DISCUSSION QUESTIONS 1. Looking at IKEA's challenges, which ones do you think pose the greatest threat? Why? The one that faces the great threat is the lack of adequate supply of wood. This is because lack of wood supply implies that the company does not have the potential of expanding globally. Such a situation will occur since it does not have sufficient raw materials to sustain the conduct of its business activities. Moreover, deforestation has become a global issue, which implies that the company may lack carbon credits. As such, the target market may decline as potential customers become sensitive to the global issue of deforestation. 2. How would you address the challenges you identified in Question 1? The problem lack of adequate supply of wood can be solved if the company can engage in environmental activities, which involve planting of trees. This will ensure that the company has the ability to access its own raw materials, as well as from other sources. Further, IKEA should partner in business and environmental activities with companies that produce wood. As such, it will become easy for IKEA to acquire raw materials. 3. Did it surprise you to learn that both a developed country (the United States) and also emerging economies (i.e., China and Russia) are the fastest- growing international markets for IKEA? Does this fact pose any challenges in the way that IKEA ought to compete across the globe? Why or why not It was a surprise. This poses a challenge to IKEA in terms of marketing strategies. This is because there are several other companies, which have identified the potential of the global markets that are competing for the existing customers. Hence, IKEA has to formulate a marketing strategy that is sensitive to cultural differences, which will enable it to thrive in the stiff competition.
4. What can IKEA do to