Business Finance Homework Help

In your own words, explain what CSR is. Name two examples of socially responsible companies you know and explain why you consider them so.

It is important for companies to incorporate social responsibility into their strategic plans. Give a brief summary of IKEA Company. What aspects of corporate social responsibility would you recommend they incorporate into its strategic plan?  

IKEA Political Environment

The company I will be discussing for this week’s discussion is IKEA. IKEA is a Swedish Furniture manufacturer founded in 1943(Benzaghta, 2021). Since 2008, IKEA has been the largest furniture retailer globally. As of March 2021, IKEA has 422 operational stores in 50 countries (Miller, 2021).  In 2020, IKEA posted revenues amounting to 40 billion Euros, a slight 4% decrease primarily due to COVID -19.IKEA’s Political Environment ChallengesThe United Kingdom is one of IKEA’s most important markets. The advent of BREXIT poses enormous risks to IKEA’s fortunes with the UK (Benzaghta, 2021). Additionally, IKEA has faced relentless scrutiny due to its prison labor in Eastern Germany in the 1970s (Miller, 2021). Even though IKEA has issued apologies before, the story significantly hurt its reputation.IKEA’s performanceIKEA has utilized Sweden’s political influence and goodwill in Asia to enter the Asian markets. IKEA’s entrance into Asia allows them to leverage on potentially most significant furniture market in the world based on population numbers (Benzaghta, 2021). Secondly, IKEA’s commitment to green energy and sustainable measures has benefited from beneficial government incentives to sustainable-run companies.IKEA’s Future ProjectionWith climate change advocacy at an all-time high, IKEA has chosen to shift its mode of operation and invest in an eco-friendly solution. IKEA has put a further 1 billion into green solutions (Benzaghta, 2021). The future lies with sustainable companies (Abraham, 2012); IKEA stands to leverage extensive political goodwill due to its commitment to sustainable practices.IKEA’s OpportunitiesSweden enjoys a cordial international relationship with many developing countries (Miller, 2021). IKEA could leverage these relationships to expand its operations to strong developing economies like Mexico, Brazil, South Africa, and Indonesia.ReferencesAbraham, S. (2012). Strategic management for organizations. Retrieved from https://content.uagc.edu/ (Links to an external site.)Benzaghta, M. A., Elwalda, A., Mousa, M. M., Erkan, I., & Rahman, M. (2021). SWOT analysis applications: An integrative literature review. Journal of Global Business Insights, 6(1), 54-72.Miller, B., & Smith, D. (2021). IKEA Strategic Management Plans in Europe. Journal of Strategic Management, 5(2), 1-7. Reply