Corruption in Russia: IKEA's Expansion to the East (B) Case Solution
(This is basically a supplement to the case ES1691.) The case (A) describes a challenge IKEA was facing, while trying to enter Russia in 2000. The firm was preparing to open its first flagship store on the outskirts of Moscow, only the first of several endeavors that were planned. IKEA focused on advertising, but immediately faced a sudden issue despite substantial investments in infrastructure and logistics. Its important ad campaign in the Moscow Metro was deemed tasteless by Russian customers.
IKEA had to stop the campaign because it "could not demonstrate". Lennart Dahlgren, the man responsible for company’s operation in Russia, soon understood that the unsuccessful ad campaign was going to be the least of his difficulties: A few weeks before the planned launching, the local utility company determined not to provide store services in a situation where IKEA would require indulging in bribery. What alternatives does the company have? Were there alternatives from this manner, and paying?
PUBLICATION DATE: May 10, 2016
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
Related Case Solutions & Analyses:
France Telecom-Orange in 2011: Stephane Richard and Conquests 2015
Norway Sells Wal-Mart
Leadership Succession at Achal: A Tough Nut to Crack
Singareni Collieries: From Gloom to Glory
China Novartis Institute for Biomedical Research: Building a sustainable, globally integrated research enterprise
Effective Leadership in Unexpected Places: A Sociohistorical Analysis of the Red Tops Dance Orchestra
Dealing with a Changing Environment: Fundacion Peruana para la Conservacion de la Naturaleza (A)
The Oregon Benchmarks Program: The Challenge of Restoring Political Support: Sequel
Anne Livingston and Power Max Systems (C2): Building Role Credibility
Jensen Shoes: Lyndon Brooks’ Story
