A. 2006-2007 Current Ratio = Current Assets/Current Liabilities =(1‚500‚000/2) / (600‚000/2) = 2.5 Quick Ratio = (CA - Inventories)/CL =(1‚500‚000/2)-(950‚000)/2)/(600‚000)/2) = 0.92 NWC to Total Assets Ratio = (CA - CL)/Assets =(1‚500‚000/2)-(600‚000)/2)/(2‚200‚000/2) = 40.9% 2007-2008 Current Ratio = Current Assets/Current Liabilities =(1‚770‚000/2) / (774‚000)/2) = 2.29 Quick Ratio = (CA - Inventories)/CL =(1‚770‚000/2)-(1‚100‚000/2))/(774‚000)/2) = 0.87 NWC
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consumers strategy cannot help IKEA achieve that aim. The reasons are that Scandinavian design and style is just a niche‚ that the market segmentation is narrow and that the target consumers are also just a small portion of the mass furniture buyers. These 3 aspects cannot help IKEA appeal broader consumers. So we need to reevaluate and redesign the three aspects. We can introduce more popular product and style‚ increase target market size and consumers size to help IKEA realize its aim. IKEA’s
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identified that IKEA has been usingVERTICAL INTEGRATION to the Global furniture industry. Managers use corporate levelstrategy in VERTICAL INTEGRATION to identify which industries their company shouldcompete in to maximize its long run profitability. There are two types of vertical integration:1. Forward vertical integration 2. Backward vertical integration. So far we found that IKEA using backward vertical integration to expand their business and to make profit. Here are some benefits of IKEA to have vertical
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Scandi Home Furnishings Case Kaj Rasmussen founded Scandi Home Furnishings as a corporation during mid-2007. Sales during the first full year (2008) of operation reached $1.3 million. Sales increased by 15 percent in 2009 and another 20 percent in 2010. However‚ profits after increasing in 2009 over 2008 fell sharply in 2010 causing Kaj to wonder what was happening to his “pride and joy” business venture. After all‚ Kaj has continued to work as close as possible to a 24/7 pace beginning with
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IKEA 1. A firm advantage of IKEA is they have a dedicated supplier network so they are able to offer quality furniture at low prices. IKEA reaps huge economies of scale from the size of its stores and the big production runs necessary to stock them since the same furniture is sold all over the world. Since IKEA saves‚ they are able to match their rivals on quality and still manage to undercut their furniture by 30 percent. A country advantage is they have more than 2‚300 suppliers in 67 countries
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lead to lower prices) IKEA: Indian Rugs & Child Labor Summary: Ikea is a Swedish furniture retailer. One of Ikea’s major suppliers for their rugs/carpets industry‚ Rangan Exports‚ is under accusation for the exploitation of child labor. This is a major reputation risk for Ikea. Marianne Barner‚ business are manager for carpets‚ evaluates alternatives of suppliers‚ and considers what they should do going forward. Problem: What actions should Marianne Barner and Ikea take‚ in order to protect
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IKEA associated with manufacturers in foreign countries that provided goods for a lower cost to the company. IKEA bought rugs from India at a cheaper price‚ “To create a better everyday life for the many people‚ however IKEA did not know that India was using child labor. They gained success by selling furniture to the public for a lower price. Unfortunately‚ IKEA was accused for child labor in India. IKEA was told that their producers were using child labor‚ which means that there were children working
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Journal of Business Research 58 (2005) 1251 – 1260 Information technology at IKEA: an ‘‘open sesame’’ solution or just another type of facility? Enrico Baraldia‚*‚ Alexandra Waluszewskib‚1 a Department of Business Studies‚ Uppsala University‚ Box 513‚ SE-751 20 Uppsala‚ Sweden Department of Business Studies‚ Uppsala University‚ Box 513‚ SE-751 20 Uppsala‚ Sweden b Received 15 March 2002; received in revised form 4 January 2003; accepted 15 May 2003 Abstract Information technology
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development‚ corporate attributes that allowed IKEA to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.[8] As of October 2011‚ IKEA owns and operates 332 stores in 38 countries. In fiscal year 2010‚ US$23.1 billion worth of goods were sold‚ a total that represented a 7.7 percent increase over 2009.[9] The IKEA website contains about 12‚000 products and is the closest representation of the entire IKEA range. There were over 470 million visitors
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High Development Across the World in Bed & Bath Furnishing Market Author: Rk Oberoi Bed & bath furnishings are required by everyone and with the globalization the demand for all types of trendy & stylish bed and bath furnishings has further aggravated. Youth of today wants everything very fashionable & in sync with each other. So‚ gone are the days when our mothers used to buy the bed & bath furnishings in bulk without noticing its color & designs. This change in the mind set has led to the
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