layout Strategy of Ikea

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Location Strategy and Layout Strategy of Ikea
OPERATION MANAGEMENT

The important chapters including Service Drivers and Productivity, Location Strategy, Layout Strategy and Human resources and Job Design are covered. However, in this paper, I will mention two of these issues: Location Strategy and Layout Strategy. Instead of giving many examples as those discussed in the previous paper, I will concentrate on China IKEA case to analysis Location Strategy and Layout Strategy deeply.

I. The Introduction of IKEA

IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. Today it is the world 's largest furniture retailer, recognized for its Scandinavian style. There are 310 stores in 38 countries and regions of the whole world, of which 8 stores are in mainland of china. They are Guangzhou, Shenzhen, Beijing, Shanghai, Shenyang, Dalian, Chengduand Nanjing. II. The Location Strategy of IKEA 1. Political risk, economy and culture a. The regime of politics and Government rules
The People 's Republic of China is a single-party state governed by the Communist Party of China. Political stabilization in china enables to develop economy. b. Economic issues
Since the introduction of market-based economic reforms in 1978, China has become the world 's fastest-growing major economy. As of 2012, it is the world 's second-largest economy, after the United States, by both nominal GDP and purchasing power parity (PPP), and is also the world 's largest exporter and second-largest importer of goods. On a per capita income basis, China ranked 90th by nominal GDP and 91st by GDP (PPP) in 2011, according to the IMF. 2. Labor talent, productivity, costs.
China is the world 's most populous country, with a population of over 1.3 billion with 71% (482,439,115 males; 455,960,489 females) are between 15 and 64 years old – the working age. China has abundant qualified labor source. Labor cost is low. From these factors, most of companies all over the

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