Macro Environement Influences - Pestle Analysis Essay Example
Macro environment influences – PESTEL Analysis
The external environment is influenced by certain factors that in turn affect the overall industry and the company as a unit. Hence the PESTEL Analysis of Sweden is used in detail according to Figure 01 in the Appendix.
Political – Legal environment
IKEA has throughout the years, received the utmost support from its own country’s government officials. The company has always complied with observing the laws and regulations of its home country. Now with over 226 stores in Europe, Asia, Australia and the U.S they also have to comply with the political and legal environment of other smaller economy countries that are under political influence. The government disapproves that IKEA spent $468,003.75 on the so called ‘Measure C’ campaign, conducted in East Palo Alto in the U.S in March 2009. IKEA was said to have bribed city residents to campaign and vote for its proposed 300,000-square-foot Swedish furniture store in the Ravenswood 101 Shopping Center. (“Politics: Question of the week – IKEA’s campaign spending”, 2002)
In another incident a Swedish radio station observed that Palestinian government officials said that IKEA's policies discriminated against Palestinians and in addition accused them of the fact that their shipping policies violated the company's code of conduct, which is published on its website ("IWAY Standard" [PDF]). (Nieuwhof, 2010, July 06)
With regard to trade laws Russia, in an antimonopoly investigation which took more than four months beginning at 30th September 2009, the Office of the Federal Antimonopoly Service in the Moscow Region (the Moscow Regional OFAS Russia) found that "IKEA MOS" Ltd. (commerce and real estate) violated Part 3 Article 11 of the Federal Law "On Protection of Competition" where "IKEA MOS" Ltd. Were restricting competition by not giving out leasing premises in shopping centers to other competitors. (SKRIN Market & Corporate News, 2009)
This clearly shows that
The external environment is influenced by certain factors that in turn affect the overall industry and the company as a unit. Hence the PESTEL Analysis of Sweden is used in detail according to Figure 01 in the Appendix.
Political – Legal environment
IKEA has throughout the years, received the utmost support from its own country’s government officials. The company has always complied with observing the laws and regulations of its home country. Now with over 226 stores in Europe, Asia, Australia and the U.S they also have to comply with the political and legal environment of other smaller economy countries that are under political influence. The government disapproves that IKEA spent $468,003.75 on the so called ‘Measure C’ campaign, conducted in East Palo Alto in the U.S in March 2009. IKEA was said to have bribed city residents to campaign and vote for its proposed 300,000-square-foot Swedish furniture store in the Ravenswood 101 Shopping Center. (“Politics: Question of the week – IKEA’s campaign spending”, 2002)
In another incident a Swedish radio station observed that Palestinian government officials said that IKEA's policies discriminated against Palestinians and in addition accused them of the fact that their shipping policies violated the company's code of conduct, which is published on its website ("IWAY Standard" [PDF]). (Nieuwhof, 2010, July 06)
With regard to trade laws Russia, in an antimonopoly investigation which took more than four months beginning at 30th September 2009, the Office of the Federal Antimonopoly Service in the Moscow Region (the Moscow Regional OFAS Russia) found that "IKEA MOS" Ltd. (commerce and real estate) violated Part 3 Article 11 of the Federal Law "On Protection of Competition" where "IKEA MOS" Ltd. Were restricting competition by not giving out leasing premises in shopping centers to other competitors. (SKRIN Market & Corporate News, 2009)
This clearly shows that