2. BACKGROUND
2.1. Indonesian Furniture Industry
This section provides an overview regarding the role of Indonesia’s furniture industry for its economy, also general information about the type of furniture products that have been exported to EU market and some furniture exporter countries which become the major competitor for Indonesia.
Indonesian furniture industry is one of the potential sub sector in Indonesia. This Industry creates great job opportunities for Indonesian people. Furniture industry employs two million people directly, with an additional eighth million workers indirectly. Most of the industry is small and medium enterprises (SMEs) that could lead to substantial poverty alleviation throughout Indonesia. Typical Indonesian furniture products are made of wood and rattan. Around 57 per cent of Indonesian furniture exports are made up of wooden furniture, another 20 per cent of its export consist of furniture of rattan, and around five per cent includes other materials such as bamboo, plastic and metal. This is because of Indonesia has abundance raw materials, especially woods. Almost 108 million hectares of Indonesian land area consist of permanent forest (TREDA 2008). European countries and the United States are the
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It is because, it provides large market share. With the population over 500 million people, the EU accounts for about one quarter of the global world furniture market. The trade balance for furniture product in the EU market has decreases dramatically. From 2002 to 2008 the trade balance of EU furniture product deteriorate, almost 1.8 billion euros. It means that The EU countries import more furniture product from abroad rather than to export it. This is due to rapid penetration from other furniture exporter countries such as China, Vietnam, Malaysia and Indonesia in EU market (UN COMTRADE
Wood types differ considerably in properties such as color, density, and hardness, making timber a resource that is valuable in a wide variety of contexts. Each of the samples of commonly used woods shown here has distinctive characteristics. Mahogany is a tropical tree prized for its heavy, strong, easily worked wood. Hickory is a tough, hard wood used for tool handles, furniture, and smoke wood for meat. Instrument makers favor the strong, richly colored wood of the cherry tree. Yew is strong, fine-grained wood used for cabinetmaking and archery bows. Like mahogany, the wood of the iroko is resistant to both rot and insects and bears the "interlocked" grain of many tropical trees. Oak is one of the world's most durable woods. It is used in barrel-making, veneers, and flooring....
The purpose of this essay is analyze the case of IKEA, which has involved in the HR management. Meanwhile, choose two topics to identify the IKEA current situation, including training and development and cross-cultural management. From those two points, give some forward suggestions on the IKEA HR management practice.
The sources of IKEA’s successful entry into the furniture retail business were IKEA’s low prices and resilience. First, Ingvar Kamprad, the founder of IKEA, began selling furniture in his mail order company. Then he was faced with a social problem and turned it into a business opportunity. Since 1935, furniture prices rose faster than any other retail good at 41%. Kamprad responded by creating a line of furniture priced so that all could afford it. The present furniture cartel attempted to stifle Kamprad’s growth and success. The cartel banned Kamprad from selling directly to the consumer at shows, then managed to persuade the manufacturing cartel to stop supplying Kamprad with furniture. Kamprad responded by supplying elsewhere and now could charge even lower prices. IKEA’s success was due largely to low prices and Kamprad’s ability to capitalize on bad situations.
U.S. furniture exports are also showing a steady increase in revenue with 4% growth in both 2012 and 2013. Total exports were valued at $1.1 billion in 2013 with the largest foreign consumers of U.S. furniture being China, Canada and Mexico. Some companies focused on manufacturing for the export market have reported gains w...
DataMonitor, 2007. IKEA major retail competition in the US are: Furniture Brands International Inc., Office Depot Inc., Sauder Woodworking Co., Stanley Furniture Company, Inc., and Staples , Inc. This paper will identify the key macroeconomic variables that affect IKEA and the retail industry as a whole. To better understand the effects of such variables upon the industry, two specific variables will be developed further.
Table of Contents I. Introduction 3 II. Custom Woodworking Company Corporate Profile 3 III. Opportunity 4 IV. Project Concepts 5 V. Case Study Proposal 5 VI. Project Processes and Knowledge Areas 6 VII.
The world is developing every day and we continue to discover new and innovative ways to better our quality of life. A trend that everyone seems to be focused on is saving the environment, which is also known as sustainable living. Not only does this apply to our lifestyle and environment, but it also translates into design. Sustainable living is becoming more popular around the world and is a lifestyle using skillful and sensitive design. It eliminates negative environmental impact and requires renewable resources. We each have decided to research different furniture companies to broaden our knowledge of the innovative practices used in each company. Throughout our paper we will introduce each of our companies and the products and practices they use to produce sustainable furniture. Our research will show that sustainable furniture design is beneficial to consumers by allowing them to live a more environmentally friendly lifestyle as their manufacturers develop innovative ways to make renewable furniture.
Another example of IKEA’s international strategy in building good relationships with suppliers is in Asia, especially in Vietnam, where IKEA expanded its own supply base. Vietnam manufacturers offers low cost labor force and not expensive raw materials, while IKEA provides the view of creating a long-term, high-volume business relationship, and advice on finding the best according to the price raw materials, setting up and bulding factories, choosing what machines, equipments
Years ago Ikea committed to sustainability, its vision “to create a better everyday life for the many people” and its values standing at the base of this primary goal. The company seems to improve itself and make big steps toward this sustainable approach year by year, offering its customers a great value for money spend on all of their furniture products. The concept itself characterizes well its Swedish ruts, where individuals are accustomed to live a life
The companies I have selected for this assignment is Malaysia Steel Works (KL) Bhd (5098) and Kossan Rubber Industries Bhd. (7153), both of the company is from industrial products sector and its share is traded in main market.
As part of the European Union, inhabitants are able to live, study and work in any country that belong to the EU without any restriction or barrier. Also, The European Union make emphasis in the workers rights, they obtain benefits of this union as a permit is not requirement to work in any EU country. In addition, laborer force have the same working conditions as the nationals, and the social security or any health coverage can be pass to any country that the worker choose. As Every country issues their own passport, all of them share the same design features such as color and biometria impossible to forge which enforce national security. Free trade and non-costume barriers minimizes costs and prices for costumers. Then, it is easy to export as the safety standars and rules helps to minimize costs for companies.
While Indonesian business culture exists from different ethnics, there are multiple things that need to be encountered before doing business in Indonesia. When interacting with Indonesians you need to remain conscious of the differences. Doing business in Indonesia will mean you have to know especially the dominant Islamic culture and Chinese culture, since Chinese conduct much business in Indonesia and also be aware of the Javanese collectivist worldview.
IKEA is more than a furniture store they are a company driven by values (IKEA, 2014). The company seeks to make their consumers lives easier by providing them with modern, innovative, inexpensive products which they use to tackle daily home activities. IKEA Group has 298 stores in 26 different countries (IKEA, 2014). The company’s vision is “to create a better everyday life for the many people” (IKEA, 2014, para 1). Using innovative techniques for creating, producing, and marketing their products IKEA can provide consumers with durable products for reason...
1. What is the difference between a. and a. From an economic perspective, is the shift to a free trade regime in the textile industry good for Bangladesh? The shift to a free trade regime in the textile industry was good for Bangladesh. Bangladesh prospered when other economies weren't doing so well. The textile industry greatly increased, causing it to become a major reason as to why the economy has continued to increase.
The diversity of trees from soft wood to hard wood is found in the forest in Indonesia. The local people utilize their natural resources (wood) for construction, furniture and handcrafted goods to generate more revenues. Other than exporting goods to the world, they are also made use of it for personal benefits.