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Btec Business Unit 1 P6

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Political, Legal, Social influences on IKEA in China. Includes political, legislation examples, food and safety, social influences. PASSED

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Lexi Thomas Unit 1 P6
Task 1. Political, Legal, Social inflences on IKEA in China

Ikea China general http://www.bbc.co.lk/news/world-asia-pacifc-11017877 https://www.google.co.lk/?
gws_rd=ssl#q=ikea+expansion+china+IKEA+PR

Inflence in China Description of Inflence Describe the impact on Describe the impact On
IKEA Activities IKEA Stakeholders

Political
Transport and With the population growing rapidly The government profoundly This has a major impact on
Infrastructure therefore increasing urbanisation, the capitalised in investing in retail customers as a stakeholder as
building of roads, airports, rail networks stores in China. In 2009 there it gives them more access to
and cities was required to be able to were reportedly 549,000 retail Ikea stores and products to buy
cope with this increase of population. stores and brought in revenue which benefts Ikea and the
The Chinese government support this of $1.8trillion in 2009 which customers. Improvement of
growth of transport and infrastructure has since expanded greatly up transport and such as roads
to support the middle group in society until the current day and still and new rail networks allows
in hope to help them expand and grow continues to increase. These them to travel to Ikea stores
into the upper class to then have more stores have been able to grow and the development of
disposable income to spend. due to the improvement of infrastructure and stores gives
infrastructure and has aided in the customers more options of
helping Ikea’s manufacturing stores to travel to.
activity in China and has The impact it has on employees
helped them grow and expand. is that it gives more
opportunity of stores for them
to work in and provides new
jobs for the new stores which
keeps the unemployment rates
lower and still gives them a
salary and a disposable income
to spend in retail stores such as
Ikea.
Managers are impacted by the
improvement of transport and
infrastructure as it brings in
more revenue for their stores in

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