Global Ethics free essay sample

Ensure you write your candidate number on any sheets which are to be handed in. †¢ Only University approved calculators are allowed. Question Papers must be handed in. †¢ This is a Closed Book Exam This paper consists of Six [6] questions on Two [2] pages Ikea Case Study Global Marketing Ethics and Culture catalogue: are there any cultural differences? IKEA was founded in Almhult, Sweden in 1943 by Ingvar Kamprad. The company name is a composite of the first letters in his name in addition to the first letters of the names of the property and the village in which he grew up: Ingvar Kamprad Elmtaryd Agunnaryd IKEA.The IKEA business philosophy is: We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them: In the late 1940s, the first IKEA advertisements appeared in local newspapers. Demand for IKEA products soared, and Ingvar Kamprad quickly outgrew his ability to make individual sales calls. We will write a custom essay sample on Global Ethics or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page As a result, he began operating a mail order catalogue and distributed his products via the county milk van. This resourceful solution to a difficult problem led to the annual lKEA catalogue.First published in Swedish in 1951, the IKEA catalogue was, in 2009, published each summer in 56 different editions, in 27 languages for 35 countries, and is considered to be the main marketing tool of the retail giant, consuming 70 per cent of the companys annual marketing budget. In terms of publishing quantity, the catalogue has surpassed the Bible as the worlds most published work at an estimated 199 million copies (in 2009) worldwide triple that of its less materialistic counterpart. However, since the catalogue is free of charge, the Bible continues to be the most purchased non-fiction work. ) In Europe alone the catalogue reaches more than 220 million people annually. Containing over 300 pages and about 12,000 products, it is distributed free of charge both in stores and by mail. The annual catalogue is distributed in August/September of each year and is valid for a full year. Prices in the catalogue are guaranteed not to increase while the catalogue is valid.Most of the catalogue is produced by IKEA Catalogue Services AB in IKEAs home town of Almhult, Sweden. At the beginning of 2009 there were 280 IKEA stores operating under a franchise from Inter IKEA Systems BV. Total lKEA turnover in 2005 was â‚ ¬22. 7 billion. IKEA accounts for just 5 to 10 per cent of the furniture market in each country in which it operates. More important is that the awareness of the IKEA brand is much bigger than the size of the company. That is because IKEA is far more than a furniture merchant.It sells a Scandinavian lifestyle that customers around the world embrace. Cultural difference There are about 12,000 products in the total IKEA product range. Each store carries a selection of these 12,000 products depending on store size. The core range is the same worldwide, but there are differences in how the IKEA catalogue displays its products in the different national editions. Here we have two different illustrations featuring the same product. Our two illustrations for the same product are taken from the Danish and Chinese catalogues.