IKEA Is a Global Furniture Retailer with More Than 300

question 82

Multiple Choice

IKEA is a global furniture retailer with more than 300 outlets in 39 countries and regions.IKEA focuses on lowering its costs as well as understanding customer needs, especially younger ones.IKEA's international strategy is best described as __________, and the appropriate organizational structure to implement this strategy is the __________ structure.

• A) transnational; combination
• B) global; worldwide product divisional
• C) multidomestic; worldwide geographic area
• D) competitive; strategic business unit multidivisional

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Definitions:

Laptop Computers

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with advanced computing capabilities.

Income Effect

The variation in a person's or an economy's earnings and the impact of this variation on the demand for a specific product or service.

Substitution Effect

The change in consumption patterns due to a change in relative prices, leading consumers to substitute one product for another.

Diminishing Marginal Utility

The principle stating that as a person consumes more of a good, the additional satisfaction derived from consuming an additional unit lessens.