Read through the IKEA study. Look at the Problems number 1-3 listed on page 9-10 and give an explanation why in your opinion it is a problem. please give as much information as you can and answer in paragraphs! there is no word limit!!!!!!!

Opportunities: - Untapped markets (Midwest, Corporate...etc.). - Educate consumers on IKEA thru advertisements. - Different type of stores such as outlets or high-end labels. - Increase online sales and Internet presence. - IKEA can expand into many more cities in the world. - Use the popularity among young people to expand to college markets. - Existing stores are few and large, new stores could be many and smaller. Threats: - Indirect threats from Wal-Mart, home depot, pier. - The global economic crisis. - Social trends - such as the slowdown in first time buyers entering the housing market. This is a core market segment for IKEA products. - Market forces - more competitors entering the low price household and furnishings markets. IKEA needs to reinforce its unique qualities to compete with these. - Economic factors -the recession slows down consumer spending and disposable income reduces. Major issues that face or may face IKEA: Problem \#1: The high flow of visitors at one-time leads to many problems resulted from the lack of manpower who can meet this climax. Solution: Since its December 2004, IKEA has used Beonic's Traffic Insight visitor flow system to ensure its checkouts are never short-staffed. Problem \#2: IKEA suffers from a lack of innovation and faces the possibility of offering a very similar product base. This is due in part to the lack of fresh blood in the organization. IKEA's policy of hiring the same genre of people leads to inhibiting diversity and innovation to meet change in new markets. Recommendation: IKEA should broaden its selection base of hiring people. Whilst not changing the core competencies required of key staff, a new emphasis should be placed on the hiring of people from a mix of backgrounds and personalities. This will promote diversity, infusion of new ideas and ensure the richness of the culture. Limitation: This diversity may however lead to lack of goal congruence and a distraction from the common goals. There may be a waste of resources to get such a diverse group to agree to a common viewpoint. Problem \#3: Not enough like-minded managers (Swedes) to manage stores. Recommendation: There are two options to solve this issue. Firstly, a solution would be to hire more Swedes with similar work ethos and cultural similarities. Secondly, another option is to promote successful managers from various countries to expatriate jobs in other geographies. This would not only achieve strong transplantation of talent but also build strong and committed global managers. Limitation: There may not be enough capable candidates in the overseas poll of Scandinavian expats. Additionally, looking at the second option of transplanting foreign mangers in businesses outside their home countries may foster feelings of resentment of locals, inhibiting individual advancement